Workplace financial transparency and Job distress

Abstract

Social scientists have long been interested in questions of organizational culpability, workers’ rights, and workplace equity. This study focuses on a particularly important aspect of managerial practice—financial transparency—and its implications for job-related distress. Drawing on 2011 British Workplace Employment Relations Survey data, we interrogate the transparency-distress relationship and whether it is mediated or moderated by other organizational dynamics, such as managerial relations. Our hierarchical analyses of nearly 20,000 workers across over 2,000 workplace establishments reveal that managerial communication and trust surrounding organizational financial transparency reduces job distress—an ameliorating effect that is both markedly robust and stronger in firms with limited collective bargaining coverage. Positive supervisory appraisals serve as a major mechanism underlying this relationship, with job security and organizational commitment playing a more moderate role. We conclude by highlighting our core findings in these regards and especially the centrality of social-interactional factors above and beyond monetary considerations.