Preference between Salary or Job Security Increase

Abstract

A survey was conducted to test the preference of salaried employees when given the option of increased pay versus increased job security. The study also looked at various job characteristics and compared how employees ranked them as motivators and satisfiers. Subjects were 41 automobile industry salaried employees who responded to written questionnaires. The results showed a preference for increased salary over increase in job security. Respondents who preferred a salary increase demonstrated a less satisfied attitude with current salary and overall satisfaction with the job. Those preferring increased security ranked security higher than salary as a satisfier, but not as a motivator. Those preferring a salary increase ranked compensation higher than job security as a motivator and a satisfier. One group, male middle managers, showed a higher preference for salary increase versus increased security. Overall average response ranking of job elements resulted in compensation being ranked as the number one element in importance towards job satisfation while increase in salary for performance ranked as the number one element in importance in motivating employees. Job security ranked fifth as a satisfier and seventh as a motivator overall.

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