Pay transparency, job turnover intentions and the mediating role of perceived organizational support and organizational justice

Purpose: Despite widespread media attention and growing interest from researchers, pay transparency remains an under-studied field of research and its impact on organizational outcomes like job turnover is not well understood. This study explores the impact of pay transparency on job turnover intentions through the mediating effect of perceived organizational support (POS) and organizational justice. Design/methodology/approach: Data from quantitative surveys conducted with 299 employees at four South African organizations with different pay transparency practices were used to test the conceptual model of pay transparency impacting job turnover intentions through the mediators of POS and organizational justice. Findings: The authors found a weak negative relationship between pay transparency and job turnover intentions and the role of the mediating variables was confirmed. Unexpectedly, the role of the organization emerged as a key variable. Controlling for organization type showed that the direct effect of pay transparency on turnover intentions became insignificant, indicating a stronger effect from organizational factors, of which pay transparency practices are just one. Originality/value: Identifying a contextual (organizational) dimension to pay transparency practices extends the understanding of this concept and has implications for practice. The study also makes a methodological contribution by demonstrating the value of linking respondent data to a particular organization when researching pay transparency.