The impact of pay understanding on pay satisfaction and retention: Salary sacrifice understanding in the not-for-profit sector

Abstract

This article examines the impact of employee understanding of components of their pay system on pay satisfaction and leaving intentions for a poorly paid occupational group. Employee understanding of pay arrangements is found to have an indirect impact (through pay satisfaction) on employee intention to leave. Based on this sample, organisations may be able to improve the pay satisfaction of their employees and reduce employee turnover intention simply by improving their pay communication approaches.