This is a concept which believes that employees naturally compare their own work performance (and bonuses and rewards) to that of those around them to judge whether they are being treated fairly by management and the organization. Within the equity theory employees are motivated by a sense of fairness being practised within the workplace. 

Some of the factors that employees consider within the equity theory are the salary, benefits, compensation and promotions available within the organization. This is one of the reasons why employers must endeavour to provide fair treatment to all their staff.