Academia Arena 2013;5(2) http://www.sciencepub.


The Relationship between Job Satisfaction and Remuneration in Pakistan: Higher Education Institutes

Tahira Nazir1,, Syed Fida Hussain Shah 2, Khalid Zaman2

1. PhD Scholar, Universiti Teknologi Malaysia, Malaysia.
2. Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan.

Abstract: Empirical research has identified the various factors which affect the employees regarding their job
satisfaction from the intrinsic and extrinsic aspects but limited work is done on the knowledge workers in this regard
in the developing countries like Pakistan. A university teacher imparts training at the highest level in knowledge
category however, factors influencing his/her satisfaction levels are not little known. An attempt has been made to
relate the impact of job satisfaction with regard to benefits and salary of a university faculty member of Pakistan
based on higher education universities. The result shows that there is a positive relationship exists between job
satisfaction and pay of knowledge workers. This research is an attempt to undertake and analyze all those important
aspects that improve the satisfaction level of teachers in the universities and promote learning culture. Pay is one of
the most important and basic determinant of the job satisfaction of university teachers in Pakistan.
[Nair T, Shah SFH, Zaman K. The Relationship between Job Satisfaction and Remuneration in Pakistan:
Higher Education Institutes Perspectives. Academ Arena 2013;5(2):39-42] (ISSN 1553-992X). 8

Key words: Job Satisfaction; Compensations; Pay Performance; Rewards; Working Environment;
Organizational HR Practices; Pakistan.

1. Introduction output and efficiency will improve and turnover of
In countries like Pakistan, the class involved in employees will decrease.
transferring and sharing of knowledge are called Salary, reward or remuneration is defined as the
teachers. In both public and private sectors, teachers are compensation in lieu of the services rendered by the
employed through contractual contracts and in employee. It is always compared in relation to the
government sector on permanent basis. The induction timings on periodic basis. Pay or salary is an
process is well worked out and candidates have to go acknowledgement and regarded as reward to motivate
through different stages of tests and interviews, then and improve the workers behavior towards the goals set
accordingly selected candidates are offered packages by the employer (Oshagbemi, 2000). Although there are
depending on the qualification and experience. Higher many social factors important for enhancing the efficacy
Education Commission (HEC) has helped in improving but salary impact is most potent and effective. The
the standards of education for the colleges and pleasure and satisfaction one drives from pay is
university faculties in terms of higher salaries important for life, as dissatisfaction leads to decreased
depending upon the universities profile whom they interest in work and motivation. The objective of this
completed their final degree but this does not apply study is to around the well debated question in the
same for domestic universities faculties. Therefore, academia i.e., whether pay satisfaction positively
grievances against the job satisfaction exist in the influence employment, enthusiasm and routine, and it
faculty members in these prestigious institutions. In further lead to decrease in turnovers in academics. The
numerous studies of social sciences, salary impact on current study seeks the answer in higher education
the workers’ characteristics and job satisfaction has institutes of Pakistan. The study is divided in to
been found, so an attempt is made to gauge the impact following sections i.e., after introduction which is
and relationship between these two human resource discussed in Section 1 above. Section 2 shows the
variables. review of literature. Data and methodological
Two-Factor theory of Herzberg is an interesting framework is shown in Section 3. Results are discussed
theory that highlights both academic and realistic in Section 4. Final section concludes the study.
implications of job satisfaction. It states that dissatisfied
workers are more concerned about “conditions that 2. Literature Review
surround the job” such as prevailing working Human resource and rewards are well debated
environment, job security, pay, quality of supervision, issues in academia arena. However, this debate is
called as hygiene factors (Herzberg et al., 1959, p.113). ignored in higher education institutes perspectives. Frye
If employees are satisfied with their job, organization (2004) studied the link between salary and job 39

