Ignorance is Bliss, or is it? The Effects of Pay Transparency, Informational Justice, and Distributive Justice on Pay Satisfaction and Organizational Commitment
Advisor Information
Wayne Harrison
Location
Dr. C.C. and Mabel L. Criss Library
Presentation Type
Poster
Start Date
2-3-2018 2:15 PM
End Date
2-3-2018 3:30 PM
Abstract
Pay transparency may help organizations reduce wage discrepancies while also increasing employees’ satisfaction with their pay and commitment to their organization. Informational and distributive justice may also play a role in these relationships. A 2 (Pay Transparency) X 2 (Informational Justice) X 2 (Distributive Justice) between-subjects factorial design was used to test the effects of these manipulations on pay satisfaction and commitment. A total of 293 participants completed the online survey. Employees experienced greater pay satisfaction and organizational commitment when their supervisors were more transparent regarding the organization's pay and when pay was equitable compared with others. Employees also experienced greater organizational commitment when their supervisors provided them with an explanation regarding the pay information being shared. In addition, pay transparency had a larger effect on pay satisfaction when distributive justice was low compared to high. Results found support that employees respond favorably to pay transparency.
Ignorance is Bliss, or is it? The Effects of Pay Transparency, Informational Justice, and Distributive Justice on Pay Satisfaction and Organizational Commitment
Dr. C.C. and Mabel L. Criss Library
Pay transparency may help organizations reduce wage discrepancies while also increasing employees’ satisfaction with their pay and commitment to their organization. Informational and distributive justice may also play a role in these relationships. A 2 (Pay Transparency) X 2 (Informational Justice) X 2 (Distributive Justice) between-subjects factorial design was used to test the effects of these manipulations on pay satisfaction and commitment. A total of 293 participants completed the online survey. Employees experienced greater pay satisfaction and organizational commitment when their supervisors were more transparent regarding the organization's pay and when pay was equitable compared with others. Employees also experienced greater organizational commitment when their supervisors provided them with an explanation regarding the pay information being shared. In addition, pay transparency had a larger effect on pay satisfaction when distributive justice was low compared to high. Results found support that employees respond favorably to pay transparency.