Employee Satisfaction in Agencies with Merit-Based Pay: Differential Effects for Three Measures

40 Pages Posted: 23 Jan 2015 Last revised: 24 Jan 2015

See all articles by Sungjoo Choi

Sungjoo Choi

Kyung-Hee University

Andrew B. Whitford

University of Georgia - Department of Public Administration and Policy

Date Written: January 21, 2015

Abstract

While many studies have examined the association between merit-based pay and organizational performance, few have assessed the psychological well-being of employees in agencies with such financial incentive schemes. We show that employees in agencies with merit-based pay are less satisfied with their organization than those in agencies that do not implement the incentive systems. We also show that this negative effect is larger in the case of organizational satisfaction than for pay satisfaction or employee satisfaction with the job itself.

Keywords: merit-based pay, job satisfaction, fair appraisal

Suggested Citation

Choi, Sungjoo and Whitford, Andrew B., Employee Satisfaction in Agencies with Merit-Based Pay: Differential Effects for Three Measures (January 21, 2015). Available at SSRN: https://ssrn.com/abstract=2553622 or http://dx.doi.org/10.2139/ssrn.2553622

Sungjoo Choi (Contact Author)

Kyung-Hee University ( email )

Imun Dongdaemoon
Seoul
Korea, Republic of (South Korea)

Andrew B. Whitford

University of Georgia - Department of Public Administration and Policy ( email )

Athens, GA 30602
United States
706-542-2898 (Phone)
706-583-0610 (Fax)

HOME PAGE: http://andrewwhitford.com

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