Why do you pay me this way? The effect of pay attributions on employees’ perception of organizational support

Abstract

This study aims to analyze the effect of internal pay attributions on employees’ perceived organizational support (POS). Furthermore, it examines the pathway through which these pay attributions influence POS by analyzing the mediating effect of pay level satisfaction. Based on survey data from 695 employees, the results show that commitment-focused pay attributions are positively and directly related to POS, and also indirectly related to it through the mediated effect of pay level satisfaction. Regarding control-focused pay attributions, while getting the most out of employees’ pay attribution is only directly and negatively related to POS, the cost-reduction HR strategy pay attribution is only indirectly and negatively related to POS through pay level satisfaction. This study is relevant because it provides a more in-depth understanding of how employees’ perceptions of the intentions behind pay decisions can influence how they assess both the organization and the outcomes they receive.