Unfair — and Unfixable? The Simple Truth About Salaries - Knowledge@Wharton

The system often in place today, he says, lines up like this: “Salaries that don’t support a middle-class lifestyle, management gets rewarded for serving shareholders, and everyone is miserable.” Part of the reason firms haven’t been able to develop a better way of setting salary is that it’s really difficult, says Wharton management professor Adam Cobb. “You could make the case that this is the biggest HR challenge in most organizations: How do you pay people fairly, in a way that’s motivating and encouraging the right kinds of behaviors? Because it’s a moving target. We are human beings, and our perception of these things changes over time. What you think is fair and equitable might not be what I think is fair and equitable.” http://knowledge.wharton.upenn.edu/article/simple-truth-wage-gaps/