The highest level of satisfaction is thought to be associated with pay equity, while pay inequity, specifically underpayment, results in lower levels of satisfaction and negative outcomes such as increased absences and turnover. Determining whether an employee's pay is equitable is difficulty for both managers and researchers. This paper will investigate one method of making this determination and whether pay equity is represented by a pay range. Also investigated is whether an equitably paid employee and an underpaid employee differ as to their satisfaction and aspirations for changes in pay. The results of this study should be of interest to both the manager and researcher.



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