The Indian Premier League (IPL), renowned for its glitzy, high-octane cricket matches, shares more with corporate workplaces than one might think. Recently published research in the IIMB Management Review explores the impact of unequal pay structures on team performance within IPL teams, offering valuable insights for HR professionals.
Analyzing data from 11 IPL seasons, the study reveals that teams with significant internal pay disparities often underperform. This finding aligns with the equity theory in organizational psychology, which suggests employees are more productive when they perceive pay distribution as fair. The study highlights how uneven compensation can disrupt team harmony, causing resentment and lowering performance.
The ongoing IPL 2025 season provides a live demonstration of these principles, as evidenced by the performance of several teams.
Punjab Kings: A Model of Balanced Payroll
After years of mediocre performance, the Punjab Kings (PBKS) have turned a corner this season. By acquiring star batter Shreyas Iyer for a substantial Rs 26.75 crore while maintaining balanced salaries across the team, PBKS focused on building depth and role clarity. This strategy has paid off, with the team rising to the top of the league table. Their success is credited to stable leadership, equitable recognition, and enhanced team spirit.
Royal Challengers Bengaluru: From Stars to Strategy
Royal Challengers Bengaluru (RCB), historically known for investing in star players like Virat Kohli, has shifted its strategy in 2025. Rather than focusing on a few high-profile players, RCB adopted a more balanced approach, retaining core performers and acquiring impactful domestic and international talent. This strategic pivot has propelled RCB into the finals, demonstrating that balanced pay and inclusivity can elevate team performance.
Lucknow Super Giants: The Pitfalls of Superstar Pay
In contrast, the Lucknow Super Giants (LSG) illustrate the drawbacks of over-investing in a single star. Despite securing Rishabh Pant for a record Rs 27 crore and witnessing some thrilling performances, the team failed to qualify for the playoffs. The disparity in pay may have contributed to morale and cohesion issues, underscoring the importance of balanced compensation.
Implications for HR Leaders
These IPL strategies offer several lessons for HR leaders:
– Avoid the ‘Superstar Syndrome’: Relying heavily on a few high-paid individuals while undervaluing the team can backfire. Success is built on depth and inclusivity.
– Promote Transparency and Fairness: Compensation should reflect not only past performance but also role significance and future potential. Clear pay policies foster trust and engagement.
– Invest in Team Cohesion: Whether in sports or corporate settings, outcomes improve when individuals work toward shared goals and feel equally important to the mission.
The IPL provides an unexpected yet vivid playbook for businesses, emphasizing that fair pay, inclusive recognition, and strong team bonds drive performance both on the field and in the corporate world.
Note: This article is inspired by content from https://hr.economictimes.indiatimes.com/news/hrtech/payroll-and-benefits/ipl-shows-why-pay-equity-drives-performance-on-the-field-and-in-the-workplace/121577824. It has been rephrased for originality. Images are credited to the original source.