Pay Satisfaction and Organizational Outcomes

Abstract

Using multi level and multi method data, we investigated the relationship between pay satisfaction and outcomes at the organizational level of analysis. Individual‐level survey data on pay satisfaction (including satisfaction with pay level, satisfaction with pay structure, satisfaction with pay raises, and benefits) were collected from 6,394 public school teachers. Organizational‐level outcome data, both survey and archival, were collected from the 117 public school districts employing these teachers. With respect to its influence on organizational outcomes, pay satisfaction was positively related to school district‐level academic performance and negatively related to average teacher intention to quit. We also explored the relationship between district‐level union satisfaction and pay satisfaction, which was found to be positive. We discuss implications of our findings for for‐profit companies that are knowledge based and human capital intensive (e.g., the service sector) and address possible future directions for research on pay satisfaction.

Getting off on the right foot: Subjective value versus economic value in predicting longitudinal job outcomes from job offer negotiations.

“…The correlation between our measures of SV and the economic value of concessions was relatively small (r ϭ .20, p Ͻ .10), 5 which is comparable to Curhan et al's (2006) correlation of .16 between total SV and economic value on a laboratory task in which economic value was objectively verifiable. This is also consistent with Currall et al's (2005) finding that objective pay levels did not correlate with pay satisfaction and Dreher et al's (1988) finding of a relationship between fringe benefit levels and satisfaction with these benefits only among participants who were knowledgeable about how their benefit levels compared with those of other employers in the same industry.…”

“…However, SV and economic value tend to be only weakly correlated (e.g., Curhan et al, 2006;Galinsky et al, 2002), and there are theoretical arguments and empirical data suggesting that attitudes and behavioral intentions are better predicted by SV than economic value (e.g., Curhan et al, 2006). Further, objective pay levels do not always correlate with pay satisfaction (Currall, Towler, Judge, & Kohn, 2005), which supports the idea that subjective perceptions can be more proximal to generalized job attitudes than can economic characteristics.…”

Examining the Relationships among Job Satisfaction, Organizational Commitment, and Turnover Intention: An Empirical Study

“…Research results have shown job dissatisfaction to be associated with negative behavioral outcomes such as absenteeism, workplace accidents, and labor turnover (Griffeth, Horn, & Gaertner, 2000;Hellman, 1997;Hellriegel & Slocum, 2004;Newstrom, 2006;Sousa-Poza & Sousa-Poza, 2007). Currall et al, (2005) found pay satisfaction to be positively related to performance and negatively related to employee turnover intentions. Similarly, the results of another study by Davis (2006) also showed general job satisfaction to be strongly and negatively related to turnover intentions (r = -.69).…”

Relationship between Teachers’ Job Satisfaction and Their Attitudes towards Students’ Beliefs and Motivation

“…Some studies indicated that job satisfaction is connected with teachers' sense of efficacy (Currall, Towler, Judge, & Kohn, 2005). Therefore, when teachers have high perception of their professional job quality, they also have positive attitudes towards teaching, as an achievement factor.…”