CONCEPTUAL INTEGRATION AND EMPIRICAL TEST OF JOB DESIGN AND COMPENSATION RELATIONSHIPS

Abstract

A conceptual integration of job design and compensation draws on interdisciplinary job design, job evaluation, and labor economic theory. It is argued that job design influences the number and level of skills required and the degree to which jobs are physically aversive or hazardous. External labor markets also respond to skill and physical requirements. Job evaluation links job design and market forces by analyzing jobs’compensable factors that reflect these requirements, and then relating them to the market through wage surveys across firms. An empirical examination presents relationships between job design and pay or job evaluation measures. Strongly supportive results replicate in two separate samples (total n = 213 jobs) which differ in industries, job types, skill levels, job design measures, job evaluation measures, and labor markets. Motivational job design had higher job evaluation measures reflecting higher skill requirements, and mechanistic and perceptual/motor design had lower evaluation measures reflecting lower skill requirements. Biological design had lower evaluation measures reflecting physical requirements.

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