Pay Dispersion Research: A Critical Review and Prospects

Yuhan Cao

doi:10.54097/hv7zqw53

Authors

Yuhan Cao

DOI:

https://doi.org/10.54097/hv7zqw53

Keywords:

Pay dispersion, Compensation structure, Organizational justice, Motivation, Equity theory

Abstract

As a pivotal yet contentious mechanism influencing organizational innovation, pay gap dynamics present significant complexity in contemporary innovation-driven economies. While extant research has examined pay dispersion effects from multiple perspectives, prior studies predominantly adopt a unidimensional approach - focusing either on motivational benefits or detrimental consequences - while neglecting nuanced multilevel variations and differential impacts across employee groups. Through systematic literature synthesis, this study elucidates the critical equilibrium between individual pay satisfaction and enterprise-wide performance enhancement, revealing pay gaps' dual role as both incentive catalysts and potential disruptors. Our analysis underscores the imperative for strategic precision in pay gap implementation to optimize the balance between equity preservation and innovation stimulation.

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