A test of individual local pay-status value and its relationship to attitudes of commitment, pay satisfaction, turnover intention, and attachment

The purpose of this research was to test psychological correlates and modifiers of perceived salary administration inequity in organizations. The general assumption is that the pursuit of external equity in salary administration can lead to the internal equity problems evidenced by salary compression and perceived unfairness of salary administration. Specific to this study is the circumstance where these problems cause a perception of pay status inequity within a local work unit.; This research supports the notion that movement in relative position causes changes in job related attitudes of commitment, general affect, pay satisfaction, or job satisfaction. Attitudes of turnover intention and attachment were also tested, but insignificant research findings were revealed.; This study develops a framework behind the importance people attach to their place in a local status hierarchy. Research has theorized that local status matters to individuals in the workplace but few empirical studies have attempted to develop and test a model of local pay status value while correlating changes to attitudinal outcomes. This study fills that hole. It was revealed that status does matter in the workplace. Modifiers of attitudinal outcomes were need for power, pay valence, local unit size, and age.