Comparison is human nature. In every workplace, employees inevitably compare themselves – their salaries, career progression, recognition, even work-life balance – with their colleagues.
Often these comparisons remain invisible. But they can quietly erode morale, drive disengagement, and even fuel unhealthy financial decisions. In this article – and in our podcast episode with special guest, Neil Bage – I explore why workplace comparison matters, the hidden costs it can bring, and how you as employers could respond proactively to foster an even healthier, more resilient working culture.
Why employees compare themselves at work
Work is a social environment. People don't just measure their performance against formal targets. They measure it against each other.
‘Don’t compare yourself’ is well-meant advice – but the truth is, we can’t not compare. As behavioural finance expert Neil Bage puts it on our podcast: ‘We have evolved to look for cues from within the tribe. If someone is behaving in a particular way and it seems to work, we tend to mimic or learn from that’. It’s not a flaw. It’s a feature of how humans operate in groups.
In the workplace, this social wiring can be motivating. But left unchecked, it often becomes corrosive. Disparities in pay, recognition, and flexibility can easily trigger resentment, and unmanaged comparison in the workplace can potentially lead to:
- Financial overreach as employees try to ‘keep up’
- Disengagement when they feel they’re falling behind
- Erosion of trust and collaboration
The possible impact of workplace comparison
Unchecked workplace comparisons can cause issues for both individuals and the business, including:
1. Lower morale and employee engagement
When employees feel they’re losing the ‘comparison game’, morale suffers. They may feel undervalued, trapped, or resentful – affecting performance and wellbeing.
2. Increased financial stress
Trying to match perceived lifestyles can lead to overspending and debt. And financial stress doesn’t stay at home – it shows up as presenteeism, absenteeism, and lower productivity. Check out our article on why health and wellbeing belongs on every manager’s agenda on our Insights page for more hints and tips.
Neil warns that many people only ever see each other’s ‘cropped existence’. On our podcast he said: ‘People only show you their highlight reels... when they close the front door, you have no idea what’s really going on’. This distorted perception can fuel false benchmarks, leading people to make choices that hurt their wellbeing.
3. Unhealthy competition
When people compare but don’t feel safe to speak up, competition usually replaces collaboration. That could potentially weaken culture, connection, and innovation in the workplace.
How employers can respond to comparisons at work
You can’t eliminate comparison. But you can guide it. Here’s how:
1. Increase transparency
When information is missing, assumptions fill the gap. Consider sharing clear, fair structures around pay, promotions, and recognition.
Balance openness with context. Simply publishing salaries without explanation can backfire. Focus instead on fairness, process, and opportunity.
2. Support employee financial wellbeing
People often feel shame around money. Normalise support. Offer workshops, coaching, or access to financial advice.
On our podcast, Neil describes envy not as something to suppress but as a data point: ‘Envy kicks in when people haven’t taken the time to ask themselves what life they truly want... once they do, they stop caring about other people’s [cars]’ . Helping employees understand their own financial goals can reduce comparison-driven stress.
Remind teams that financial wellbeing is part of overall wellbeing. Encourage healthy habits, not status symbols.
3. Share and celebrate diverse success stories
Not everyone’s path leads to the top of the ladder. Celebrate stories of people who grow through mentorship, flexibility, or personal development.
Profile a variety of wins. That shows that success isn’t a single track – it’s a personal journey.
4. Emphasise personal growth
Shift focus from ‘who’s ahead’ to ‘how am I growing?’ Encourage 1:1s and appraisals that focus on individual goals, not rankings.
Train managers to spot comparison triggers and redirect them into growth conversations.
Why tackling comparisons matters
Comparison is powerful. It’s how we form identity, expectations, and choices. If left unchecked, it can cause real harm. But with awareness, support, and culture design, it can be nudged into a healthier space.
In our 'How to compare yourself' episode of the Money:Mindshift podcast with Neil Bage, I talk about how comparison can become a force for clarity, if we learn to handle it better. That lesson applies just as much in the workplace.
By addressing the hidden costs of workplace comparison and embedding support into your culture, you could help your people and business thrive.
You can always head to our financial wellbeing support page for more tools, resources and research.