The Impact of Pay Equity on Organisational Resilience
Keywords:
Organizational Resilience; Pay Equity; Internal Employee Pay Gap; External Employee Pay Gap; Market Competition.Abstract
In recent years, natural disasters, geopolitics, trade disputes and many other emergencies have posed great challenges to the survival and development of enterprises. All the activities of business management are facing greater uncertainty than ever before. In order to enable enterprises to better survive and develop in the VUCA era, how to improve organizational resilience has become a key concern of enterprises. Employees, as the core force of the organization, have a certain impact on the enhancement of organizational resilience. Therefore, this paper divides employee pay equity into internal and external aspects, i.e., internal employee pay gap as well as external employee pay gap, and studies the relationship between employee pay equity and organizational resilience through quantitative methods. This paper selects the data of listed non-financial companies in China from 2019-2021 as the research sample, and introduces market competition as a moderator for further research. It is found that: internal employee pay gap can significantly improve organizational resilience; external employee pay gap can significantly improve organizational resilience; market competition positively regulates the relationship between internal employee pay gap and organizational resilience; and market competition positively regulates the relationship between external employee pay gap and organizational resilience. The above findings broaden the research perspective of organizational resilience and provide useful insights on how managers can optimize the current remuneration system to improve the level of organizational resilience.
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