After controlling for personal, job and firm characteristics, it is found that several HRM
practices raise workers’ overall job satisfaction and their satisfaction with pay. However, these effects
are only significant for non-union members. Satisfaction with pay is higher where performance-related
pay and seniority-based reward systems are in place. A pay structure that is perceived to be unequal is
associated with a substantial reduction in both non-union members’ overall job satisfaction and their
satisfaction with pay. Although HRM practices can raise workers’ job satisfaction, if workplace pay
inequality widens as a consequence then non-union members may experience reduced job satisfaction.