In a groundbreaking study emerging from Washington State University, researchers have uncovered a compelling link between pay fairness among key team members and overall team success, providing fresh insights with wide-ranging applications in both professional sports and corporate environments. Utilizing data from National Basketball Association (NBA) teams over a decade, this research elucidates how inequities in compensation among a team’s strategic core can detrimentally affect collective performance by undermining crucial coordination — a finding with profound implications for workplace management beyond sports.
The study hones in on a crucial yet often overlooked dimension of team dynamics: not just individual effort levels, but how that effort synchronizes among pivotal players within the team’s core. According to Jeremy Beus, lead author and management professor at WSU’s Carson College of Business, coordinated effort is distinct from mere exertion. He emphasizes that output is not simply the sum of hard work; instead, success hinges on team members working in concert, seamlessly complementing each other’s contributions to create a cohesive unit. This nuanced understanding brings a new lens to evaluating performance disparities in collaborative settings.
Drawing from a robust dataset encompassing NBA seasons from 2009-2010 through 2019-2020, the researchers identified each team’s strategic core as the five players with the highest minutes played. Their analysis centered on how pay variability within these core players relates to the team’s winning percentage, with particular attention paid to how disparate salaries affect not only individual motivation but also the subtle mechanics of coordination essential in team sports. The NBA’s rich, publicly accessible data on player salaries and performance statistics provided an unparalleled laboratory to test theories on pay inequity and cooperation.
The research team operationalized coordination through metrics such as defensive ratings, which reflect how well a team performs defensively as a unit, rather than individual contributions. Collective effort was gauged using tangible statistics including rebounding and the percentage of loose balls recovered — quintessential indicators of hustle and perseverance. Their findings revealed a nuanced relationship: pay disparities among the top players correlated with diminished team success, but critically, this effect was mediated primarily through reductions in coordinated effort rather than overall effort levels alone.
This distinction highlights an important organizational dynamic — that pay inequities erode the synchronization among core members, which is essential for maximizing team performance. When teammates perceive unjust salary differences, it can foster resentment, reduce trust, and ultimately fracture the delicate interplay required for fluid collaboration. Thus, even if individual players maintain high effort, misalignment and lack of cohesion can neutralize these inputs and impair outcomes.
Such insights resonate well beyond sports arenas. The study draws parallels to workplace scenarios plagued by salary compression — a phenomenon evident in tight labor markets where newly hired employees command salaries close to or even exceeding those of more tenured staff. This compression breeds dissatisfaction among experienced personnel who feel undervalued, potentially impairing their willingness to engage fully and coordinate strategically with colleagues. Beus’s research suggests that equitable pay structures, particularly among pivotal team members, are vital to sustaining organizational harmony and effectiveness.
Furthermore, the research underlines the importance of transparency and perceived fairness in compensation policies. When salary differences reflect actual performance disparities — as exemplified by star athletes earning more than bench players — there is generally acceptance. However, when core players perceive unjustified pay gaps, it triggers detrimental effects on team chemistry. This subtle but critical distinction offers managers a refined understanding of how to calibrate incentives to align economic rewards with contribution and maintain team cohesion.
The implications for leadership extend to proactive salary management and communication strategies that emphasize both fairness and collective objectives. Organizations would benefit from regularly assessing pay structures to ensure they do not inadvertently sow discord among key contributors. Encouraging a culture that values coordinated effort as highly as individual productivity could be a pivotal strategy to elevate overall performance and employee satisfaction.
In a broader context, the study showcases the utility of sports data as a proving ground for organizational theories. Beus admits to being a sports enthusiast who leverages the rich, quantifiable datasets available in professional sports to tackle complex questions in management and team dynamics. This interdisciplinary approach bridges the gap between empirical rigor and practical application, offering a model for future research across diverse fields where team cooperation is instrumental.
Looking forward, Beus and his colleagues are expanding on this research by examining how pressure affects team performance in collegiate football, further exploring how environmental factors interact with pay equity and coordination to influence outcomes. Such efforts underscore the evolving understanding of the intricate social and economic mechanisms at play in high-stakes team settings, whether on the court or in the corporate boardroom.
In summary, this study represents a significant advance in unraveling the complex interplay between pay equity and team performance. It stresses the critical role of coordination among a team’s strategic core and offers evidence that fairness in compensation is not just an ethical issue but also a strategic imperative. The lessons derived from NBA data provide actionable insights for managers seeking to maximize team effectiveness by fostering fairness, transparency, and aligned incentives, ultimately enhancing both performance and morale.
Subject of Research: People
Article Title: Show Them the Money? Better Do it Fairly: The Effects of Pay Inequity in a Team’s Strategic Core
News Publication Date: 11-Dec-2025
Web References: http://dx.doi.org/10.1080/08959285.2025.2601951
References: Beus, J., Parkinson, S., & Bates, J. (2025). Show Them the Money? Better Do it Fairly: The Effects of Pay Inequity in a Team’s Strategic Core. Human Performance.
Keywords: Pay Inequity, Team Coordination, Strategic Core, NBA, Team Performance, Salary Compression, Workplace Management, Collective Effort, Defensive Rating, Organizational Behavior, Sports Analytics
