Wage Inequality and Worker Turnover Intention

Summary

The research paper "Wage Inequality and Worker Turnover Intention" by John-Eke and Zeb-Obipi (2023) delves into the critical relationship between disparities in employee compensation and the likelihood of workers intending to leave their jobs. The study establishes that wage inequality, defined by both pay disparity and discriminatory promotion practices, is a significant predictor of employee turnover intention. Worker turnover intention is, in turn, measured through indicators such as employee absenteeism and active job searching behaviors. Methodologically, this paper is designed as a theoretical review, constructing a conceptual framework to detail the nature and direction of the relationship between the identified variables. It synthesizes existing literature to build a comprehensive understanding rather than collecting new empirical data. Through this extensive literature review, the authors reveal a consistent positive correlation between wage inequality and the intention of workers to leave an organization. Specifically, all components of wage inequality—pay disparity and discriminatory promotion—were found to be positively correlated with the measures of worker turnover intention, namely employee absenteeism and job search. The implications of these findings are substantial for organizational management and human capital strategies. The study unequivocally concludes that wage inequality plays a significant role in predicting worker turnover intention, emphasizing the detrimental effects of unfair compensation practices on employee retention. Consequently, the authors strongly recommend that organizations prioritize fairness and equality in their wage and promotion administration. They advise against any form of pay discrimination or disparity and advocate for promotion decisions to be strictly based on performance and merit, rather than extraneous factors like race, gender, ethnicity, religion, or political affiliation. Implementing such equitable practices is crucial for fostering a motivated workforce and sustaining workplace productivity by mitigating employees' desires to seek opportunities elsewhere.