Date of Conferral
Public Policy and Administration
For over 3 decades, the federal government has attempted to introduce pay-for-performance into the federal workforce. It is important for federal agencies to understand the impact of pay-for-performance, specifically pay banding, on job satisfaction and retention of frontline managers as agencies face the exodus of the retiring Baby Boomer generation. The purpose of this study was to explore the effect of pay banding on job satisfaction and intention of frontline managers to leave the Internal Revenue Service (IRS). The theoretical foundation for this study was Adams's equity theory as viewed through the lens of Mannheim's generational theory. The overarching research question was concerned with whether pay banding effects generational perceptions of job satisfaction and predicts turnover intention. This quantitative study used ANOVA, hierarchical multiple regression, mediation analysis, moderation analysis, and logistic regression to analyze the impact of pay banding on generational perceptions of job satisfaction and turnover intention among IRS frontline managers. The sample was limited to frontline managers of the Department of the Treasury (n = 2,525). Key findings indicated that pay banding was negatively associated with job satisfaction and that pay banded managers were 1.36 times more likely to leave the agency than managers who were not pay banded. Pay banding mediated the relationship between gender and job satisfaction. Positive social changes that may result from governmental policymakers applying the findings of this study are improved retention of highly skilled frontline managers, improved the efficiency and effectiveness of government services, and reduced cost of retraining managers due to attrition. These changes may improve the work environment for employees and improve governmental services provided to the citizenry.