Pay‐Level Satisfaction and Employee Outcomes: The Moderating Effect of Employee‐Involvement Climate

Abstract

The present study examined employee-involvement climate (i.e., informationsharing and decision-making climate) as a moderator of the relationship between pay-level satisfaction and employee outcomes (i.e., job satisfaction, affective commitment, and turnover intention). Survey data were collected from 22,662 Belgian employees, representing 134 organizations. The hypotheses derived from distributive justice theory and from research on the meaning of pay received partial support. Multilevel analyses revealed that a decision-making climate buffered the negative effects of low pay-level satisfaction, and that an information-sharing climate exacerbated the negative effects of low pay-level satisfaction. Theoretical and practical implications of this differential moderating effect are discussed.

The Impact of Managerial Support on the Association Between Pay Satisfaction, Continuance and Affective Commitment, and Employee Task Performance

“…According to that, if employees are satisfied with their pay, it may give them a perception that the organization appreciates and recognizes their contributions. By this, the organization satisfies employees' socio-emotional needs (i.e., need for affiliation and recognition), which would result in the employees working for organizational welfare (higher work performance) in exchange (Schreurs et al, 2013).…”

“…But for those employees who are already satisfied with their pay, financial compensation is not the best motivator for enhancing performance. Managers should consider other aspects such as creating a conducive working environment or providing MS (Schreurs et al, 2013).…”

The effects of high‐involvement work systems and shared leadership on team creativity: A multilevel investigation

“…Existing studies stress the importance of an involvement climate and indicate that this will emerge when employees perceive that their organization truly values employee involvement, invests in human capital, and genuinely cares about its employees' well‐being (Riordan, Vandenberg, & Richardson, ; Schreurs, Guenter, Schumacher, Van Emmerik, & Notelaers, ). Involvement climate is characterized by a work environment in which all employees mutually experience that they: (a) possess the power to make decisions; (b) are able to access and share the information that enables them to participate and work effectively within the organization; (c) are provided with training and opportunities to update their knowledge; and (d) are rewarded for improving organizational outcomes by being involved in decision making, information sharing, and training (Lawler, ; Riordan et al, ; Smith, Wallace, Vandenberg, & Mondore, ).…”

Changing Pay Systems in Organizations: Using Behavioral Reasoning Theory to Understand Employee Support for Pay-for-Performance (or Not)

“…Thus, examining additional factors is warranted. For example, it may be helpful to study satisfaction with one’s current pay system as a possible predictor of attitudes toward PFP (Schreurs, Guenter, Schumacher, Van Emmerik, & Notelaers, 2013). Past research suggests that respondents who view their current compensation plan favorably are less likely to support changing to a PFP system (Beckhard & Dyer, 1983).…”