Besides, the process of assessing the skills and competencies of an employee is subjective, and the salary offered to an employee may be more or less than what is justified for an employee of a certain caliber. This subjectivity leads the employers to decide different levels of income for different employees even if they are capable of contributing to the company’s goals equally. Income is also used as a tool to enhance the performance of employees and can be reduced as a liability for poor performance on the part of employees. Hence, it is unrealistic to think of a company whose employees experience no income inequality.
Income inequality could be unfair in a hypothetical world. It would be a world where all employees would be equally honest in their jobs and sincere to their employers. Ideally, people’s level of honesty and sincerity, as well as skills and competencies would be measurable on a scale, and the results thus calculated mathematically would not indicate any variation from case to case. People contributing to the company’s goals equally and who are equally competent in their work deserve to be paid equally. However, in the real world, this is as hard as impossible to achieve. Furthermore, the level of income of an employee does not only depend upon the extent to which he/she is fair in his/her work. While deciding the pay for an employee, a whole range of factors are taken into consideration that includes but are not limited to the level of education of an employee, employee’s age, and skills, and sometimes the gender and ethnicity of the employees also makes a difference.