Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You and Your Team.

Learn More →

Employees' preferences for the bases of pay differentials

Employees' preferences for the bases of pay differentials Purpose – The aim of this study was to investigate whether perceptions of fair pay are characterised by social norms about the appropriate bases of pay differentials. Design/methodology/approach – In order that the employees could voice their opinions without the restrictions of pre‐coded categories individual interviews were carried out with employees from five private sector organizations. The design of the study allowed an examination of attitudes towards pay criteria in the context of changes in organizational pay structures towards more individualism in pay awards. Findings – The most popular bases of pay were “responsibility”, “qualifications” and “performance”. The attitudes appeared to reflect widespread norms about the most appropriate bases of pay. There was some evidence for an interaction between employee attitudes towards pay determination and organizational characteristics on the design and implementation of pay policies. Research limitations/implications – The interview methodology restricted the size of the sample and consequently the generalisations that can be made from the findings. Future research could use qualitative or quantitative methods to check whether the findings replicate with different types of groups of employees. Practical implications – The paper contains useful information for human resource practitioners about maintaining “felt fairness” in the design of new pay systems. Originality/value – The qualitative approach of this study produces rich information about employee perceptions of pay differentials in the context of current changes towards more individualised pay determination. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Employee Relations: An International Journal Emerald Publishing

Employees' preferences for the bases of pay differentials

Loading next page...
 
/lp/emerald-publishing/employees-preferences-for-the-bases-of-pay-differentials-WBvhh0B8zs
Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
0142-5455
DOI
10.1108/01425450610639383
Publisher site
See Article on Publisher Site

Abstract

Purpose – The aim of this study was to investigate whether perceptions of fair pay are characterised by social norms about the appropriate bases of pay differentials. Design/methodology/approach – In order that the employees could voice their opinions without the restrictions of pre‐coded categories individual interviews were carried out with employees from five private sector organizations. The design of the study allowed an examination of attitudes towards pay criteria in the context of changes in organizational pay structures towards more individualism in pay awards. Findings – The most popular bases of pay were “responsibility”, “qualifications” and “performance”. The attitudes appeared to reflect widespread norms about the most appropriate bases of pay. There was some evidence for an interaction between employee attitudes towards pay determination and organizational characteristics on the design and implementation of pay policies. Research limitations/implications – The interview methodology restricted the size of the sample and consequently the generalisations that can be made from the findings. Future research could use qualitative or quantitative methods to check whether the findings replicate with different types of groups of employees. Practical implications – The paper contains useful information for human resource practitioners about maintaining “felt fairness” in the design of new pay systems. Originality/value – The qualitative approach of this study produces rich information about employee perceptions of pay differentials in the context of current changes towards more individualised pay determination.

Journal

Employee Relations: An International JournalEmerald Publishing

Published: Mar 1, 2006

Keywords: Pay structures; Pay differentials; Employee attitudes; Social norms; Performance related pay

References