Featured Research

from universities, journals, and other organizations

Secret salaries hurt worker performance, increase top-talent turnover

Date:
February 26, 2014
Source:
Cornell University
Summary:
Pay secrecy can hurt employee performance and prompt top talent to look for new jobs. High-performing workers are more sensitive than others when they perceive no link between performance and pay, suggesting that pay secrecy may hinder a firm’s ability to retain top talent. Pay secrecy also can lead to negative behavioral consequences, such as decreased performance and increased turnover.

If salaries in your workplace are secret, there’s more at stake than the frustration of thinking coworkers who produce less than you might be getting paid more.

Related Articles


Research by Elena Belogolovsky, assistant professor of human resource studies in Cornell University’s ILR School, indicates that pay secrecy might also hurt your work performance and prompt top talent to look for new jobs.

In a paper published online in January by the Academy of Management Journal, Belogolovsky and Tel Aviv University Professor Peter Bamberger explain why a lack of transparency about pay hurts an individual’s performance.

“Signaling in Secret: Pay for Performance and the Incentive and Sorting Effects of Pay Secrecy,” concludes that secret payrolls weaken employee perception that a performance increase will be accompanied by a pay increase.

Moreover, high-performing workers are more sensitive than others when they perceive no link between performance and pay, suggesting that pay secrecy may hinder a firm’s ability to retain top talent.

Pay secrecy also can lead to negative behavioral consequences, such as decreased performance and increased turnover.

Belogolovsky and Bamberger found that subtle “signals” in the way human resources policies are communicated and put into practice can influence employees’ perception of workplace uncertainty and inequity, leading to poorer performance and higher turnover.


Story Source:

The above story is based on materials provided by Cornell University. The original article was written by Mary Catt. Note: Materials may be edited for content and length.


Journal Reference:

  1. E. Belogolovsky, P. Bamberger. SIGNALING IN SECRET: PAY FOR PERFORMANCE AND THE INCENTIVE AND SORTING EFFECTS OF PAY SECRECY. Academy of Management Journal, 2014; DOI: 10.5465/amj.2012.0937

Cite This Page:

Cornell University. "Secret salaries hurt worker performance, increase top-talent turnover." ScienceDaily. ScienceDaily, 26 February 2014. <www.sciencedaily.com/releases/2014/02/140226125241.htm>.
Cornell University. (2014, February 26). Secret salaries hurt worker performance, increase top-talent turnover. ScienceDaily. Retrieved March 2, 2015 from www.sciencedaily.com/releases/2014/02/140226125241.htm
Cornell University. "Secret salaries hurt worker performance, increase top-talent turnover." ScienceDaily. www.sciencedaily.com/releases/2014/02/140226125241.htm (accessed March 2, 2015).

Share This


More From ScienceDaily



More Science & Society News

Monday, March 2, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Doctors Often Give In To Vaccine-Wary Parents

Doctors Often Give In To Vaccine-Wary Parents

Newsy (Mar. 2, 2015) A new survey published in the journal Pediatrics found many doctors are giving in to parents&apos; requests to delay vaccinating their children. Video provided by Newsy
Powered by NewsLook.com
Nurse Who Survived Ebola Virus to File Lawsuit

Nurse Who Survived Ebola Virus to File Lawsuit

AP (Mar. 2, 2015) A lawyer for Nina Pham, the 26-year old nurse who survived after contracted the Ebola virus, says the young woman&apos;s &apos;life has changed forever. &apos; Pham is preparing to file a lawsuit against Texas Health Resources for negligence. (March 2) Video provided by AP
Powered by NewsLook.com
Mobile World Looks to 5G

Mobile World Looks to 5G

Reuters - Business Video Online (Mar. 2, 2015) The wireless industry&apos;s annual conference gets underway in Barcelona with 85,000 executives taking part and numerous new smartphones and watches being launched. As Ivor Bennett reports from the show the race for 5G is one of the key themes. Video provided by Reuters
Powered by NewsLook.com
Texas Nurse Suing Hospital Where She Contracted Ebola

Texas Nurse Suing Hospital Where She Contracted Ebola

Newsy (Mar. 1, 2015) In an exclusive interview, The Dallas Morning News reports nurse Nina Pham is now suing Texas Health Presbyterian after contracting Ebola. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins