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

By Jason D. Shaw, N. Gupta. 2001

132 citations recorded by the source corpus.

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 e nancial need as a potential moderator of the relationship between pay fairness and employees’ physical health, psychological health, and work-related behaviours. Di Verential exacerbating and attenuating e Vects are predicted for various outcomes. In a longitudinal study of 651 employees of e ve 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.

Subfields: General Health Professions, Social Psychology

View Paper: https://www.semanticscholar.org/paper/bbc863c6c85ab20e42d9bb73e5badc1cb79e3527

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In General Health Professions

In Social Psychology

Citations in the corpus

Let the evidence speak again! Financial incentives are more effective than we thought (2015, background): “A surfeit of studies on pay fairness (Shaw and Gupta, 2001; Shaw, in press, b), unexplained variation in pay (Shaw et al., 2002; Kepes et al., 2009; Trevor et al., 2012; Conroy et al., 2014; Shaw, 2014), explanations and procedural justice (e.g. Shaw et al., 2003) tell us clearly that individuals…”
The effects of pay level on organization‐based self‐esteem and performance: A field study (2004, background): “Given the importance of pay level and the large expense that pay represents to most organizations, understanding how and why pay level influences the behaviour of employees in organizations provides important theoretical and practical insights (Shaw & Gupta, 2001).”
Whistle While You Work (2012, background): “Shaw and Gupta (2001) studied 651 employees from five companies and found a correlation of .24 between life satisfaction and performance measured 2 years later.”
Psychological resilience, organizational resilience and life satisfaction in tourism firms: insights from the Canterbury earthquakes (2020, background): “Turnover rates are lower amongst those with higher levels of life satisfaction (Rode, Rehg, Near, & Underhill, 2007; Shaw & Gupta, 2001).”