The Influence of Fairness for Performance Salary on Employee Pay-Satisfaction

Junjie An and Masri Bin Abdul Lasi

Strategic Management Insights, 2024, vol. 1, issue 8, 28-33

Abstract: A structural equation model was constructed to investigate the relationship between performance-based pay, fair salary distribution, fair salary procedures, external fairness of salary, and salary satisfaction. State owned enterprises and small and medium-sized private enterprises in Beijing and Xi'an were selected as research objects, and the causal relationships between the various elements in the model were empirically analyzed using on-site distribution and entrusted distribution methods. The model was then revised. Research has found that the strength of performance-based pay can significantly positively affect both procedural fairness and external fairness in compensation; Fair salary distribution and fair salary procedures can significantly positively affect salary satisfaction.

Keywords: performance-based compensation; fair compensation; salary satisfaction (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:axf:smiaaa:v:1:y:2024:i:8:p:28-33

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