Pay procedures and voluntary turnover: Does procedural justice matter?

Using a stratified sample of 506 occupationally heterogenous employees of a large County government in the United States, this study assessed the extent to which the perceived fairness of pay procedures are related to voluntary turnover. Controlling for the effects of demographic characteristics and distributive justice, the perceived fairness of procedures for pay determination, performance appraisal and appeals were related to voluntary turnover. Over-all, the results indicate that pay procedures are valued for their utility in predicting future pay decisions by the organization. The perceived fairness of pay-related procedures were also better predictors of which individuals will remain employed with the organization than of the individuals who will leave the organization.