The differing effects of individual- and group-based pay for performance on employee satisfaction: the role of the perceived fairness of performance evaluations

Kwang Bin Bae

Public Management Review, 2023, vol. 25, issue 3, 601-619

Abstract: This study examines the varied effects of individual-based pay for performance and group-based pay for performance on three measures of employee satisfaction: pay satisfaction, organizational satisfaction, and job satisfaction in the public sector. Examining a twelve-year panel data set, this study finds that individual-based pay for performance has a significantly positive relationship with organizational and job satisfaction, but group-based pay for performance has a significantly negative relationship with pay satisfaction. Meanwhile, the results show that the perceived fairness of performance evaluations has significantly positive relationships with pay satisfaction, organizational satisfaction, and job satisfaction.

Date: 2023
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DOI: 10.1080/14719037.2021.1988270

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