Impact of Compensation on Inclusive Organizations

Abstract

Discrimination in compensation for minority groups and individuals with regard to gender, physical disability, religion, and culture affects inclusion in an organization. This study is a combination of two studies and endeavors to verify our initial inference that compensation gaps are significantly related to inclusion. A mixed method approach has been adopted; in first part of the study, compensation data obtained from 32 organizations (608 observations) have been analyzed quantitatively. The study finds significant correlation between components of compensation gaps and inclusion. Gender as basis of discrimination was found insignificantly correlated to compensation, while pay for performance was found negatively related to inclusion. We have proposed a model to predict feeling of inclusion if components of compensation and discriminatory factors are known. In second part of the study, based on 25 in-depth interviews, cognitive basis of compensation gaps has been divulged, and we conclude that implementation of compensation equity and removal of cognitive bases of discrimination seem mandatory actions for inclusion.

Influence of Responsible Leadership on Inclusive Organizations: A Mixed-Method Study

“…Ensuring sustainable/profitable and growth-oriented operations of the organization is a major business responsibility of responsible leadership that necessitates close attention to workgroup inclusion. Workgroup inclusion is the bottom line for an organizational member's involvement in the work in return for compensation received by them from the organization (Irfan et al, 2020). Responsible leaders influence inclusive organizations through work meaningfulness and united diverse followers by getting their full participation and involvement in organizational activities (Martinescu et al, 2021).…”

“…For leading inclusive organizations, a leadership cognizant of the sensitivities of diversity in the internal and external environment seems essential (Irfan et al, 2020;Mousa & Puhakka, 2019). Based on the idea that organizational leaders should meet relevant social, environmental, and futuristic responsibilities, responsible leadership will likely meet the multifarious requirements of inclusive organizations (Gomez & Bernet, 2019).…”