The Feasible Linkage between Pay Dispersion and Job Performance in the Case of U.S. Retail Sales Workers

Purpose: This study seeks to address the omission through examining the manner in which demographic similarity affects the responses of employees in the retail sector towards horizontal pay dispersion. Through doing so the study will be effective in bolstering the recent efforts of more careful exploration of conditions. Research design, data, and methodology: Scant past studies are available to guide for practitioners in retail sector which compensation strategy might lead adequate job performance for retail sales workers. To suggest possible solution, the present authors used variables of pay dispersion and obtained 317 US retail sale workers in distribution channels to measure the association between pay dispersion and employee job performance. Results: The statistical findings indicated both first and second hypothesis could be acceptable with favorable Beta and T values, resulting high degree of pay dispersion leads a low level of job performance, while a low degree of pay dispersion can motivate retail sales workers to improve their performance. Conclusions: The findings of this study raises an argument that processes of social comparison work in a more vigorous manner. This is thus a representation of the propensity of a retail sales worker to voluntarily resign from an organization when dispersion rates are higher.