Follo .....ing up on leads in the business literature, this study analyzes whether younger managers and professionals in state and local government are less loyal than their senior colleagues, and ifso, whether merit pay can reverse the trend. Thequasi-experimental research design testedfor variation in organizational commitment that could be attributed to (1) age, (2) pay procedure, and (J) pay level. The experimental group received pay raises in merit increments, while the control group obtained salary increases in some other way. Correlation analysis revealed weak, but statistically significant effects ofage, merit pay, and salary on the respondents' loyalty scores, with one unexpected exception. Pay co-varied relatively strongly with the organizational commitment ofolder respondents in the experimental group.
THE ISSUEThe issues of retention, work commitment, and organizational loyalty have occupied administrators in the public and private sectors since Taylor's scientific management in the 1920s and motivation research in the 1930s. Over the years many factors have seemed to influence the decision of an employee to change employers. They range from a basic concern for higher pay to a general search for more meaningful work (Mowday et aI., 1982;Mobley, 1982). Exit may also result when the employee's voice is being ignored (Hirschman, 1970;Farrell, 1983;Farrell and Rusbult, 1985).Recent books and articles on corporate management have pointed out a new problem, a noticeable decline in work loyalty among key managers and professionals from the baby boom generation. The lack of allegiance manifests itself in higher turnover rates on the one hand, and a higher percentage of refusals to accept company-decreed transfers on the other hand. As one solution, the writers propose pay plans based on perfor-