The Relationship Between Individual Inputs, Perceptions, and Multidimensional Pay Satisfaction

Within the framework of revised discrepancy theory, this study examines the relationships of individual inputs and perceptual variables on four facets of pay satisfaction among 301 university faculty members. Statistically controlling for common method variance, actual pay exerted a strong direct effect on such satisfaction. While individual inputs were differentially related to the four measures of pay satisfaction, the perceptual variables (performance, pay fairness, contingent pay, commitment, and job satisfaction) were directly related to at least one dimension of pay satisfaction but did not generally interact with actual pay. The findings suggest perceptual variables affect pay judgments directly, while individual variables may directly or indirectly be related to aspects of pay satisfaction.