Research on the Impact of Pay Disparities on Employee Turnover Intentions in Cambodian IoT Companies

Xiuyan Xi and Thon Konitha

GBP Proceedings Series, 2025, vol. 14, 197-205

Abstract: This study investigates the impact of pay disparity on employee turnover intentions within Cambodian IoT companies, focusing on Company C as a case study. Conducted in the context of the "Belt and Road" initiative, which has strengthened economic cooperation between China and Cambodia and promoted development in the IoT sector, the research aims to examine how pay disparity influences employee behavior and how pay satisfaction can mitigate the negative consequences of such disparity. The theoretical framework is based on four research hypotheses: (1) internal pay disparity increases employees' turnover intentions, (2) internal pay disparity decreases employees' pay satisfaction, (3) higher pay satisfaction reduces turnover intentions, and (4) pay satisfaction mediates the relationship between pay disparity and turnover intentions. Empirical analysis, carried out through structured questionnaires, tests these hypotheses and yields significant results. Findings indicate that increased pay disparity directly heightens turnover intentions, while pay satisfaction serves as a critical mediator in this relationship. Specifically, employees experiencing lower pay satisfaction are more likely to consider leaving the company, whereas improvements in pay satisfaction substantially reduce turnover intentions. The study concludes that pay satisfaction fully mediates the effect of pay disparity on turnover intentions. From a practical standpoint, the research offers several recommendations for IoT enterprises, including optimizing pay distribution mechanisms, enhancing pay satisfaction, improving internal communication, and addressing employees' professional development needs. Implementing these measures is vital for reducing employee turnover, fostering loyalty, and increasing job satisfaction, which collectively contribute to organizational stability, creativity, and competitiveness. Theoretically, the study contributes by addressing the gap in understanding pay disparity and turnover intentions in Cambodian IoT companies and by enriching the broader literature on pay management. Its findings provide valuable guidance for other industries facing similar challenges, offering practical insights into pay management, employee retention, and workforce stability.

Keywords: pay disparity; employee turnover; pay satisfaction; IoT enterprises; Cambodian economy (search for similar items in EconPapers)
Date: 2025
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