The Role of Pay Satisfaction and Organizational Commitment in Turnover Intentions: A Two-Sample Study

This paper reports the results of a two-sample study—a sample of medical reps from pharmaceutical companies (N = 232) and a sample of respondents from multiple organizations (N = 221)—of the relationships between pay satisfaction, organizational commitment, and turnover intentions. Hypotheses were tested using a multidimensional perspective on both pay satisfaction and organizational commitment. Results from both samples show that the effect of pay satisfaction on intended turnover is fully mediated by affective commitment and perceived sacrifice commitment. Pay satisfaction is also significantly related to normative commitment but the latter has no influence on the outcome. Finally, in the sample of medical reps, pay satisfaction significantly reduces commitment based on lack of employment alternatives, a finding that is interpreted in light of the characteristics of pay systems in pharmaceutical companies. Future directions on compensation satisfaction and commitment research are discussed.