Pay Satisfaction of Software Professionals in India

Abstract

This study explores pay satisfaction-related issues of software professionals in India, specifically assessing the impact of different dimensions of pay satisfaction on intent to leave. Since satisfaction with pay is an emotional/affective reaction and is likely to be influenced by personal and environmental factors, the study explores some social psychological processes like leader-member exchange, justice, and voice that are likely to impact pay satisfaction of these professionals. Using a sample of 306 software professionals drawn from various organizations, the study tests the various hypotheses. Three broad trends emerge from the data: First, process dimensions of pay satisfaction are better predictors of the professionals' intention to leave the organization. Second, distributive justice predicts both the amount and process dimensions of pay satisfaction whereas procedural justice predicts only the process dimensions. Finally, the hypothesis that LMX leads to voice which leads to procedural justice which in turn leads to satisfaction with the process dimensions of pay satisfaction found support from the data and the strength of relationships was stronger for structure and administration dimension as compared to raises dimension of pay satisfaction. The findings suggest that though pay levels are important, the HR Department needs to make additional efforts towards the processes through which pay and raises are determined as these processes might provide the crucial advantage for retaining software professionals in an environment where salary levels are competitive. Additionally, since both the pay-related processes and procedural justice are important, these processes need to be both effective and fair. Though fairness in appraisal and pay- related processes can be built through various HR systems like participation (voice), the results show that these processes will be effective only if they are implemented well by the immediate leader. The results have implications for leadership development and training on appraisal and pay-related processes. Unless the leaders are trained appropriately and made aware of the social psychological processes that go on in a team, the design of systems by the HR Department may not be effective. Since distributive justice is an important predictor of pay satisfaction, comparison with relevant others plays an important role in pay satisfaction. The HR Departments in these organizations needs to identify pay levels that compete in the market. Indians are shown to have a familial identity and value the opinions of their kith and kin; hence, acknowledging and incorporating the inputs of social comparison person (family and friend) might provide more useful insights into how these professionals perceive distributive justice.

Role of Career Adaptability and Its Resources in Predicting Vocational Attitudes of Indian IT Professionals

“…In global IT careers, factors such as better job scopes outside the present organization, perceived vocational alternatives, job satisfaction, workplace stress, and burnout were some of the reasons for quitting intention (Joseph, Ng, Koh, & Ang, 2007). Among Indian IT employees, such intention was related to lucrative job offers that matched salary demands, interest, skills and competencies (Ghapanchi & Aurum, 2011), domestic issues (Aboobaker, Edward, & Pramatha, 2017), sociocultural and demographic norms (Lacity et al, 2008), pay dissatisfaction (Bhal & Gulati, 2007), innovative career passions (Victor, 2011) and so on. Findings across literature implied IT professionals’ turnover cogitation as a key concern of human resource management.…”

“…In addition, literature considers career satisfaction as an important vocational attitude in the contemporary world of work, but it remains an unexplored concept in Indian IT occupational domain. Perhaps, extant studies convey that satisfaction in Indian IT careers is mainly linked to the notion of job satisfaction, pay-satisfaction, and work–life balance (Bhal & Gulati, 2007; Lacity, Iyer, & Rudramuniyaiah, 2008; Singh, 2010). Furthermore, researchers annotate employees’ turnover intent, which is a key focus of the Indian IT industry and has to be understood from different perspectives (Lacity et al, 2008).…”

Recruitment and retention in foreign firms in India: A resource‐based view

“…As an example, the study by Bhal and Gulati (2007) revealed that process-related dimensions, for example, performance orientation of rewards, impact job satisfaction and thus employee willingness to stay with their current employer. A reason for this is that performance-related rewards are perceived as fairer than traditional…”

When do high-context communicators speak up? Exploring contextual communication orientation and employee voice.

“…In addition, we see that the manager-subordinate relationship may weaken the effect of contextual communication orientation on promotive voice. Past research indicates that high LMX enhances voice behavior (Bhal & Gulati, 2006, 2007Botero & Van Dyne, 2009;Burris, Detert, & Chiaburu, 2008;Hsiung, 2012;Van Dyne, Kamdar, & Joireman, 2008). The current study indicates that LMX may have different effects on high-versus low-context communicators, such that high-context communicators receive greater benefit in terms of self-expression than others from a strong relationship with the manager.…”