Which type of equity involves comparing oneself to a colleague performing the same role in a different organization?

Occupational equity involves assessing one’s position and compensation in relation to peers in the same role but within different organizations. This comparison helps individuals understand the market standards for their occupation, including typical salaries, benefits, and working conditions. By focusing on a broader occupational category rather than a specific company or job, individuals can gauge whether they are being fairly compensated relative to their professional peers in the industry.

This concept is particularly relevant for employees who are considering job transitions or negotiating salaries, as they need to be informed about what others with similar roles in different organizations earn. This understanding can lead to better decision-making regarding career progression, job satisfaction, and retention.

In contrast, company equity looks at compensation relative to one’s own organization, job equity assesses fairness within specific job roles, and individual equity focuses on personal contributions and compensation relative to one’s own performance, not how it compares to others in similar roles.