Employee satisfaction depends upon ordinal rank of their income (Re-issue)August 31st, 2008 - 6:06 pm ICT by ANI
Washington, Aug 31 (ANI): A new study has shown that employee satisfaction is dependent upon the rank of individuals income in a comparison group, rather than its absolute pay.
During the study, researchers Gordon D.A. Brown, Jonathan Gardner, Andrew J. Oswald, and Jing Qian asked undergraduates to rate how satisfied they would be with wages they might be offered for their first job after college.
The participants expressed feelings about each potential wage in the context of a set of other wages.
The team found that employees did not solely care about their absolute level of pay, instead they were more concerned with their income relative to the salary levels around them in their workplace.
Moreover, individuals were not just influenced by relative income but by the rank-ordered position of his or her wage within a comparison set.
Our study shows how ordinal rank has a statistically significant effect upon well-being said the authors.
Results show that human well-being depends in a particular way upon comparisons with others, they added. (ANI)