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In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the past two decades and much progress has been made in terms of understanding its consequences for individual, team, and organizational outcomes. Our review of this research exposes several levels-related assumptions that have limited theoretical and empirical progress. We isolate the issues that deserve attention, develop an illustrative multilevel model, and offer a number of testable propositions to guide future research on pay structures.

The purpose of this paper is to investigate the determinants of pay satisfaction of executive-level employees in public sector of Sri Lanka, which follows an open pay system.

The perceptions of equity, love of money, justice and seven individual and socio-demographic characteristics were investigated as the determinants of pay satisfaction. The survey methodology is used for data collection.

The findings showed equity, love of money, justice, the years of work experience in public sector, the number of income earners in the family and the number of dependents in the family as the significant predictors of pay satisfaction. Gender is identified as a significant predictor of love of money.

This study investigated the dynamics of pay satisfaction in a novel research context – i.e. public sector, an open pay system, gender equality in the pay system and an Asian developing country.

This study aims to examine how highly innovative firms behave differently from their peers to become profitable. The authors investigate this through two distinct groups, one group of firms that have appeared on the Forbes 100 most innovative firms for 5 out of the past 10 years and a carefully curated control group.

Using a matched sample of 190 distinct firms, all with 10 years of historical data, the authors conduct a series of regressions and two mediated models. This method enables the examination of several possible differentiators for highly innovative firms, namely, CEO Pay, CEO Pay Ratio, Median Employee Pay and Corporate Social Responsibility (CSR).

In all, the authors conducted five separate hypothesis tests, all with statistical significance. Of note, the authors find innovative companies do pay employees more, engage in more CSR acts and are more profitable than peer companies. In a mediated regression model, the authors also find that the median employee pay fully mediates the relationship between firm innovation and corporate financial performance.

The study first shows that these highly innovative firms do not reach a position to rely merely on their innovation reputation to be profitable or attract eager employees. The authors find no relationship between years on the Forbes 100 list and profitability, median pay or total CSR in the data.

This research uses commonly available data to explore how innovative firms behave. Rather than being single-mindedly focused on innovation, results indicate that innovative elite firms are more generous (in employee pay) and concerned about non-profit factors (CSR) than their peers. Innovative firms are then able to do all this and remain profitable. An additional implication of this research is that managers should prioritize CSR. CSR is not just a tool for less innovative companies to distinguish themselves or firms with low reputations to rehabilitate themselves.

As a society, we are living through unprecedented times concerning how we treat one another in the world. Often, the argument is made that firms should specialize, optimize and be strategically focused. However, highly innovative firms (often regarded as focused, specialized and optimized) in the sample show that paying people more and carrying out CSR is highly compatible with their success.

To the best of the researchers’ collective knowledge, this study is the only one of its kind to create and use such a robust data set, obtaining data from four different sources, namely, 10 years of Forbes top 100 innovative companies, SEC filing of the DEF 14 A for each company for two years, the Kinder, Lyndenberg and Domini database for 10 years and Compustat data for 10 years.

The design and introduction of new pay programs may be particularly challenging for multinational corporations (MNCs) because, given their diverse employee base, they face varied employee expectations regarding pay. We offer a model of how national cultural norms affect employee expectations for, and judgments about, pay fairness. We also describe how firms can best use two international compensation strategies for MNCs (a global integration strategy and a local responsiveness strategy) to optimize employees' justice judgments regarding new pay programs. More favorable justice judgments should improve the chances of new pay program survival and, subsequently, contribute to firm competitiveness.

There have been several new developments in overtime pay within the last decade. The term “overtimepay” was born when congress passed the Fair Labor Standards Act (FLSA) in 1938. All new developments in overtime revolve around this Act. Immediately after this Act was passed, reform measures were underway. The recent issues that surround overtime include: Whom is exempt from overtime pay?; If employers dock employees for partial day absences does that entitle them to overtime pay?; Can employers give compensatory time in lieu of overtime pay?; And is it time to reform the 40‐hour work week?

This chapter describes the spread of new work and pay practices in Danish private sector firms during the last two decades. The data source is two surveys directed at firms and carried out ten years apart. The descriptive analysis shows that large changes in the way work is organised in firms have occurred during both decades, whereas the progression of pay practices predominantly took place in the nineties. There is considerable firm heterogeneity in the frequency of adoption of the practices. In particular, the prevalence of both incentive pay and work practices is higher in multinational companies and firms engaged in exporting.

