| Practitioners have long speculated on the effects that pay secrecy has on employees and their perceptions of the workplace (Lawler, 1965; Schuster & Colletti, 1973) as sparse empirical research has provided limited insight. This research presents a theoretical framework in which to study Pay Secrecy in the employee-employer relationship. The current study developed and validated a 14-item measure of Organizational Pay Secrecy (OPS), using focus groups, a panel of expert judges, and a large-scale survey of a national sample of employed adults. Sub-facets of the OPS measure included: (a) organizational norms, (b) policies and rules, and (c) enforcement. Confirmatory factor analysis and criterion validity evidence supported the scale. OPS was negatively related to informational justice perceptions, but positively predicted a sub-dimension of procedural justice involving employee voice. OPS was negatively related to trust in management only for employees who had no management responsibilities. Implications for theories of compensation (equity theory, social comparison and procedural justice) are discussed. |
