Given present day emphasis on pay equality, the current study sought to determine whether pay equity still mattered to employees and employers. Results indicated that employers who ignore pay equity may be susceptible to more employee turnover, workers with lower task performance, workers who are less engaged, workers who have lower satisfaction, and workers who commit fewer Organizational Citizenship Behaviors (OCBs) at all levels. Specifically, with a large representative U.S. sample (N = 999), PROCESS macro mediation analysis (Hayes, 2018) found that Perceived Pay Equity was, indeed, strongly related to the important employee- and employer-valued outcomes specified above. Tests of significance (seven of 12) found that a facet or facets of Organizational Justice mediated the relationship between Perceived Pay Equity and employer-valued outcomes, namely, Intention to Stay, Task Performance and OCBs. Similarly, tests of significance (seven of 12) revealed that Pay Satisfaction mediated the relationship between Perceived Pay Equity and Intention to Stay, Task Performance, and OCBs. Lastly, in all 12 cases tested, Work Engagement mediated the relationship between Perceived Pay Equity and Intention to Stay, Task Performance, and OCBs. Together, 26 of the 36 statistical tests for indirect effects found that Perceived Pay Equity played a vital, albeit indirect, role in predicting important employee behaviors and attitudes as well as meaningful employer-valued outcomes. Findings imply that strict application of pay equality policies, with complete disregard for productivity-relevant employee inputs and outputs, may provide a compensation system that does not provide the proper antecedents for many incredibly important organizational outcomes.
|Advisor:||Thomas, Adrian L|
|Commitee:||Best, Stephen T, Helford, Michael C|
|School Location:||United States -- Illinois|
|Source:||DAI-A 81/9(E), Dissertation Abstracts International|
|Subjects:||Business administration, Management|
|Keywords:||Equal pay, Organizational justice, Pay equality, Pay equity, Perceived pay equity, Work engagement|
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