Employment demographics and attitudes that predict preferences for alternative pay increase policies

A survey of 942 university staff employees shows that performance and cost of living are preferred over seniority as criteria upon which to base pay increases. Multiple regression analysis reveals that preferences for performance-based pay increases are most strongly related to perceptions that merit pay does not decrease co-worker cooperation, perceptions that performance differences exist among co-workers, employment in white collar jobs, and never having belonged to a union. Preferences for seniority-based and cost of living-based pay increases are most strongly related to the perceived need for a union, perceptions that merit pay reduces cooperation, education level, and gender. In addition, preferences for seniority-based pay increases are related to years of service.An earlier version of this paper was presented at the 1989 meetings of the Midwest Academy of Management.