Top 6 Ways Leadership Fairness Improves Employee Engagement

The Importance of Leadership Fairness: A Cornerstone for Employee Engagement
We know from leadership simulation assessment data that leaders are often judged by their ability to lead, manage, and coach others to perform at their peak — especially through times of organizational change. We also know from organizational culture assessment data that one crucial attribute often distinguishes great leaders from the rest of the pack — fairness. We know from project postmortem data that leadership fairness affects organizational culture, employee performance, and employee engagement.

The Top 6 Ways Leadership Fairness Improves Employee Engagement

1. Builds Trust and Credibility
   One of the most significant outcomes of leadership fairness is trust. Employees who perceive their leaders as fair are more likely to trust not only their leaders but the organization as a whole. Trust, in turn, lays the foundation for open communication and psychological team safety.

   When people feel that decisions are made transparently and consistently, they are more inclined to share ideas, admit mistakes, and seek feedback. Leaders who treat their teams with fairness foster credibility which leads to higher levels of employee commitment and loyalty.

   You will know you are building trust and credibility through fairness when employees say that they:

   — Are treated fairly regardless of race, gender, age, or other differences.
   — Believe the organization will be successful in the future.
   — Trust senior leaders to lead the organization to future success.
   — Feel that senior leaders value people as their most important resource.
   — Think senior leaders demonstrate integrity.

2. Enhances Employee Engagement
   We know from employee engagement action plans that fairness is linked to improved employee engagement. Leaders who practice fairness provide equitable opportunities for advancement, recognize individual contributions appropriately, and maintain consistent performance evaluations. Employees are more likely to feel valued and motivated when they perceive that the performance management system is objective, and that merit is recognized over favoritism or workplace politics.

   Fairness leads to greater discretionary effort and overall performance.

   You will know you are enhancing employee engagement through fairness when employees say that they:

   — Find their job interesting and challenging.
   — See professional growth and career development opportunities.
   — Are allowed to utilize their strengths in their role.

3. Encourages Collaboration and Teamwork
   Fair leaders create environments where collaboration at work can flourish. When employees feel they are treated fairly, they are more likely to collaborate openly without fear of favoritism. Fairness minimizes a culture of internal competition that could otherwise erode teamwork and fosters a culture where knowledge-sharing, problem-solving, accountability, and mutual respect are prioritized.

   Done right, a sense of fairness empowers diverse voices and encourages more inclusive decision-making and innovative thinking.

   You will know you are encouraging collaboration and teamwork through fairness when employees say that:

   — Goals and accountabilities are clear to everyone.
   — They can depend on the others at work.
   — The people they work with are committed to producing top quality work.
   — They are treated with respect.

4. Mitigates Conflict and Reduces Employee Turnover
   Leadership fairness also plays a pivotal role in reducing workplace conflicts and mitigating unwanted employee turnover. In environments where decisions are made transparently and based on objective criteria, the risk of interpersonal conflicts decreases. Employees are less likely to feel resentment toward each other or their supervisors when they know that rules and expectations are applied consistently.

   Fairness also helps to retain top talent. High-performing employees are less likely to seek opportunities elsewhere if they believe they are being rewarded and recognized proportionately for their contributions.

   You will know you are mitigating conflict and reducing turnover through fairness when employees say that:

   — They are paid fairly.
   — Their contributions are recognized.
   — Their job gives then flexibility to meet their personal and professional needs.
   — The workplace culture is healthy and supports their wellbeing.
   — The benefits meet their needs.

5. Promotes Ethical Decision-Making
   Fairness and ethical decision making go together. When leaders consider and actively involve all key stakeholders in decisions that serve the greater good, it is easier for people to commit to what has been decided. It also sets the expectation for actions and decisions to be not just beneficial in the short term but also sustainable in the long term.

   You will know you are promoting ethical decision making through fairness when employees say that they:

   — Are confident the company would do what is right if concerns are raised about discrimination.
   — Trust the senior leaders to deal with issues concerning equal treatment at this organization.
   — Trust the organization to be fair to all employees.
   — Know where and how to report an ethics issue.
   — Feel comfortable reporting something wrong at work.
   — Senior leadership enforces policies and rules fairly and consistently across the entire organization.
   — Are asked for their input regarding changes that affect their work.
   — Feel heard and that their ideas are taken seriously.
   — Feel empowered to make decisions that impact their work.
   — Are encouraged to find new ways of solving problems.
   — Have the freedom to improve products, processes, and services.
   — Can share their opinions at work openly without fear of reprisal.
   — Feel their opinions and ideas are valued.

6. Enables Change Resiliency
   Organizational change (e.g., new strategies, structures, or business practices) typically brings uncertainty and anxiety. When changes happen at work, leadership fairness becomes even more critical. Employees need to trust that decisions are being made with fairness and transparency for the greater good.

   Leaders who communicate openly and apply consistent principles during these transitions help ease fears and maintain morale. Fairness can make the difference between a change initiative that succeeds and one that is met with change resistance or complacency.

   You will know you are enabling change resiliency through fairness when employees say that:

   — Changes are made in a way that is consistent with the company’s mission, vision, and values.
   — The company does a good job of informing employees of changes.
   — The company effectively manages change.
   — Have confidence in leadership to successfully manage emerging challenges.

The Bottom Line
Employees want to be treated fairly.  The most effective leaders foster trust by embedding fairness into decision-making and the way work gets done on a daily basis.  Leadership fairness creates a positive organizational culture that supports innovation, performance, and long-term success.

To learn more about becoming a leader that people want to follow, download 29 Ways to Build and Maintain Trust as a Leader