Salary Satisfaction as an Antecedent of Job Satisfaction: Development of a Regression Model to Determine the Linearity between Salary Satisfaction and Job Satisfaction in a Public and a Private Organization

Abstract

Despite an increasing number of studies on salary satisfaction, no unifying work is focused on the measurement of degree of difference in salary satisfaction in a public sector organization and a private sector organization in Indian context. Salary satisfaction decreases job satisfaction, motivation, performance, and increases absenteeism, turnover intensions. We hypothesized that there is a significant difference in the degree of salary satisfaction in public sector and private sector organization. Data were collected from 250 employees consisting of managerial and non-managerial staff from both public sector and private sector organizations. The results showed that employees in public sector organization have greater degree of salary satisfaction in comparison to private sector employees. In addition job satisfaction increases or decreases with increase or decrease in salary satisfaction. The purpose of this study is to invoke salary satisfaction in private sector organization. Obtained results were in the line of the hypotheses. In terms of salary satisfaction; a significant difference is noticed between public sector and private sector organization. As expected, public sector employees have exhibited higher degree of salary satisfaction as compared to private sector employees. Most importantly, salary satisfaction is being proven as the catalyst for enhancing job satisfaction level of employees.

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