Should They Stay or Should They Go? Why Fairness Matters in Talent Management

In today’s labour market, where employees openly share their workplace experiences and expectations, perceptions of fairness are a strategic necessity. However, segmented workforces are common across many organisations, especially where roles differ significantly in their operational demands or specialised skills. Yet while segmentation can support tailored development and reward programmes, even small inconsistencies can quickly erode a sense of fairness. This research supports that when employees perceive unfairness, satisfaction drops, motivation weakens, and retention suffers. 

This dynamic emerged clearly in a recent audit undertaken within a public‑sector organisation, which was conducted by Alice Brown, Senior HR Adviser at Hampshire and Isle of Wight Fire and Rescue Service and a student on the Senior People Professional Degree Apprenticeship at the University of Exeter. The review focused on talent management practices across two distinct employee segments. What was found offers valuable lessons for any organisation managing multiple workforce groups. 

A Tale of Two Segments: What the Audit Uncovered 

The audit revealed a striking disparity across the segments. One workforce segment received an annual financial reward as part of its terms and conditions, while the other received no equivalent mechanism for recognising performance. Employees in the unrewarded segment increasingly felt undervalued, and their motivation for discretionary effort declined.  Exit data, which was collected from surveys when employees left the organisation, reinforced this picture, highlighting that reasons for leaving were more “pull” than “push”. Those in the disadvantaged segment were more likely to leave, often after shorter tenures, seeking career development they felt was more accessible elsewhere. 

This inconsistency led to deeper questions about perceived fairness, which can be understood through the lens of organisational justice theory, suggesting that a perception of fairness can be realised through;  distributive justice, the balance between what employees put in and what they get out compared to others (such as pay and benefits); procedural justice, whether decisions follow transparent and consistent processes; and informational justice, whether employees receive clear explanations for why decisions are made. 

Turning Insight into Action.  

One of the audit’s key messages is that strengthening internal stay factors. For us, this means not only fixing disparities but building a culture where fairness is visible, consistent, and proactively communicated.  

Our data suggested that perceptions of unfairness arose when employees compared benefits across segments and felt their efforts were undervalued or not invested in. Thus, the following suggestions were made to address those stay factors.

• Make Reward Systems Fair and Transparent
  • Review reward programmes regularly and analyse usage to ensure consistency across segments.
  • Communicate the full benefits package (financial and non‑financial) so no group is left unaware of what support exists.
  • Ensure performance‑based systems use clear, equitable criteria that align with organisational justice principles.

• Clarify Eligibility Criteria
  • Align eligibility with job design so rewards are credibly linked to role competencies.
  • Resolve ambiguous definitions of “performance” or “capability” to prevent confusion.
  • Review payment mechanisms to make them accurate, responsive, and easy to administer.

• Use Organisational Data More Intelligently
  • Analyse reward patterns, exit data, and harness stay‑interview insights to identify discrepancies early.
  • If external opportunities are driving turnover, strengthen internal offerings, career pathways, culture, and equitable rewards.
  • Conduct stay interviews proactively to understand what keeps employees committed before they start looking elsewhere. 

Fairness as a Competitive Advantage 

The audit reinforces a simple truth: fairness shapes culture, behaviour, and retention. When employees believe they are treated equitably and understand how and why decisions are made, they are far more likely to stay, contribute, and grow. 

In an environment where organisations must work harder than ever to retain talent, fairness isn’t an administrative exercise. It’s a strategic lever, and those who use it wisely will be the ones whose employees choose to stay. 

 

Recommended reading: 

Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H., & Yee Ng, K. (2001). Justice at the Millennium: A Meta-Analytic Review of 25 Years of Organizational Justice Research. Journal of Applied Psychology, 86(3), 425–445. https://doi.org/10.1037/0021-9010.86.3.425