Wage Inequality and Performance in Nonprofit and For‐Profit Organizations

Hamann, Darla J.; Ren, Ting

doi:10.1002/nml.21085

Cited by 4 publications

(3 citation statements)

References 55 publications

(66 reference statements)

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“…It is widely held that the private sector is perceived by nonprofit workers as most effective at paying its employees by nonprofit workers (Cornelius & Corvington, 2012; Hansen, 2014; Rainey & Bozeman, 2000). To the extent that this is true, perceptions of pay inequity will lead to the likelihood that Millennial workers will leave the nonprofit sector (Hamann & Ren, 2013). In general, “internal equity” refers to pay comparisons among employees within the same organization, whereas “external equity” refers to pay comparisons with employees outside the organization (Terpstra & Honoree, 2003).…”

Section: The Millennial Workermentioning

confidence: 99%

Money Talks or Millennials Walk

Johnson

2016

Review of Public Personnel Administration

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The nonprofit sector has become increasingly reliant on paid professional staff and now faces competition from the private and public sectors, which often pay higher to attract and retain workers. Although Millennials are attracted to nonprofit work, there are concerns that they will not remain committed to the nonprofit workforce due to low pay. We analyzed data from the 2011 Young Nonprofit Professionals Network Survey to examine the relationship between pay, perceptions of equitable pay, and sector-switching intentions among Millennial nonprofit workers. Although two thirds of the respondents indicate sector-switching intentions, we found no evidence that Millennial nonprofit workers, who are purported to value extrinsic and materialistic rewards, expressed sector-switching intentions on account of pay. However, pay influences the sector-switching intentions of Millennial nonprofit managers and those with advanced education. Our results suggest that the nonprofit sector may be facing challenges in attracting and retaining Millennial managers because of low pay.

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Section: The Millennial Workermentioning

confidence: 99%

Money Talks or Millennials Walk

Johnson

2016

Review of Public Personnel Administration

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“…in Hamann and Ren's (2013) analysis of private and nonprofit care homes). This seems to be linked to the intrinsic motivation of those attracted to working in this sector (Leete, 2000).…”

Section: Theories Of Wage Settingmentioning

confidence: 99%

“…Other research has looked at the notion of fairness in setting of wages, and the effects of different levels of inequality – with more narrow bands of equality more typically found in the non-profit sector (e.g. in Hamann and Ren's (2013) analysis of private and non-profit care homes). This seems to be linked to the intrinsic motivation of those attracted to working in this sector (Leete, 2000).…”

Section: Research Questionsmentioning

confidence: 99%