Modeling the Relationship Between Pay Level and Pay Satisfaction |
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| Authors: | Robert L. Heneman Gayle Porter David B. Greenberger Stephen Strasser |
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| Affiliation: | (1) Fisher College of Business, The Ohio State University, Columbus, OH, 43210;(2) Rutgers, The State University of New Jersey, USA;(3) The Ohio State University, USA |
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| Abstract: | The relationship between pay level and pay satisfaction was modeled in a field study with 456 employees of nursing departments in a large hospital. After controlling for person, job, and pay system characteristics, pay satisfaction variance was better explained by treating pay level as a power function rather than a linear function. This result was expected given the low wage rate relative to the market, the lack of a formal rewards system, and the high level of tenure in the workforce. Implications of this finding for theory, research, and practice were discussed. |
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