Prior studies have shown that pay secrecy may yield inconsistent effects on relationship conflicts in the workplace. However, limited research examines the potential boundary condition underlying the relationship between pay secrecy and coworker relationship conflicts. Drawing from uncertainty management theory, we propose a two-way interaction effect of pay secrecy (i.e., environmental uncertainty) and self-esteem (i.e., self-uncertainty) on relationship conflicts and further on employee withdrawal, including interaction avoidance and silence. Incorporating social comparison theory, we further propose a three-way interaction among pay secrecy, self-esteem, and pay information exchange preference on relationship conflicts and employee withdrawal. To test our research model, we conducted a three-wave study with UK employees (N = 308) and a two-wave field study with Chinese employees (N = 456). Results reveal that the two-way and three-way interaction effects are significant in predicting relationship conflicts and further interaction avoidance and silence. We suggest that pay secrecy has a positive effect on employee withdrawal through relationship conflict only when self-esteem is low and pay information exchange preference is high. Theoretical and managerial implications are discussed.
