Pay information and employees’ perception of organizational support: the mediating role of pay satisfaction

Abstract

Purpose – Pay communication policies continue to garner attention in human resource management. This article draws on social exchange theory to examine the consequences of different types of pay information on employees’ perceived organizational support (POS). Similarly, it draws on the relational model to examine whether pay level satisfaction and satisfaction with variable pay and pay raise procedures mediate the relationships between the different types of pay information and employee POS. Design/methodology/approach – The hypothesized model was tested using structural equation modeling in a sample of 695 employees of Spanish firms. Findings – The five types of pay information considered in this study did not have a direct effect on employee POS. Furthermore, distributive base pay information and distributive base pay information on other employees in the firm and in the industry had an indirect influence on POS through the multiple mediating effect of pay comparison and pay level satisfaction. Finally, procedural variable pay and procedural pay raise information were indirectly related to employee POS through satisfaction with pay procedures. Originality/value – This study highlights the importance of considering the type of pay information provided to employees and the need to understand the mediating variables that explain how each type of pay information can influence employees’ POS.