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Disability status, individual variable pay, and pay satisfaction: Does relational and institutional trust make a difference?

Disability status, individual variable pay, and pay satisfaction: Does relational and institutional trust make a difference?

Shantz, Amanda, Wang, Jing and Malik, Amina (2017) Disability status, individual variable pay, and pay satisfaction: Does relational and institutional trust make a difference? Human Resource Management, 57 (1). pp. 365-380. ISSN 0090-4848 (Print), 1099-050X (Online) (doi:https://doi.org/10.1002/hrm.21845)

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Abstract

Although prior research suggests that disabled employees have different needs in the context of some human resource management (HRM) practices, we know little about their reactions to reward systems. We address this gap in the literature by testing a model using the 2011 British Workplace Employee Relations Survey (disabled employees n=1,251; nondisabled employees n=9,959; workplaces n=1806) and find that disabled employees report lower levels of pay satisfaction than nondisabled employees, and when compensated based on individual performance, the difference in pay satisfaction is larger. We suggest that relational (derived from trust in management) and institutional (derived from firm-wide policies and HRM practices, both intended to provide equitable treatment to disabled employees) forms of trust play important roles. The results of multilevel analyses show that when trust in management is high, the difference in pay satisfaction under variable pay is reduced. We find just the opposite for employees who work in organizations with a formal disability policy but without supportive HRM practices; the gap in pay satisfaction is exacerbated. However, the combination of the presence of a firm-wide policy and HRM practices reduced the difference in pay satisfaction. Implications of the findings for theory, future research, and management practice are discussed.

Item Type: Article
Uncontrolled Keywords: Disability policy; Disability status; HRM practices; Individual variable pay; Institutional trust; Multilevel modelling; Pay satisfaction; Relational trust; Trust in management
Subjects: H Social Sciences > HG Finance
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Centre for Work and Employment Research (CREW) > Leadership & Organisational Behaviour Research Group (LOB)
Faculty of Business > Department of Human Resources & Organisational Behaviour
Last Modified: 05 Sep 2019 01:38
Selected for GREAT 2016: None
Selected for GREAT 2017: GREAT b
Selected for GREAT 2018: None
Selected for GREAT 2019: GREAT 1
URI: http://gala.gre.ac.uk/id/eprint/16107

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