Pay openness movement: Is it merited? Does it influence more desirable employee outcomes than pay secrecy?

ABSTRACT

Organizations are currently moving toward increased pay openness in the workplace; thus, it is important to determine the influence pay communication practices (pay secrecy and pay openness) have on employee outcomes and whether the increase in pay openness is merited and more beneficial for organizations. The purpose of this article is to analyze pay communication’s influence on workplace deviance and organizational citizenship behaviors (OCBs). Specifically, pay secrecy practices are hypothesized to influence employees to engage in less OCBs and more workplace deviance. Informational justice and distributive justice perceptions are included as mediators. Pay secrecy leads to greater workplace deviance as well as less OCBs and justice perceptions and thus, inferring the pay openness movement is merited. A Pay Communication scale was developed and validated for this study. Practical implications, limitations, and future research directions are provided.

KEYWORDS:

• pay communication
• pay secrecy
• pay openness
• workplace deviance
• organizational citizenship behaviors
• informational justice
• distributive justice