Attitude Formation of Benefits Satisfaction: Knowledge and Fit of Benefits

Gery Markova () and Foard Jones ()
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Gery Markova: BSB, Wichita State University , United States of America
Foard Jones: , United States of America

International Journal of Business Research and Management (IJBRM), 2011, vol. 2, issue 1, 45-52

Abstract: Using the theoretical framework of the Theory of Reasoned Action [6], we examine benefits satisfaction as an attitude formed by the beliefs about benefits (i.e., benefits knowledge) and the perceived value of these benefits (i.e., fit of benefits to individual needs). We use questionnaires to gather data from a random sample of 591 employees in a large county agency in the South-eastern United States. The data support that knowledge of benefits is associated with enhanced benefits satisfaction and mediates the effect of explanations about benefits on satisfaction. The results provide strong evidence that benefits perceived to suit employee needs generate highest benefits satisfaction. Employees satisfied with their benefits are less likely to consider leaving the organization. The tested model is a starting point for future studies to apply the extended Theory of Reasoned Action [1] and incorporate perceived behavioural control and subjective norms (i.e., co-workers’ attitudes) in forming benefits satisfaction. Understanding employees’ affective and cognitive reactions to compensation, including benefits, can render better practices. Companies should use information campaigns to improve employee beliefs about benefits. Better attentiveness to individual needs and preferences can maximize the utility of a benefits plan and improve its acceptance. We replicate and extend past research in a parsimonious model of benefits satisfaction with a random sample of public sector employees.

Keywords: Benefits; Benefits Satisfaction; Turnover Intentions (search for similar items in EconPapers)
JEL-codes: M0 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aml:intbrm:v:2:y:2011:i:1:p:45-52

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