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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 study aims to explore how individual-level and organizational-level factors interact to influence pay information (PI) seeking and PI sharing preferences in PI conversations (i.e. the face-to-face communications context). The authors examine how an individual’s judgment of their pay relative to others – or pay equity perception – affects their PI seeking and PI sharing preferences and how those relationships are affected by organizationally created pay transparency policies and pay transparency practices.

Using a 2 × 2 × 2 experimental design on the MTurk platform, the authors used a scenario-based prompt method to manipulate employee perceptions of pay equity and organizational pay transparency and tested those effects on employee pay disclosure preferences. The authors consider both pay policy and pay practice dimensions of pay transparency and both PI seeking and PI sharing dimensions of pay disclosure preferences. The final sample had 597 participants.

The authors find employees’ pay equity perceptions are negatively related to PI seeking behaviors and are even more so when organizations have restrictive pay transparency policies. Also, both pay transparency policy and pay transparency practice increase PI sharing preferences.

The authors provide insight into how individual perceptions drive pay disclosure motivations and the role of organizational policy and practice in influencing pay disclosure preferences within PI conversations. The authors provide insight into the antecedents that shape pay disclosure preferences, which lead to a both PI conversations among coworkers and an increase in one’s pay understanding. This study shows the contextual nature of PI seeking and PI sharing preferences, which are a motivational antecedent to pay-related sensemaking behaviors.

Conceptually, pay transparency is in its infancy. But it is highly likely to stay – and organisations need to get their head around it before they are caught on the back foot. This study will advise organisations on their approach to total compensation and performance.

This study specifically focused on the following: There are many positives, not least saving time and effort, plus creating synchronicity between expectations from the moment a role is advertised to the moment someone leaves. The difficulty is the current cost of living crisis – for some employees, full pay transparency will show that they are already well paid, whereas others will feel frustrated with their pay, as well as any pay freezes. Transparency also needs to go deeper than the pay itself and should factor total compensation and “life” at the organisation. It needs to show flexible working, supporting employees as people – the employee value proposition.

Pay transparency is harder to unpick and reshape than it is to implement from the start. So, it is more common for start-ups than those with decades of legacy processes across countries, sites, entities or linked, perhaps, to length of service. However, that is out of line with the expectations of many in the modern workforce. Many organisations are being challenged, plus there is a risk that they are seemingly hiding something. There are, too, significant variations between industries, which creates complexities.

This paper is written exclusively for strategic HR review.

With pay transparency (PT) as an emerging trend in organizations around the world and the European Union promoting open pay regulations, PT is of increasing interest to scientists, managers and policymakers. However, it is still unclear what people think about PT and what theoretical perspectives might explain people's views on transparent pay. Therefore, the purpose of this paper is to explore and systematize opinions about PT and to propose theoretical frameworks to understand different reactions to it.

Qualitative reflexive thematic analysis of the Internet debate that emerged in Poland in 2019 in response to the proposition of new law regulations aimed to improve PT by introducing obligatory pay ranges in job offers.

The author's analysis revealed a set of 41 specific and often opposite opinions about PT, which allow for the systematization of hopes and concerns related to PT around the 7 favorable and 6 unfavorable higher-order themes.

The author's results might inform policymakers and managers about the possible risks and benefits of PT implementation. Revealed opposite opinions about PT raise awareness that PT policies, while solving some social problems, might simultaneously create others.

The author provides new insights into opinions that people hold about transparent pay based on real-world data. The author suggests theoretical perspectives for understanding and predicting reactions to PT, such as Hobfoll's Conservation of Resources Theory and Adam`s Equity Theory. Based on this, the authors propose that opposite opinions about PT might be explained by (a) perceived pay dispersion fairness and (b) perceived PT costs-benefits ratio.

This work provides an empirical analysis to determine whether directors’ compensation is lower (“transparency control effect” and “transparency deterrent effect”) or higher (“effects of transparency on increasing competition in pay”) among firms with greater transparency in terms of directors’ compensation.

A disclosure index about board compensation and different models based on linear panel-data regression have been developed, on a sample of 73 Spanish firms for the period 2007–2012.

Our results suggest that disclosure on pay strategy to directors leads to an increase in directors’ compensation, therefore, in this case, the effect of transparency on increasing competition in pay seems to prevail. Conversely, the disclosure on individual directors’ compensation and payment leads to a decrement in directors’ compensation, prevailing the transparency control effect and transparency deterrent effect.

The results of this study might be of interest to investors (to take into account these effects before they implement additional corporate governance reforms) and regulators (to be aware of the importance of this issue).

First, we study the effect that transparency and voluntary disclosure regarding board compensation has on the level of directors’ compensation. Second, in this study we go one step further in the transparency of board compensation disclosures by constructing a disclosure index. Finally, the results contribute to the necessary debate that is currently taking place in the Spanish, European and international context regarding this issue.

The purpose of this paper is to develop a conceptual framework that clarifies the construct of pay secrecy.

Paralleling organizational justice research, two continua of pay information – a distributive continuum about pay raise outcomes and a procedural continuum of pay raise processes – are crossed to produce a 3 × 3 matrix with nine distinct forms of pay communication.

Drawing on the substitutability effect from the organizational justice literature, the matrix highlights the importance of considering how the communication of different types of pay information interact with one another as individuals form pay perceptions.

