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Pay fairness and employee outcomes: exacerbation and attenuation effects of financial need

journal contribution
posted on 2001-09-01, 00:00 authored by Jason Shaw, N Gupta
The consequences of pay fairness perceptions are rarely explored, in part because of the lack of a compelling theory which relates pay attitudes directly to distal health and behavioural outcomes. We propose financial need as a potential moderator of the relationship between pay fairness and employees' physical health, psychological health, and work-related behaviours. Differential exacerbating and attenuating effects are predicted for various outcomes. In a longitudinal study of 651 employees of rive American mid-western organizations, exacerbation predictions were strongly supported in cross-sectional analyses for life satisfaction, depression, and somatic complaints. Attenuation predictions received support cross-sectionally and longitudinally for job search intent, but were not supported for performance, absenteeism, or voluntary turnover. The importance of these results for understanding pay dynamics and for outlining mid-range theories is highlighted.

History

Journal

Journal of occupational and organizational psychology

Volume

74

Issue

3

Pagination

299 - 320

Publisher

John Wiley & Sons

Location

Chichester, Eng.

ISSN

0963-1798

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal

Copyright notice

2001, The British Psychological Society

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