The model of relationships between pay for individual performance and work engagement
Career Development International
ISSN: 1362-0436
Article publication date: 10 September 2018
Issue publication date: 21 September 2018
Abstract
Purpose
Research on the relationship between pay for individual performance (PFIP) and work engagement (WE) is limited. The purpose of this paper is to present a model outlining a threefold association between PFIP and WE: a direct association, an indirect association via pay satisfaction and a joint indirect association via pay level and pay satisfaction.
Design/methodology/approach
Structural equation modeling and bootstrapping procedures were used to test hypotheses with regard to these associations based on data obtained from two independent studies: the author’s own research project, and the European Work Conditions Survey 2015.
Findings
In both studies, the author found the hypothesized direct association between PFIP and WE; indirect association between PFIP and WE via pay satisfaction; and a joint indirect association between PFIP and WE via pay level and pay satisfaction.
Research limitations/implications
Given its limited cross-sectional design, future longitudinal research in this area is needed to test the model of relations presented in this paper.
Practical implications
The association between PFIP and WE is weak, and partially mediated by pay satisfaction; thus, it seems that to promote WE, it is not solely sufficient to introduce PFIP into remuneration systems, but that, in addition, PFIP should be aligned with employee pay expectations.
Originality/value
This study contributes to the career development literature by proposing and initially testing a model describing the three ways PFIP may be related to WE, one of the most crucial factors in achieving career success.
Keywords
Acknowledgements
The author would like to thank editor and anonymous reviewers for their helpful feedback. The author is grateful to Professor Yoav Ganzach for his comments and assistance in a process of preparing revised version of this manuscript. While preparing final revised version of this paper Konrad Kulikowski obtained financial support in the form of the doctoral scholarship Etiuda 5 from the Polish National Science Centre (Narodowe Centrum Nauki), Scholarship Agreement No. UMO-2017/24/T/HS6/00527.
Citation
Kulikowski, K. (2018), "The model of relationships between pay for individual performance and work engagement", Career Development International, Vol. 23 No. 4, pp. 427-443. https://doi.org/10.1108/CDI-10-2017-0181
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited