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The purpose of this paper is to examine the direct and indirect effects of demographic factors on employee compensation, job satisfaction and organizational commitment in private higher educational institutes in Bangladesh. Specifically, how do compensation structure and job satisfaction mediate in the link between demographic factors and organizational commitment? To answer this question, a theoretical framework using the theory of employee retention provided by Martin and Kaufman, as its basis was established.

Data (n = 515) were collected from faculty members of the private universities in Bangladesh. Structural equation modeling was used to analyze the data.

Findings indicate that though demographic factors have no direct impact on organizational commitment, they have indirect impacts on organizational commitment through the mediation of compensation structure and faculty job satisfaction. Besides, compensation structure also has a significant mediating role in the link between demographic structure and faculty job satisfaction.

One possible drawback is the number of private universities from which the data were collected. In the sample used here, only 20 private universities were selected to conduct the survey. Besides, the study could not include public universities that are also a significant part and parcel of higher education in the country. So, if more private and public universities were taken into consideration to collect the data, the results might be improved. Thus, the usual cautions about overgeneralizing findings from this sample, to populations for which it is not strictly representative, apply.

From a practical perspective, as a cumulative body of work on organizational commitment, we will be better able to advise policymakers and educators on the elements they need to address to increase the longer engagement of the faculty members in their institutes. In this study, the one area of findings that may help policymakers and educators the most concerns compensation package that affects job satisfaction and organizational commitment. We found that demographic factors and compensation packages are the most important factors for the faculty members to impact on organizational commitment in this study.

The social implication is that policymakers of the private universities can focus on fair justice in terms of demographic factors and compensation package for job satisfaction, motivation and organizational commitment of the faculty members in their universities.

The findings of the study are important for the policymakers of the higher education institutes.

This study aims to examine the extent to which the demographic and work‐related variables of educational level, gender, age, salary level, organizational tenure, and union membership are useful predictors of satisfaction with pay level, benefits, raises, and the structure/administration of a compensation system. These variables have previously been utilized in the prediction of satisfaction with pay levels, but have not been tested as useful predictors of the other three dimensions of compensation satisfaction.

This study used multiple regression analyses and samples of 423 employees in the USA with a 63 percent response rate and 519 employees in the Baltics with a 73 percent response rate.

It was found that not all of the variables are equally useful predictors of each of the four dimensions of compensation satisfaction and that differential prediction is occurring among the four dimensions and across the two world regions. Surprisingly, it was found that in seven of the eight analyses the strongest predictor of satisfaction with the four dimensions of compensation satisfaction is job tenure, while actual compensation level, which was expected to be the strongest predictor, was found to be quite weak.

A major weakness is that all of the data were self‐reported. Ideally the demographic and work‐related variables would have been collected directly from the organization in addition to being collected from employees. A second limitation is that the characteristics of the present sample may limit the generalizability of the results. An inordinate number of the subjects were unionized, female, and married. The major implication is that the paper supports the differential prediction for various dimensions of compensation satisfaction and for the need to explore for additional variables that can account for significant proportions of the variance in these dimensions.

The paper is the first of its kind to examine in a single or cross‐cultural setting the relationship between common demographic and work‐related factors and compensation satisfaction while controlling for organizational level. The literature review traverses the research in the area stretching from the 1940s to 2005 and makes specific suggestions for future research that could advance the field.

The purpose of the study is to conduct an in-depth study of employee performance in connection with compensation, job satisfaction and the work environment of employees at the PT Bank Rakyat Indonesia (Persero) Tbk.

This study was performed at the PT Bank Rakyat Indonesia (Persero) Tbk, which operates in Indonesia, and included all employees of the different branch offices in Sumatera, Jawa, Kalimantan, Sulawesi, Bali and Jayapura.

Compensation does not directly affect employee performance but working environment does directly influence employee performance at the PT Bank Rakyat Indonesia (Persero) Tbk. There is the power of compensation and working environment on job satisfaction and employee performance at the PT Bank Rakyat Indonesia (Persero) Tbk.

The difference between this research and previous ones is the application of compensation influence testing on employee job satisfaction and performance within one bank in Indonesia.

The purpose of this paper is to examine the impact of the compensation amount as well as the mode through which compensations are paid on farmers’ satisfaction with the compensation received for farmland expropriation in China.

Using rural household survey data collected among 450 households in three provinces, located in eastern, central and western China, this paper estimates the impacts of compensation payments, compensation modes, household characteristics and other control variables on farmers’ satisfaction applying an ordinal probit model.

The major findings are: farmers’ satisfaction with the compensation depends not only on the size of the compensation but also on the gap between the compensation and the market value of the expropriated land; and the compensation amount positively affects farmers’ satisfaction when the social security compensation mode is used, but does not significantly affect farmers’ satisfaction when other modes are used.

