The relationship between perceived pay equity, productivity, and organizational commitment for US professionals of color

Abstract

Purpose The purpose of this paper is to examine: the direct effect of perceived pay equity, the interaction of perceived pay equity and productivity, and the relative effects of perceived internal and external pay equity on organizational commitment (OC) among US scholars of color. Design/methodology/approach The study surveyed 160 professionals. Correlation and hierarchical regression were employed to test the hypotheses. Findings Perceived pay equity directly influenced OC and interacted with scholarly productivity to affect commitment. Highly productive participants who perceived pay equity reported the highest commitment. When pay was seen as inequitable, the most productive scholars reported the lowest commitment. Perceived internal pay equity had an effect, over and above perceived external pay equity on commitment. Research limitations/implications The study was conducted in one industry in the USA, so the results should be generalized cautiously. While, the data were single-source and cross-sectional, the findings were consistent with previous research. Practical implications Findings may be useful for minority scholars’ supervisors since they have knowledge of the productivity and salaries in the department and can provide a detailed explanation for pay differences to enhance pay equity perceptions, particularly for the most productive scholars. Originality/value This study adds to the equity and relative deprivation theory research investigating the effect of perceived pay equity on employee outcomes by examining perceived internal and external pay equity perceptions and productivity on OC. Results suggest that highly productive minority professionals in higher education are particularly sensitive to pay equity.