Reactions to merit pay increases: A longitudinal test of a signal sensitivity perspective

Jason D. Shaw, Michelle K. Duffy, Atul Mitra, Daniel E. Lockhart, Matthew Bowler

Research output: Contribution to journalReview articlepeer-review

30 Scopus citations

Abstract

The relationships among merit pay raises, trait positive affectivity (PA), and reactions to merit pay increases (pay attitudes and behavioral intentions) were explored in a longitudinal study of hospital employees. Drawing on signal sensitivity theory, the authors expected that PA would moderate the relationship between merit pay raise size and reactions to the increase such that pay raise size would be more strongly related to pay attitudes and behavioral intentions among those low in PA. Results strongly supported the predictions in the case of reactions to the raise amount (happiness and effort intentions) but not for pay level satisfaction. Implications of the results and directions for future research are identified.

Original languageEnglish (US)
Pages (from-to)538-544
Number of pages7
JournalJournal of Applied Psychology
Volume88
Issue number3
DOIs
StatePublished - Jun 2003

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