Fairness perceptions and satisfaction with components of pay satisfaction

Abstract

Purpose -The purpose of this paper is to integrate two streams of research and investigate the associations of different forms of justice perceptions on attitudinal reactions to four components of compensation: pay level, pay raises, benefits, and structure and administration In doing so, it responds to calls for more primary studies linking interactional justice perceptions to pay satisfaction. Design/methodology/approach -In total, 151 technology professionals employed at an international consulting company were surveyed to investigate hypotheses. Structural equation modeling was used to test the model. Findings -As hypothesized, distributive justice was related to satisfaction with pay level, procedural justice to satisfaction with benefits, raises and pay structure and administration, and informational justice to pay level and structure and administration.Research limitations/implications -The primary limitations of this research are the cross-sectional research design and a single source of survey data. Practical implications -Since pay dissatisfaction is significantly related to numerous employee outcomes and attitudes toward pay meditate the relationship between compensation and work outcomes, understanding the role of perceived justice may facilitate managers' ability to influence pay satisfaction. HR policies and managers' behaviors can influence pay satisfaction as much or more than actual pay (distributive justice). For example, results for informational justice suggest pay satisfaction can be increased by clearly and candidly explaining and communicating the organization's procedures and processes. Originality/value -This paper is the first to examine associations between the four-factor justice model and components of pay satisfaction and demonstrate that informational justice adds additional explained variance for pay level, raises, and structure and administration.

Flexi work, financial well-being, work–life balance and their effects on subjective experiences of productivity and job satisfaction of females in an institution of higher learning

“…People are not concerned if those in other jobs make more money, but they are concerned if people in the same job earn more. Pay satisfaction is affected by how an individual's salary compares to the others in the same rather than people in general jobs, according to the equity theory of motivation (Jawahar & Stone 2011;Judge et al 2010;Spector 1997;Williams, McDaniel & Ford 2007;Williams et al 2008). Rice et al (1990) found a significant practically large correlation (0.50) between pay and job satisfaction in a sample of mental health professionals who all had the same jobs.…”

The living wage as an income range for decent work and life

“…Pay has potentially important behavioural effects because much effort and performance is exercised voluntarily (Colling and Terry, 2010), and perceptions of "decent" levels and processes of pay combine with job content, conditions and hours to shape employee commitment and work motivation (Stevenson and Wolfers, 2013). Pay is thus not simply a function of the external labour market but reflects the need of employers to recognise employee concerns in order to motivate discretionary effort (De Saá-Pérez and García-Falcón, 2002;Jawahar and Stone, 2011).…”

Do career satisfaction and support mediate the effects of justice on organizational citizenship behaviour and counterproductive work behaviour?

“…Informational justice primarily alters reactions to procedures because explanations provide the information needed to evaluate structural aspects of the process. Consistent with Greenberg's () proposal, Colquitt () identified distributive justice, procedural justice, interpersonal justice, and informational justice as the four factors comprising the construct of organizational justice (see also Ambrose, ; Bies, ; Judge & Colquitt, ; Jawahar, ; Jawahar & Stone, ; Thurston & McNall, ).…”