Smallest meaningful pay increases: field test, constructive replication, and extension

Mitra, Atul, Tenhiälä, Aino and Shaw, Jason D. 2016, Smallest meaningful pay increases: field test, constructive replication, and extension, Human resource management, vol. 55, no. 1, pp. 69-81, doi: 10.1002/hrm.21712.

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Title Smallest meaningful pay increases: field test, constructive replication, and extension
Author(s) Mitra, Atul
Tenhiälä, Aino
Shaw, Jason D.
Journal name Human resource management
Volume number 55
Issue number 1
Start page 69
End page 81
Total pages 13
Publisher Wiley
Place of publication Hoboken, N.J.
Publication date 2016-01
ISSN 0090-4848
Keyword(s) pay for performance
emotion in the workplace
Summary The authors extend prior literature by examining, in two distinct field settings, smallest meaningful pay increases (SMPIs) in terms of magnitude, behavioral intention, and affective reactions. In Study 1, a two-wave study of 177 employees of a university medical center in the United States, the authors find stable thresholds of about 5.0 percent for positive reactions to pay increases (magnitude [5.4 percent], behavioral intentions [4.2 percent], and affective reactions [5.6  percent]). In Study 2, a sample of 495 university employees in Finland, the authors also find stable but slightly higher thresholds of about 8 percent for behavioral intentions (8.4 percent) and positive affective reactions (7.2 percent) to pay increases. They also find threshold effects of –5.7 percent for behavioral intentions and –5.8  percent for negative affective reactions in response to restricted future pay increases levied in the transition to a new pay system. Discussion of the results centers on pay raise administration and future research regarding implied and direct pay reductions.
Language eng
DOI 10.1002/hrm.21712
Field of Research 1503 Business And Management
Socio Economic Objective 0 Not Applicable
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2015, Wiley
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Document type: Journal Article
Collections: Faculty of Business and Law
Department of Management
2018 ERA Submission
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