Can idiosyncratic deals promote perceptions of competitive climate, felt ostracism, and turnover?

Abstract

Idiosyncratic deals (or i-deals) have been advocated as effective tools for promoting job motivation and productivity in the workplace. However, they do have some downsides that have not been adequately addressed. This study argues that developmental i-deals (e.g., special training opportunities) may have negative social consequences that lead to turnover, especially for young, educated employees who are sensitive to the presence or absence of special resources that help advance their career development. Data were collected from 190 college-educated employees at five points in time over 18months. The results show that receiving developmental i-deals and witnessing coworkers' developmental i-deals were related to being envied and to envy, respectively. Further, the receiving and witnessing of developmental i-deals were found to have an interactive effect on these feelings. Being envied and envy promote the perception of a more competitive climate, which in turn was related to greater felt ostracism. Felt ostracism was found to be related to greater voluntary turnover. This study thus has gathered initial evidence that developmental i-deals might have negative social effects on young, educated employees.