First, it contributes to the literature on farmland expropriation by providing empirical evidence of the direct impact of the compensation amount and other factors on the degree of farmers’ satisfaction with farmland compensations. Second, potential interactions between compensation amount and compensation mode are taken into account in estimating factors affecting farmers’ satisfaction.

The purpose of this article is to examine whether the design of chief executive officer (CEO) compensation generates incentives to engage in managerial behavior that enhances customer satisfaction and whether these incentives, in turn, lead to higher firm value.

A unique dataset combining customer satisfaction and executive compensation data was used, and the relationship between option sensitivity, customer satisfaction and performance was modeled using simultaneous equations modeling with industry and year fixed effects.

Findings suggest that CEO compensation plays an important role in explaining the variation in customer satisfaction and firm value. Specifically, CEO short-term compensation (salary or bonus) has no affect on customer satisfaction or firm value; the sensitivity of CEO wealth from long-term incentive compensation to stock price changes is positively related and also exhibits an inverted U-shaped relationship with customer satisfaction; the sensitivity of CEO wealth from long-term incentive compensation to stock price changes interacts negatively with CEO longevity and industry concentration but positively with advertising expenses in affecting customer satisfaction; the sensitivity of CEO wealth from long-term incentive compensation to both stock price changes and customer satisfaction positively affect firm value; and the sensitivity of CEO wealth from long-term incentive compensation to stock price changes interacts positively with customer satisfaction to affect firm value.

This study suffers from several limitations. First, the sample is limited to firms with ACSI scores available. Second, this study is limited to only publicly traded firms, which limits our ability to generalize regarding customer satisfaction, option sensitivity and firm value.

This study has several important implications for researchers and managers. The first is that the corporate board appears to view investment in customer satisfaction as similar to an investment in other intangible assets or technology, in that they reward managers with a nonlinear payoff profile. To encourage managers to invest discretionary funds wisely, incentive compensation is important. Second, compensation committees of corporate boards should not allow the option sensitivity to reach extreme levels because, at some point, managers’ incentives appear to shift more toward short-term earnings objectives and away from investment in intangibles, which have a longer-term payoff. Third, if boards are concerned about customer satisfaction and market value, when designing compensation packages, they should shift their focus from the structure of pay to the sensitivity of pay to performance. The exception to this is that for CEOs with very long tenures (or for those close to retirement), high levels of option sensitivity may distort incentives away from a focus on customer satisfaction. Finally, our results indicate that strategies that enhance customer satisfaction provide an incremental benefit in terms of firm value, beyond incentive compensation strategies.

The results indicate that a “stakeholder focus” which includes customers is value adding for shareholders as well. The results also imply that perhaps using a “balanced scorecard” approach to assessing performance in terms of customer satisfaction outcomes, or at least acknowledging the drives of customer satisfaction explicitly, could be an alternative to using highly sensitive incentive-based compensation when such compensation schemes are less desirable.

Prior research has found that the structure of fixed versus incentive-based compensation impacts customer satisfaction. However, this is one of the first papers to investigate the relationship between the sensitivity of CEO compensation and customer satisfaction. Findings have important implications for boards who seek to structure CEO pay so that CEOs have incentives to enact policies that benefit customers and, in turn, firm performance.

This study aims to generate novel insights about minimum wage policy implementation through a joint assessment of the mediating roles of work motivation, work engagement and job satisfaction in predicting outcomes such as turnover intention and work engagement.

Data were collected from hotel employees in Malaysia using an electronic survey. A total of 239 responses were used in analyzing direct and indirect effects.

Results reveal that work motivation, work engagement and job satisfaction significantly mediated the relationship between employee compensation satisfaction and employee turnover intention. Work motivation was found to mediate the relationship between employee compensation satisfaction and employee work engagement. Additionally, work engagement and job satisfaction mediated the relationship between employee work motivation and employee turnover intention.

Missing data are inevitable in survey research. Due to data missing for some of the demographic questions, the moderating effect of certain demographic characteristics (e.g. sex) could not be assessed.

Given recent minimum wage policy implementation in Malaysia, it is imperative that Malaysian hotel operators understand to what extent employee compensation satisfaction influences how employees perceived their jobs and to what extent work motivation, work engagement and job satisfaction mediate employee compensation satisfaction and employee turnover intention.

This study makes a significant contribution to the hospitality compensation research area, specifically regarding the impact of compensation on how employees perceived their jobs after minimum wage implementation.

The present study compares two types of compensation – i.e. on‐the‐spot and delayed – and tries to reveal how and when firms can utilize delayed compensation effectively. For this, failure severity is considered how these two types of compensation affect satisfaction and repurchase intentions.

A scenario‐based experiment in the hotel and restaurant industries was used with a sample of 292 students.

