Public organizations worldwide are increasingly expected to perform more effectively at a lower cost. Austerity measures are thus taken, affecting the wellbeing of hundreds and thousands of employees. By utilizing the 6th European Working Conditions Survey (EWCS) completed by 10,112 public employees, we investigate in this study the contingencies that affect the relationships among longer work hours, reduced pay, and work motivation. We found that austerity-oriented human resources practices not only diminish the motivation of public sector workers, they also (1) differentially affect these workers in various hierarchical positions and (2) can be counteracted by perceived openness of communication. This study will serve as a timely reminder that public organizations experiencing cutbacks are able to significantly lessen the frustration of their workforce by taking certain essential organizational factors into account.