The impact of pay satisfaction and school achievement on high school principals' turnover intentions

In recent years, a principal supply shortage crisis has emerged in the USA. This problem has been exacerbated by an increase in principal departures, which has been found to be negatively related to school outcomes. While research exists on several determinants of principal turnover, any examination of the relationship between principals' affective reaction to pay relative to their intent to leave their position at a particular school is missing from the literature. This research seeks to fill this void by examining the association between California (USA) high school principals' pay satisfaction and turnover intentions (n=156). The importance of potential referent sources (i.e., teachers within the school districts, other high school principals within the school district, and other high school principals in different school districts) for pay satisfaction and the relationship between achievement and turnover intentions were also examined. This study uses a two-stage structural equation modelling approach and finds evidence to suggest that high school principals' pay satisfaction is influenced by the salaries of comparative peers and is negatively associated with principals' intention to turnover. Achievement was not found to be related to turnover intentions. Policy implications and future research recommendations are discussed.