The move to wage transparency: falling short of enduring wage expectations and outcomes

First published: October 19, 2021 https://doi.org/10.1002/job.2575

Commentary

This study investigated transparency about wages and its previously unrecognized negative impact on job satisfaction.

Using an investigation of undermet expectations, we hypothesize that a shift in wage transparency will result in lower job satisfaction for employees who encounter a negative discrepancy between expectations and revealed pay standing (undermet pay standing expectations). Using data from field and experimental studies, we tested the hypothesis that temporary envy mediates the effect of undermet pay-standing expectations on job satisfaction, and that this indirect effect is moderated by victimization sensitivity.

The results of Study 1 suggest that unmet wage level expectations lead to lower job satisfaction through temporary jealousy.

In Study 2, employees of technology companies were surveyed before and after the transition to transparency payments, and the hypothesis was found to be partially supported. It posits that temporary jealousy mediates the negative impact on job satisfaction of not meeting wage level expectations only for those with low victim sensitivity.

Study 3 supported our overall model by showing that in experimental studies, low victim sensitivity reinforces the negative indirect effects of underpayment expectations on job satisfaction through temporary jealousy.