Gender differences in the attitudes toward cutting people vs pay

Purpose - The current research investigates the gender difference in the attitudes of current employees and job seekers (or “future” employees) to payroll cost reduction methods (downsizing vs cutting pay). Design/methodology/approach - Two studies were conducted. In Study 1, we analyzed a secondary dataset (survey data) of 2,139 employees in Ireland. In Study 2, we conducted an online experiment on 384 people in the US. Findings - Study 1 reveals that, for males, downsizing survivors' commitment and job satisfaction levels are higher than those of employees whose pay is cut. In contrast, there were no differences in the commitment and job satisfaction levels between survivors of downsizing and pay-reduced employees for females. The analysis in Study 2 indicates that females are more attracted to organizations that utilize pay cuts over downsizing to overcome financial difficulties. In contrast, males demonstrated no differences in job-seeker attraction outcomes to organizations that chose either of these two payroll cost reduction methods. Thus, the results of the two studies indicate that females, compared to males, form less negative (or more favorable) attitudes toward pay cuts over downsizing. Practical implications - The findings urge organizations to consider gender differences and develop relevant mitigation plans when one method must be chosen to reduce payroll costs. Originality/value - The outcomes of this research indicate that the selection of a payroll cost reduction method may lead to a disparate impact on gender composition in an organization.