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

Authors

  • Junjie An Faculty of Business Administration, City University, Kuala Lumpur, Malaysia; City University, Kuala Lumpur, Malaysia; Henan Polytechnic Institute, Henan, Nanyang, China Author
  • Masri Bin Abdul Lasi Faculty of Business Administration, City University, Kuala Lumpur, Malaysia; City University, Kuala Lumpur, Malaysia Author

DOI:

https://doi.org/10.70088/swxn5338

Keywords:

performance-based compensation, fair compensation, salary satisfaction

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.

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Published

11 October 2024

Issue

Vol. 1 No. 8 (2024)

Section

Article

How to Cite

An, J. and Lasi, M.B.A. (trans.) (2024) “The Influence of Fairness for Performance Salary on Employee Pay-Satisfaction”, Strategic Management Insights, 1(8), pp. 28–33. doi:10.70088/swxn5338.