Factors Infuencing the Evaluation of Remuneration Justice
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Abstract
Although the large body of literature suggests the importance of fair compensation, the understanding of the nature of remuneration justice remains limited. The paper fills the gap by combining the three streams in the research: diversified definitions of justice in management sciences, philosophy and ethics, theory of organizational justice and research on employee engagement. Based on theoretical assumptions, a remuneration justice as-sessment model was developed. The evaluation of the remuneration fairness depends on three dimensions: perception of the features of the remuneration system, employees’ convictions regarding the legitimacy of pay differentiation and work needs. The hypothe-sised model was tested on a representative sample of 1,067 working Poles.
This research has used SEM-PLS approach including exploratory factor analysis. The find-ings carry theoretical implications, since they extend the research and refine the essence of remuneration justice. From a practical perspective, the relationship between the three predictors – system, beliefs and needs – provide a proof on how remuneration justice is composed and how it could be developed.
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