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Date Submitted: 07/23/2016 07:51 AM
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 bowl”) policy, leading
to more frequent voluntary turnover in Chinese
firms (Hom et al., 2009)....