The purpose of this study is to extend the pay communication literature by examining the relationship between pay secrecy and turnover intentions with the inclusion of mediators. This study further analyzes the influence pay secrecy and organizational trust have on three key employee attitudinal variables that are directly related to turnover intentions.

The data were collected from participants that were recruited using Mechanical Turk, yielding a sample size of 496. Structural equation modeling (SEM) was used to analyze the hypotheses.

Findings demonstrate pay secrecy positively influences turnover intentions. This relationship is double-mediated by organizational trust with organizational cynicism, organizational disidentification, and job embeddedness. All hypotheses were supported.

This research shows that pay secrecy has negative effects on employee attitudes and behaviors. Based on the findings of this study, organizations should take steps toward pay openness to avoid employees becoming distrustful and more cynical of the organization, boost feelings of being embedded, and deter organizational disidentification.

This study contributes to the pay communication literature by further explaining the pay secrecy–turnover intentions relationship with the inclusion of mediators that have shown mixed results or have not been previously analyzed to the researchers' knowledge. Specifically, organizational trust, organizational cynicism, organizational disidentification, and job embeddedness were examined as mediators. Previous research has shown mixed results for the influence pay secrecy has on organizational trust, with some studies demonstrating pay secrecy to have a positive effect and others a negative effect. This study demonstrates support for pay secrecy's negative relationship with organizational trust.

Research on the effect of pay cuts/freezes on employee morale is limited. More importantly, past studies examining this relationship tend to focus on fairness perception as a mediator. This study hypothesizes that work–life conflict also mediates the negative relationship between pay cuts/freezes and employee morale.

A total of 13,139 employees in 1,830 workplaces in Britain in the 2011 Workplace Employment Relations Survey were analyzed.

The analyses confirm the above hypothesis. The results also demonstrate that this mediating mechanism can be mitigated to some extent when work–life balancing practices are available, but much more strongly when they are actually used.

If possible, organizations should provide and encourage employees to use work–life balancing practices when employees' pay needs to be cut or frozen if maintaining employee morale is a concern.

Our study highlights the need to incorporate various theoretical frameworks, and not just the dominant justice/fairness theories, into the study of pay cuts and freezes. The current research demonstrates that the work–life conflict framework can also be applied to understand the relationship between pay cuts/freezes and employee morale.

Despite widespread media attention and growing interest from researchers, pay transparency remains an under-studied field of research and its impact on organizational outcomes like job turnover is not well understood. This study explores the impact of pay transparency on job turnover intentions through the mediating effect of perceived organizational support (POS) and organizational justice.

Data from quantitative surveys conducted with 299 employees at four South African organizations with different pay transparency practices were used to test the conceptual model of pay transparency impacting job turnover intentions through the mediators of POS and organizational justice.

The authors found a weak negative relationship between pay transparency and job turnover intentions and the role of the mediating variables was confirmed. Unexpectedly, the role of the organization emerged as a key variable. Controlling for organization type showed that the direct effect of pay transparency on turnover intentions became insignificant, indicating a stronger effect from organizational factors, of which pay transparency practices are just one.

Identifying a contextual (organizational) dimension to pay transparency practices extends the understanding of this concept and has implications for practice. The study also makes a methodological contribution by demonstrating the value of linking respondent data to a particular organization when researching pay transparency.

This paper aims to explore the complex relationships between intrinsic and extrinsic motivation, pay satisfaction and job satisfaction at the retailer that uses a pay‐for‐performance plan for front‐line employees.

This paper draws on a single organization case study across seven stores, and uses a survey, archival documents, open‐ended questions and researcher interaction with employees and managers.

The results provide some support for the complementary nature of intrinsic and extrinsic motivation. Intrinsic motivation was positively associated with pay and job satisfactions, whereas extrinsic motivation was negatively associated with job satisfaction, and not associated with pay satisfaction. The qualitative insights indicate that pay fairness is important, and those who perceived pay was not fair generally made comparisons with others or felt that pay did not reflect their effort. It is also found that the majority of employees perceived that goals were clear.

The dominance of extrinsic motivation without including behavioural, social, and psychological factors in agency theory research is questioned. The research finds no support for “crowding out”, but rather finds some evidence of “crowding in” where intrinsic motivation is enhanced, to the detriment of extrinsic motivation.

The findings highlight that managers should enhance both intrinsic and extrinsic motivation, and pay employees well to increase job satisfaction.

Few studies examine incentives for front‐line employees, and there is evidence that minimum wage employees can have high intrinsic motivation. Perceptions of pay fairness can vary across motivation levels, age, and gender.