The results show that failure severity acts as a moderating variable in a recovery process of compensation‐satisfaction‐repurchase intention. The more severe consumers perceive the failure is, the more they depend on satisfaction to decide repurchase intentions. The two types of compensation are also moderated by failure severity on their effects on satisfaction and repurchase intentions. On‐the‐spot compensation leads to more satisfaction and repatronage intentions when failures are severe, but the results are not as straightforward when failures are insignificant. Under such a condition, while delayed compensation does not engender customer satisfaction with recovery as much as on‐the‐spot compensation, repatronage intentions for both types of compensation were similar in the hotel industry and even higher in restaurant services.

Industry differences such as ease of visit, frequency of visit, competition factors, and primary value (e.g. hedonic versus utilitarian) are expected to influence the effects of on‐the‐spot versus delayed compensation.

The study provides practitioners with the implication that the timing of compensation should be approached strategically according to the severity of failure and recovery outcomes they expect to achieve.

The present study tries to focus on compensation, one of the most commonly used recovery strategies, and tries to find the effects of different timings of it.

This research aimed to study the impact of compensation on employee retention and turnover intentions among healthcare employees. The study also tested the mediation role of job satisfaction in the relationship.

In the present study, self-administrated questionnaires were distributed among 600 doctors working in public hospitals of Pakistan, following stratified sampling. The data analysis was conducted through SPSS and smart-PLS.

Results of the present study supported all the hypotheses (H1–H7), such as the significant relationship of compensation with employee retention and turnover intentions. Results further confirmed the mediation effect of job satisfaction between compensation and employee retention as well as compensation and turnover intentions.

This study is useful for policymakers and organizational managers since the study provides guidelines on employee retention and high turnover intentions and how these factors are influenced by improved compensation.

This study sheds light on the relationship of compensation together with employee retention and turnover intentions through the mediating role of job satisfaction in healthcare context, which was overlooked in the existing literature.

This study examines the relationship between CEO compensation and patient satisfaction in Ontario, Canada. The purpose of this paper is to determine what impact hospital CEO compensation has on hospital patient satisfaction.

The analyses in this study were based on data of 261 CEO-hospital-year observations in a sample of 103 nonprofit hospitals. A number of linear regressions were conducted, with patient satisfaction as the dependent variable and CEO compensation as the independent variable of interest. Controlling variables included hospital size, type of hospital, and frequency of adverse clinical outcomes.

CEO compensation does not significantly influence hospital patient satisfaction. Both patient satisfaction and CEO compensation appear to be driven primarily by hospital size. Patient satisfaction decreases, while CEO compensation increases, with the number of acute care beds in a hospital. In addition, CEO compensation does not even appear to moderate the influence of hospital size on patient satisfaction.

There are several limitations to this study. First, observations of CEO-hospital-years in which annual nominal CEO compensation was below $100,000 were excluded, as they were not publicly available. Second, this research was limited to a three-year range. Third, this study related the compensation of individual CEOs to a measure of performance based on a multitude of patient satisfaction surveys. Finally, this research is restricted to not-for-profit hospitals in Ontario, Canada.

The findings seem to suggest that hospital directors seeking to improve patient satisfaction may find their efforts frustrated if they focus exclusively on the hospital CEO. The findings highlight the need for further research on how CEOs may, through leading and supporting those hospital clinicians and staff that interact more closely with patients, indirectly enhance patient satisfaction.

To the best of the authors’ knowledge, no research has examined the relationship between hospital CEO compensation and patient satisfaction. This research fills the gap and provides a basis for future research.

The purpose of this paper is to explore how the organizational recovery response to other‐customer failure influences the affected customer's level of satisfaction, unfavorable word‐of‐mouth (WOM), and repurchase intentions toward the firm.

Two experimental studies: 2 (complaint versus no complaint)×3 (employee effort (EE): high versus low versus no)×2 (compensation versus no compensation) were used to test the research hypotheses in a restaurant context.

In cases of other‐customer failure, the outcome valence (failure discontinues versus continues) influences how complainants and non‐complainants rate their perceptions of satisfaction and subsequent behavioral intentions toward the firm. Customers who perceive that there has been good EE made to help solve the problem of other‐customer failure give higher service evaluations than those who perceive little or no EE. Additionally, there are insignificant differences in the rating of satisfaction, repurchase intention, or negative WOM from customers in the latter group. Offering compensation is not a cure‐all. It has the strongest effect on non‐complainants in the low EE scenario.

Service managers need to design well‐balanced organizational recovery systems in terms of the outcome of recovery (i.e. compensation) and the way in which the recovery process is delivered (i.e. EE) to the affected customers in response to other‐customer failures. Since the influence of compensation on service evaluations is largely dependent on customer perceptions of employee‐effort, providing employees with the appropriate problem‐solving skills for working with both problem‐causing customers and the problem‐affected customers is a key issue for service marketers in cases of other‐customer failure.

The paper examines the importance of the as yet under‐researched issue of how organizational recovery responses to other‐customer failure influence a customer's service evaluations of the firm.