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Workgroup Salary Dispersion and Turnover Intention in China

In:

Submitted By xiezheheng
Words 13716
Pages 55
WORKGROUP SALARY DISPERSION
AND TURNOVER INTENTION
IN CHINA: A CONTINGENT
EXAMINATION OF INDIVIDUAL
DIFFERENCES AND THE DUAL
DEPRIVATION PATH EXPLANATION
W E I H E , L I - R O N G L O N G , A N D B Å R D K U VA A S
The present study generalizes previous pay dispersion research to the Chinese context by examining the cross-level relationship between workgroup salary dispersion and employee turnover intention contingent on individual differences.
Field survey data including annual objective salary and self-reported attitudes among 370 Chinese employees in 51 organizational workgroups supported our cultural predictions by showing that the relationship between workgroup salary dispersion and turnover intention was positive only among employees with higher rather than lower levels of Chinese traditionality and among those with lower rather than higher salary levels. Furthermore, the results of mediated moderation analyses suggest that a dual-deprivation path model can explain the above relationships. We discuss the theoretical, cultural, and practical implications of these findings for organizations. © 2015 Wiley Periodicals, Inc.

Keywords: salary dispersion, Chinese traditionality, turnover intention

Introduction

E

mployee turnover is a challenge for organizations and managers not only because of the decreased firm performance followed by the loss of talent, but also due to the expensive replacement cost associated with hiring, selecting, and training the alternatives
(Allen, Bryant, & Vardaman, 2010). The problem of voluntary turnover is particularly serious in transitional China, where significant changes in employee-organization relationships (EORs) are

taking place as a result of economic reforms (Tsui,
2006). One of the significant changes is the abolition of the guaranteed lifelong employment (also known as the “iron rice

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