Work

The Interplay of Fairness and Performance-Based Pay: Insights into Employee Compensation Satisfaction

Year: 2024

Type: article

Abstract: This study examines the relationships between performance-based compensation, internal salary fairness, procedural fairness in pay determination, external pay fairness, and employee satisfaction with compensation, using a structural equation model. Data was collected from employees working in state-owned and small-to-medium-sized private enterprises in Beijing and Xi'an through a combination of direct and outsourced survey distribution methods. The model was refined based on empirical analysis of the interactions among these variables. Results show that a stronger link between performance and pay enhances both the fairness of compensation procedures and external pay fairness. Additionally, the perceived fairness of salary allocation and procedures significantly contributes to improved overall salary satisfaction.

Source: Economics and Management Innovation

DOI: 10.70088/vbqbbe73

Authors: Junjie An, Masri Bin Abdul Lasi

Institutions: City University Malaysia, Henan Polytechnic Institute

Language: English

Topic: Job Satisfaction and Organizational Behavior

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

OpenAlex ID: W4404997200

FWCI:

Cites:

Cited by:

Related to: 10