TITLE:
Employee Monetary Compensation and Employee Job Satisfaction
AUTHORS:
Randolph Watkins, Patricia Fusch
KEYWORDS:
Employee Satisfaction, Employee Motivation, Employee Performance, Monetary Compensation, Income, Minnesota Satisfaction Questionnaire, MSQ, Theory of Work Adjustment, Self-Determination Theory, Employee, LinkedIn, Fortune 500 Companies, United States of America
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.10 No.9,
August
26,
2022
ABSTRACT: It is known employee job satisfaction is related to employee motivation,
performance, retention, and other factors which are beneficial to the employee
and the employer. In recent decades, some
have used the work of Self-Determination Theory to claim pay is irrelevant and
promote the idea it is an employee’s commitment, attitude, and the programs the
employer offers the employee that are important to employee satisfaction,
motivation, performance, morale, and retention. However, the work of
Self-Determination Theory has neither stated nor confirmed this concept. In a
study considering if and to what extent a relationship exists between employee
rate of monetary compensation and employee job satisfaction, it was found a
statistically significant positive relationship exists between employee rate of
monetary compensation and employee overall, extrinsic, and intrinsic job
satisfaction. The sample consisted of N = 129 employees of Fortune 500
companies within the United States of America. Utilizing Spearman’s rank-order
correlation employee overall job satisfaction resulted in ρ = .290, employee extrinsic job satisfaction resulted in ρ = .227, and employee intrinsic job satisfaction resulted in ρ = .325 all demonstrating a positive relationship with employee rate of
monetary compensation. This article discusses the current literature, results,
and implications.