Influence of Salary Disparities on Teaming

Given that teamwork has been associated with both individual and collective benefits among knowledge workers when compared with solitary work and given that pay transparency is increasingly common in contemporary organizations, we examined the ways in which pay disparities among potential teammates appear to influence decisions to collaborate. Contrary to economic theories that would presume people’s sensitivity about their relative salary would predict avoidance of higher paid teammates, we find (in a pre-registered study) that people tend to prefer working with a higher-paid teammate since they tend to expect that they will benefit from such a partnership. We find further that this pattern is moderated when participants are assured that there is no difference in knowledge, skills, abilities, and experiences among potential variably paid teammates. Our findings contribute to a deeper understanding of the mechanisms that influence decisions to collaborate.