Several service representatives are upset that the newly hired representative with no previous experience will be paid $3,000 a year above the usual…

Several service representatives are upset that the newly hired representative with no previous experience will be paid $3,000 a year above the usual starting salary in the pay range. The department manager explained that the new hire would not accept the entry-level rate, so the company raised the offer by $3,000. All five reps currently earn salaries near the top of the scale ($15,000 higher than the new recruit), although they all started at the minimum starting salary a few years earlier. Use equity theory to explain why the five service representatives feel inequity in this situation.