The shift to pay transparency: under‐met pay standing expectations and consequences

This research examines the shift from pay secrecy to transparency and seeks improve understanding of previously unrecognized negative consequences on job satisfaction. Drawing undermet expectations research, we propose that shifting toward decreases satisfaction among employees who encounter discrepancies between expected revealed standing (undermet expectations). Using data field experimental studies, tested our hypotheses episodic envy mediates effect this indirect is moderated by victim sensitivity. Study 1 results suggest lead predicted decrease in through envy. In 2, surveyed a technology company before after their found partial support for hypotheses, suggesting effects only those low 3 supported overall model illustrating sensitivity strengthened via an study. We then discuss implications theory practice.