It might seem obvious that being paid less than someone else for the same work would be demotivating. But according to research from UCL, in situations where there are wide disparities in pay, everyone is less motivated to complete tasks. The study asked 810 participants to complete simple tasks in return for a reward; they were told that other people were being paid more or less than them to varying degrees of inequality. "Our findings may shed light on how psychological mechanisms, apart from structural barriers, can contribute to higher unemployment and lower university application rates of people from disadvantaged backgrounds," says Dr. Filip Gesiarz, lead author. "People who are economically disadvantaged might face a two-fold reduction in motivation and well-being - first due to their lower relative position, and second due to their reaction to the unfair distribution of opportunities."

It’s not news to say that inequality hurts everyone, but 78% of the biggest firms in the UK still report a gender gap in their pay and the ethnic minority gap remains high for some groups. These disparities will clearly impact those who are paid less, but this study finds that when people see an unfair situation, everyone chooses to disengage. This shows that firms that take action to promote inclusivity by eliminating wage gaps for equal work will not only right ethical wrongs but will also have a more motivated workforce as a result. However, employers should be sure to make a genuine effort to make change, as employees are keeping a watchful eye and are increasingly willing to call out their own companies.

Unequal pay could bring down, even those at the topWindows (2020)

Isabel Evans is a behavioural analyst at Canvas8. Fascinated by how and why people do things, she has an MSc in cognitive and decision sciences from UCL. You can often find her drinking endless coffees, running around Regent’s Park, or delving into a book.