What is “felt-fair pay”?
Soon after Jaques discovered time-span of discretion (TSD), he noticed people in different departments at Glacier Metal (who had the same TSD) stated similar amounts of money to feel fair to them for the work they were assigned to do. After further investigation he realized the correlation between these two numbers was very strong. As their TSD got longer, their felt-fair pay (FFP) got larger. To be clear, time-span correlates with the total compensation that an employee in a given economic geography (e.g. urban Canada) feels is fair pay for the work in his or her role. Felt-fair pay is not what the person is paid. It is not Actual Pay (AP). What is actually paid may be a different matter entirely. But if the gap between FFP and AP is great, morale problems will develop.
