This study draws from the pay-communication and organizational-justice literature to evaluate the effectiveness of manager/employee pay conversations in a large, North-American insurance company. Collecting survey data from 2230 randomly chosen employees across all managerial levels, tenure, and age groups it has been found that pay conversation quality, assessed by measuring the extent which specific, recommended content was addressed, and best-practice recommendations were followed, affects perceptions of procedural and informational justice, controlling for distributive justice. A higher-order composite of the justice dimension was also positively related to the organization’s definition of employee engagement and turnover intentions. The study’s implication for organizational practice, recommendations around effective messaging, as well as existing limitations, are discussed
