Perceived compensation fairness, job design, and employee motivation: The mediating role of working environment

Summary

The research paper by Rasheed, Jamad, and Pitafi (2020) explores the relationships among perceived compensation fairness, job design, employee motivation, and the mediating role of the working environment, specifically within the context of public sector commercial banks in Pakistan. The study addresses a critical challenge for public sector banks in Pakistan, which often struggle to retain a motivated and competitive workforce due to factors like less competitive compensation and limited growth opportunities. The authors aimed to understand whether perceived compensation fairness and job design are associated with employee motivation and how these factors influence motivation in banking organizations. The methodology involved examining a theoretical model of employee job motivation. The findings were based on data collected from employees in public sector commercial banks. Interviews with these employees further validated the study's quantitative results. The study's implications are significant for both theory and practice. Theoretically, it contributes to the existing literature by establishing a link between perceived compensation fairness and employee job motivation, as well as between job design and job motivation. Practically, the research offers policy guidelines for top management and policymakers in public sector commercial banks, emphasizing the importance of addressing the issues raised in the study to enhance employee motivation and retention. A positive and inclusive work atmosphere, coupled with fair and competitive remuneration, is highlighted as essential for cultivating employee commitment and loyalty. Additionally, transparent compensation structures are crucial for building employee trust and aligning individual goals with organizational objectives.