How Much Is Job Satisfaction Linked to Salary?

Glassdoor provides a lot of useful information about the job market, employee compensation, and employee satisfaction.
Consider the observations for Glassdoor by Mario Nuñez in “Does Money Buy Happiness? Link Between Salary and Employee Satisfaction”:
“To isolate the relationship between money and happiness, we ran a linear regression with company satisfaction rating as the response variable and log-transformed total pay as the explanatory variable. We also included controls for location (state), gender, education, years of experience, job title, employer size, industry, and employee status (i.e., was the employee working for that company at the time the review was written?). For ease of interpretation, we transformed the company satisfaction rating to a scale of 0 to 100, with 0 being completely dissatisfied (a 1-star rating) and 100 being completely satisfied (a 5-star rating).”
“Our model suggests that a 10 percent increase in employee pay is associated with a 1 point increase in overall company satisfaction on a 0-100 scale, controlling for all other factors. If an employee making $40,000 per year was given a raise to $44,000 per year, his or her overall employee satisfaction would increase from 77 percent to 78 percent. And it’s important to note that there is a diminishing return to happiness for every extra $1,000 in earnings. Although this effect is statistically significant, it is small.”
“Since money doesn’t seem to have a huge effect on employee satisfaction, what other factors influence job satisfaction?”
Impact of Factors Beyond Salary on Employee Satisfaction

Source: Glassdoor Economic Research.

 

This entry was posted in Career Useful Information, Careers in Retailing, Part 5: Managing a Retail Business and tagged , , , , , , , , . Bookmark the permalink.

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