107 - THE IMPACT OF PAY TRANSPARENCY ON PERCEIVED ORGANISATIONAL JUSTICE AND RETENTION INTENTIONS AMONG FINANCE PROFESSIONALS IN SOUTH AFRICA

Session: D01S017 - Workplace Justice
AUTHORS:
Mabaso Calvin (University of Johannesburg ~ Johannesburg ~ South Africa)
Abstract text:
Pay transparency has become an increasingly relevant construct in organisational psychology, particularly as organisations seek to enhance fairness, trust, and retention. This quantitative study investigates the effect of pay transparency on employees' perceptions of organisational justice specifically distributive, procedural, and interactional justice within the finance sector in South Africa. Organisational justice is widely recognised as a critical predictor of employee outcomes such as job satisfaction, organisational commitment, and turnover intention, especially in high-performance sectors like finance where compensation practices are closely scrutinised. Grounded in Equity Theory and Organisational Justice Theory, the study employed a structured survey administered to 365 employees across banks, investment firms, insurance companies, and fintech organisations. The survey instrument measured perceived pay transparency, the three dimensions of organisational justice, and behavioural outcomes such as job satisfaction and intention to stay. Structural Equation Modeling (SEM) was used to analyse the data and test the hypothesised relationships between constructs. Results from the SEM analysis revealed that perceived pay transparency significantly and positively influences procedural and interactional justice, with a moderate effect on distributive justice. In turn, all three justice dimensions were positively associated with job satisfaction and organisational commitment, and negatively associated with turnover intention. The structural model demonstrated good fit indices, validating the theoretical framework and supporting the proposed relationships. The findings suggest that transparent pay practices—when clearly communicated and fairly implemented can enhance perceptions of fairness, strengthen psychological attachment to the organisation, and reduce the risk of attrition. The study provides evidence-based insights for HR and compensation professionals in the finance sector, emphasising the strategic importance of pay transparency in fostering an equitable and high-trust organisational culture. These insights are particularly valuable in an era where employee expectations around fairness and accountability are more prominent than ever.