Perceptions of justice in employee benefits

Research has found that benefits are relevant in the fairness assessments of employees (Arnold T, Spell C, J Bus Psychol 20:599–620, 2006; Tremblay M, Sire B, Pelchet A, Hum Relat 51:667–688, 1998). Also, research has shown that employee perceptions of how fairly they are being treated have important implications for many business-related outcomes, including productivity and satisfaction (Greenberg J, J Manage, 16:399–432, 1990), mental health (Tepper BJ, Organ Behav Hum Decis Process 86:197–215, 2001), and conflict (Cropanzano R, Bowen DE, Gilliland SW, Acad Manage Perspect 21(4):34–48, 2007). We, therefore, discuss three contemporary issues associated with justice and benefits. First, while benefits represent a significant business expense, the costs of minimizing benefits may ultimately be more costly if the level of benefits is seen as unfair. Second, the relevance of justice perceptions with respect to benefits is less clear compared to what we know about other types of compensation. Third, we consider group as well as individual level effects on perceptions of justice related to benefits. Finally, recommendations are made for alleviating the detrimental effects of injustice.