The Implications of an Across-the-Board Salary Increase
Format of Original
Research in Higher Education
The implications of an across-the-board salary increase for selected outcomes are assessed. While such an approach to employee compensation is easily administered, the results of this analysis suggest that such an approach has some long-run costs. Those perceiving themselves as high performers and as putting forth greater effort felt undercompensated. Those with feelings of being undercompensated, relative to those feeling equitably compensated, anticipated a reduction in their job performance during the coming year, and perceived a deterioration in the association between performance and compensation. Differences in intentions to search for alternative employment are statistically significant.