Workgroup Salary Dispersion and Turnover Intention in China: A Contingent Examination of Individual Differences and the Dual Deprivation Path Explanation

Abstract

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.