PAY SYSTEM CHARACTERISTICS AND QUIT PATTERNS OF GOOD, AVERAGE, AND POOR PERFORMERS

The relationship between pay dispersion and the quits patterns of good, average, and poor performers was explored among a sample of motor carriers. Results showed that under high pay system communication, pay dispersion was negatively related to good performer quits when performance-based pay increases were emphasized, and positively related when they were not. The results for seniority-based pay increases were different. Under high pay system communication, pay dispersion was negatively related to average performer quits when seniority-based pay increases were emphasized, and the relationship was attenuated when they were not. Contrary to expectation, pay dispersion was not consistently related to quit patterns when pay system communication was low. Predictions regarding quit patterns of poor performers were not supported. Implications of the research are addressed and future research directions identified.