A Policy of Potential Problems: the Buffering Effects of the Perceptions of Pay Secrecy and Cynicism on Workplace Ostracism

With the unstable work environment brought about by high levels of turnover and employee burnout, many firms have sought fresh human capital to fill critical roles. The strain of having to complete job duties in an understaffed environment made remaining employees feel as though they are not being paid enough to do more work for the same pay. However, incoming workers required higher wages to match market demands. Owing to the existence of pay secrecy policies having the potential of making existing workers feel ostracized because elements of seniority, loyalty, and distrust of their employers, a cycle of cynicism and deeper senses of ostracism likely are occurring. With the support of the literature surrounding workplace ostracism, pay secrecy policies, and cynicism, we sampled general workers in the United States (n = 372) to determine if cynicism had the potential to further impact the negative relationship of perceptions of pay secrecy policies and workplace ostracism. Our findings suggest cynicism moderates the proposed relationship at average and high levels indicating that cynicism will buffer feelings of ostracism in an environment where there are negative perceptions of pay secrecy. We discuss how our findings add to the literature through being the first study to explore our hypothesized relationship. Furthermore, we add to understanding of how the aging workforce likely is experiencing cynicism and ostracism associated with pay secrecy policies. Beyond discussing our findings, we give suggestions for future research.