The matrix framework illustrates that not only information content shapes pay perceptions, but also the extent to which different types of pay information are communicated, and how these different types of information interact. As with any conceptual framework, the current manuscript is limited by a lack of empirical testing.

Managers should be cognizant of the many different ways in which pay information can be communicated. A call is made to reconsider the use of traditionally binary terminology (secret or not) in favor of more accurate descriptions of the nuanced ways in which organizations communicate pay information.

The value of the pay communication matrix lies in the nine unique forms of pay communication arising from the interaction of two different forms of pay information – distributive (outcomes) and procedural (process).

The purpose of this study is to examine whether the performance of the compensation system is better explained by the universalist approach or the contingent approach. The paper also attempts to determine the type of fit that yields the most promising gains in terms of perception of performance.

Data were collected by questionnaire from 602 large organizations in three countries (Canada, France, and the UK), and from this, five hypotheses were formulated and tested using moderated regression analysis.

The study shows that having an optimal relationship among compensation policies (intra‐activity fit) leads to a more efficient compensation system than that obtained following an alignment with business strategies (vertical strategic fit) and with organizational development strategies (internal organizational fit). However, the results suggest that the universalist perspective cannot be rejected.

Human resources managers should exercise prudence regarding the pairing of compensation policies with various organizational characteristics, particularly those related to compensation management policies, because it is the interaction between compensation policies and their management methods that most influences the perception of performance. Of all these management policies, transparency of salary information seems to be central to the contingency perspective.

One of the most interesting contributions of this research is the identification of negative alignments that may result in negative performance. The joint application of two compensation policies, which, individually, have a positive influence on performance, can create a negative interaction. Contingency is therefore not always desirable, and prudence is recommended in the types of alignments introduced.

The purpose of this research is to identify the dimensionality of the procedural justice construct and the criteria used by employees to assess procedural justice, in the context of salary determination.

Based on a survey of 297 Canadian workers, the paper uses confirmatory factor analysis (CFA) to test the dimensionality and the discriminant and convergent validity of our procedural justice construct. Convergent and predictive validity are also tested using hierarchical linear regressions.

The paper shows the multidimensionality of the procedural justice construct: justice of the salary determination process is assessed through the perceived characteristics of allocation procedures, the perceived characteristics of decision‐makers, and system transparency.

Results could be biased towards acceptance; this is discussed. The results also suggest possible extensions to the study.

Knowledge of the justice standards improves the ability of organizations to effectively manage the salary determination process and promote its acceptance among employees. Emphasizes the need to adequately manage the selection, training, and perception of decision makers.

The paper identifies the standards of procedural justice for salary determination processes. It contributes to the theoretical literature by providing a new multidimensional conceptualization, which helps to better understand the psychological process underlying the perception of procedural justice. The presence of a dimension associated with decision makers is novel and critical for compensation studies.

Employee reward is central to contemporary debates about work and employment relations; and in the context of ongoing wage stagnation, benefits represent a growing proportion of total reward value. Past studies have shown that when employees perceive benefits as unfair, this has a negative impact on engagement, performance and retention. Yet no previous studies have explored the components of a benefits system that influence employees’ fairness concerns. Using organisational justice as a theoretical lens, the purpose of this paper is to examine how dimensions of an employee benefits system influence the fairness perceptions of employees.

This paper reports on a qualitative, inductive case study of the benefits system in a large finance and insurance company, drawing on three data sources: interviews with the company’s benefits managers, organisational documents and open-text responses from a benefits survey.

Three dimensions of the benefits system strongly influenced fairness perceptions – constraints on accessing and utilising benefits; prosocial perceptions about the fairness of benefits to third parties; and the transparency of employee benefits.

The study informs organisations and benefits managers about the important role of supervisors in perceived benefits usability, and how benefits may be managed and communicated to enhance employee fairness perceptions.

This study makes a conceptual contribution to the benefits literature through a detailed exploration of the type of organisational justice judgements that employees make about benefits; and identifying for the first time prosocial fairness concerns about the impact of benefits on third parties.

Drawing upon compensating differentials, equity theory, and the psychological contract, women’s voices illustrate how organisational policy dissemination, implementation and change can lead to unintended assignee dissatisfaction with reward. Implications arise for organisational justice which can affect women’s future expatriation decisions. The paper aims to discuss these issues.

A qualitative case study methodology was employed. Reward policies for long-term international assignments (IAs) were analysed. In-depth semi-structured interviews were conducted confidentially with 21 female long-term assignees selected using stratified sampling, and with two managers responsible for international reward policy design/implementation.

Policy transparency is required. Women perceive inequity when allowances based on grade are distorted by family status. Women in dual career/co-working couples expect reward to reflect their expatriate status. Reward inequity is reported linked to specific home/host country transfers. Policy change reducing housing and children’s education are major causes of reward dissatisfaction.

This case study research was cross-sectional and set within one industry. It addressed reward outcomes only for long-term IAs from the perspectives of women who had accepted expatriation in two oil and gas firms.

Reward policy should be transparent. Practitioners might consider the inter-relationship between policy elements depending on grade and accompanied status, location pairings, and the effects of policy content delivery to dual career/co-working couples.

This paper advances the field of IA reward by examining compensating differentials, equity and the psychological contract and takes these forward via implications for organisational justice. It identifies reward elements that support women’s expatriation and address their low share of expatriate roles, thereby fostering gender diversity. Future research themes are presented.