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

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  • An, Junjie
  • Lasi, Masri Bin Abdul

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.

Suggested Citation

  • An, Junjie & Lasi, Masri Bin Abdul, 2024. "The Influence of Fairness for Performance Salary on Employee Pay-Satisfaction," Strategic Management Insights, Scientific Open Access Publishing, vol. 1(8), pages 28-33.
    • Handle: RePEc:axf:smiaaa:v:1:y:2024:i:8:p:28-33
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