A Confirmatory Analysis of Pay Satisfaction Dimensions in Banking Industry

Abstract

Pay satisfaction as a multidimensional construct has significant importance for employees. It is also beneficial for the organization to understand employees' overall pay satisfaction. The way bank employees define the pay satisfaction concept is of significant importance for Human Resource Management in the Banking Industry. However, as the dimensionality of any construct depends on its cognitive complexities and because different people define the same construct differently. So it is required to confirm the overall dimensions of bank employees' pay satisfaction. Thus, this research is an attempt to confirm the dimensions of pay satisfaction among banking employees. For this purpose, data were collected from the 238 bank employees through the questionnaire method. The confirmatory factor analysis on AMOS 26.0 supports the multidimensionality of pay satisfaction. The results reflected that bank employees' pay satisfaction comprises four dimensions namely Pay Level, Benefits, Raise, and Pay Structure and Administration it collectively explains more than 70 percent variance of overall pay satisfaction of the bank employees.

Keywords

• pay satisfaction
• confirmatory factor analysis
• multidimensionality
• employee benefits
• employee satisfaction