Reactions to merit pay increases: a longitudinal test of a signal sensitivity perspective.
The relationships among merit pay raises, trait positive affectivity (PA), and reactions to merit pay increases (pay attitudes and behavioral intentions) were explored in a longitudinal study of hospital employees. Drawing on signal sensitivity theory, the authors expected that PA would moderate the relationship between merit pay raise size and reactions to the increase such that pay raise size would be more strongly related to pay attitudes and behavioral intentions among those low in PA. Results strongly supported the predictions in the case of reactions to the raise amount (happiness and effort intentions) but not for pay level satisfaction. Implications of the results and directions for future research are identified.
Shaw
Jason D
JD
Gatton College of Business and Economics, School of Management, University of Kentucky, Lexington 40506-0034, USA. jdshaw@uky.edu
Duffy
Michelle K
MK
Mitra
Atul
A
Lockhart
Daniel E
DE
Bowler
Matthew
M
D000328:Adult; D004650:Employee Performance Appraisal / Q000191:economics*; D004651:Employment / Q000191:economics*; D005260:Female; D006801:Humans; D007588:Job Satisfaction; D008137:Longitudinal Studies; D008297:Male; D012456:Salaries and Fringe Benefits / Q000191:economics*