Merit-based Rewards, Job Satisfaction and Voluntary Turnover: Moderating Effects of Employee Demographic Characteristics

Fabian Jintae Froese, Vesa Peltokorpi, Arup Varma, Azusa Hitotsuyanagi-Hansel

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper draws on the reflection theory of compensation (Thierry, H. (1998). ‘Compensating work’. in P. J. D. Drenth, H. Thierry and C. J. de Wolff (eds), Handbook of Work and Organizational Psychology, 2nd edn, pp. 291–315, Psychology Press: Hove; Thierry, H. F. (2001). ‘Job evaluation systems and pay grade structures: do they match’, International Journal of Human Resource Management, 8, pp. 1313–1324) to examine the influence of individual merit-based rewards on voluntary turnover via job satisfaction. It also tests the moderating effects of employees’ gender, age and education level between merit-based rewards and job satisfaction. Data were collected from 636 employees in Japan at three points in time over a 12-month period. The findings show that merit-based rewards have a direct, positive effect on job satisfaction and an indirect effect on voluntary turnover. The effect of merit-based rewards on job satisfaction was moderated by gender and education, providing evidence that merit-based rewards are more important for male and highly educated employees. Practical and theoretical implications are discussed.

Original languageEnglish
Pages (from-to)610-623
Number of pages14
JournalBritish Journal of Management
Volume30
Issue number3
DOIs
Publication statusPublished - 2019 Jul

Fingerprint

Job satisfaction
Personnel
Education
Human resource management
Voluntary turnover
Reward
Employees
Demographic characteristics
Moderating effect

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

Cite this

@article{34799cc1c69b450c82e3e8cd43a6064a,
title = "Merit-based Rewards, Job Satisfaction and Voluntary Turnover: Moderating Effects of Employee Demographic Characteristics",
abstract = "This paper draws on the reflection theory of compensation (Thierry, H. (1998). ‘Compensating work’. in P. J. D. Drenth, H. Thierry and C. J. de Wolff (eds), Handbook of Work and Organizational Psychology, 2nd edn, pp. 291–315, Psychology Press: Hove; Thierry, H. F. (2001). ‘Job evaluation systems and pay grade structures: do they match’, International Journal of Human Resource Management, 8, pp. 1313–1324) to examine the influence of individual merit-based rewards on voluntary turnover via job satisfaction. It also tests the moderating effects of employees’ gender, age and education level between merit-based rewards and job satisfaction. Data were collected from 636 employees in Japan at three points in time over a 12-month period. The findings show that merit-based rewards have a direct, positive effect on job satisfaction and an indirect effect on voluntary turnover. The effect of merit-based rewards on job satisfaction was moderated by gender and education, providing evidence that merit-based rewards are more important for male and highly educated employees. Practical and theoretical implications are discussed.",
author = "Froese, {Fabian Jintae} and Vesa Peltokorpi and Arup Varma and Azusa Hitotsuyanagi-Hansel",
year = "2019",
month = "7",
doi = "10.1111/1467-8551.12283",
language = "English",
volume = "30",
pages = "610--623",
journal = "British Journal of Management",
issn = "1045-3172",
publisher = "Wiley-Blackwell",
number = "3",

}

Merit-based Rewards, Job Satisfaction and Voluntary Turnover : Moderating Effects of Employee Demographic Characteristics. / Froese, Fabian Jintae; Peltokorpi, Vesa; Varma, Arup; Hitotsuyanagi-Hansel, Azusa.

In: British Journal of Management, Vol. 30, No. 3, 07.2019, p. 610-623.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Merit-based Rewards, Job Satisfaction and Voluntary Turnover

T2 - Moderating Effects of Employee Demographic Characteristics

AU - Froese, Fabian Jintae

AU - Peltokorpi, Vesa

AU - Varma, Arup

AU - Hitotsuyanagi-Hansel, Azusa

PY - 2019/7

Y1 - 2019/7

N2 - This paper draws on the reflection theory of compensation (Thierry, H. (1998). ‘Compensating work’. in P. J. D. Drenth, H. Thierry and C. J. de Wolff (eds), Handbook of Work and Organizational Psychology, 2nd edn, pp. 291–315, Psychology Press: Hove; Thierry, H. F. (2001). ‘Job evaluation systems and pay grade structures: do they match’, International Journal of Human Resource Management, 8, pp. 1313–1324) to examine the influence of individual merit-based rewards on voluntary turnover via job satisfaction. It also tests the moderating effects of employees’ gender, age and education level between merit-based rewards and job satisfaction. Data were collected from 636 employees in Japan at three points in time over a 12-month period. The findings show that merit-based rewards have a direct, positive effect on job satisfaction and an indirect effect on voluntary turnover. The effect of merit-based rewards on job satisfaction was moderated by gender and education, providing evidence that merit-based rewards are more important for male and highly educated employees. Practical and theoretical implications are discussed.

AB - This paper draws on the reflection theory of compensation (Thierry, H. (1998). ‘Compensating work’. in P. J. D. Drenth, H. Thierry and C. J. de Wolff (eds), Handbook of Work and Organizational Psychology, 2nd edn, pp. 291–315, Psychology Press: Hove; Thierry, H. F. (2001). ‘Job evaluation systems and pay grade structures: do they match’, International Journal of Human Resource Management, 8, pp. 1313–1324) to examine the influence of individual merit-based rewards on voluntary turnover via job satisfaction. It also tests the moderating effects of employees’ gender, age and education level between merit-based rewards and job satisfaction. Data were collected from 636 employees in Japan at three points in time over a 12-month period. The findings show that merit-based rewards have a direct, positive effect on job satisfaction and an indirect effect on voluntary turnover. The effect of merit-based rewards on job satisfaction was moderated by gender and education, providing evidence that merit-based rewards are more important for male and highly educated employees. Practical and theoretical implications are discussed.

UR - http://www.scopus.com/inward/record.url?scp=85042524168&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85042524168&partnerID=8YFLogxK

U2 - 10.1111/1467-8551.12283

DO - 10.1111/1467-8551.12283

M3 - Article

AN - SCOPUS:85042524168

VL - 30

SP - 610

EP - 623

JO - British Journal of Management

JF - British Journal of Management

SN - 1045-3172

IS - 3

ER -