The pertinent question arises whether university of employees regarding pay which ultimately lead to teachers working under basic pay scale are satisfied decreased performance. Huselid.. employees. These arguments and job satisfaction. a study and other factors like desires. tenure track system. between the fringe benefits. Edward Thorndike worked on As quality education in universities is deemed examining the association between job satisfaction and important for the growth of individuals on the one hand work and in 1918 he has published his work in the and development of the society on the other. Nisar et al. Various economic incentives (best teacher 40 aarenaj@gmail. assumption about close and positive association of Taylor worked on employee’s job duties (Taylor.. According to a Bangladeshi study between pay satisfaction and Job satisfaction studies (Tasnim. publication incentives. The teachers less satisfied with 2002. interests accordingly (Heywood and satisfaction and found a constructive relationship If salary can not meet the living cost then teacher has to between them. It is very natural that a interrelation between salary and job satisfaction among handsome salary brings satisfaction and teachers have teachers. lower salary cannot help in bringing job have tested that job satisfaction very much depends on satisfaction as it is not consistent with socio-economic the income. and Vance (1983) suggested that the main reasons for 2012). 2006). (Huber & Crandall. Increase in Journal of Applied Psychology.g. wishes and needs of the was held in University of the Punjab (Nisar et al. followed by 35 percent that of the employees and less attractive then it can greatly were having low level of pay satisfaction and only 18 affect the teachers regardless of gender. 2012. Relationship percent were having high pay satisfaction. work and pay and found that they are dissatisfied positive relationship between compensation practices about their low status. Pay satisfaction variable is associated with still a huge proportion of university teachers are not outcomes of the organization significant in nature.sciencepub. contractual and performing their duties. A sample of 200 respondents. their salaries are considered to be dissatisfied with their 1995). Academia Arena 2013. The that direct benefit of job is the Salary and an important results showed that 47 percent were having medium motivating factor. Salary should be sufficient to cope up with about the payment schemes of the firms and guide their the social standing and culture and cover the living cost. Study focused on evaluation of the impact of the most academicians for quitting jobs are curtailed compensation and other conditions related to workplace salary scales and lesser salaries of employees. The results indicate strong salary to sustain a good life.. low salary greatly affected the female teachers in consisting of male and female. Milkovich & Newman. These studies brought economic reward is considered as one of the important out influencing job satisfaction factors. 1911) University teachers with their job satisfaction.. The studies on employee’s job and findings from the literature review strengthen the satisfaction started almost a hundred years ago. 2006). http://www. (2003) found that relationship consensus on it. highly qualified and working under old basic pay scale Empirical evidence exists regarding the dissatisfaction system. quality of . Cable & Judge. In 1911. (1995) found permanent was collected for this research work. 1990. If salary is not up to the expectations level of pay satisfaction. Tasnim (2006) has conducted research in The aim of the study was to explore the relationship Bangladesh to find out the factors which affect the job between job satisfaction and pay satisfaction of satisfaction of female teachers and found that status and university teachers. Tasema & Soeters (2006) established a status. with job and influence their performance towards Gerhart & Milkovich. 1994.sciencepub. Bennell (2004) analyzed teachers regarding et al. motivation & job satisfaction with their pays or not? Satisfaction or dissatisfaction and increased turnover. lawsuits etc. Okerlund et al.5(2) http://www. absenteeism and other problems with the level of pay affect their overall satisfaction related to pay e. The workers are very much concerned conditions. satisfaction continued to evolve and findings brought Pakistani government has taken initiatives to enhance out humanistic and financial benefits. 1994. jobs in that they may teach in private educational While Werther & Davis (1993) has explored that institutions to raise their earnings at the cost of the Job satisfaction depends upon the matching of rewards quality of the education. research Majority of social scientists considered salary as an grants) have been introduced by the Higher Education important factor which may influence on job Commission for enhancing the education standards but satisfaction. he/she cares more about quality universities through Higher Education Commission. on the teaching staff of the university in context with An essential purpose of job is to earn sufficient their job satisfaction. Schlechty of Rawalpindi and Islamabad region in this regard (Bilal. 1997). salaries of employees and In another research conducted in the Universities job satisfaction is found positive and strong. Experience reveals that pay strategies look for other earnings and would not be able to focus have a positive impact on the performance (Ichniowski on job. and after seven years. 2012). In order to examine the with the expectations of employees from the employer satisfaction level of teachers regarding their pay. The fact is when the quality of education in both private and public sector employee is satisfied. Studies on Job tools to motivate the employee in any organization. pay and work. Nguyen et al. and organization (Bravendam Research Incorporated. 2002).

5(2) http://www. Universities must take keen interest in devising Compensation and other reward structures of the the pay strategies for their teachers and give due universities play an important role in satisfying the consideration to the Pay Packages at par with HEC as it university teachers as well as motivating them to work is one of the major satisfier for their faculty in efficiently. significant relationship with the job university teachers and their job satisfaction in Pakistan. significant and positive relationship with the reward Abbottabad. . The working conditions affect both the male performing their job effectively. University teachers have a COMSATS Institute of Information Technology. motivation and job satisfaction are very important for research grants etc. not satisfied university teachers and lower salary packages becomes with pay structure. The findings of the study clearly de-motivating factors for the faculty members. Pakistan. P. Incentives.. therefore. publication incentives. normal life. Pakistan structure and Pay in context with their job satisfaction. 3. The social needs if not fulfilled definitely hamper the Higher salaries result in high motivation for the efficiency and performance of the teachers. H. Khalid Zaman Some of the findings are mentioned below: Department of Management Sciences. The factors which count in http://www. (1994) Human Behavior archive. Available online on variables of job satisfaction. decreased performance. Dissatisfied employees of the Commission) of Pakistan. 6.sciencepub. Extrinsic Rewards are very important in Teachers: Impact of Working Conditions and improving and increasing the satisfaction level of the Compensation. Job satisfaction of University 3. extrinsic rewards as common indicators for job satisfaction in universities at Pakistan regardless of their 3. Managing job 4. Conclusion of the university teachers in fulfilling their needs thus A major association exists between the pay of describing a direct. Pay is one of the major and regular sources of earning for most 4. study examines the relationship between Job diversity embracement also affects the job satisfaction. Vol teachers of both genders at university level faculty in 1(1). a better salary package for the teachers of Knowledge and Skills for Development. Econ. legal and political factors have severely References impacted the working environment and lives of 1. Brighton the universities is imperative and essential. (2004). In Pakistan University teaching is one of the most 5. besides other working conditions. To sustain and fulfill a Incentives in Sub-Saharan Africa and Asia’. Both track system. best teacher award. University teachers are hired on both packages to the university faculty in the form of Tenure contractual basis as well as permanent basis. HEC (Higher Education Commission) Pakistan important aspects of knowledge sharing and imparting has played an important role in offering lucrative pay quality education. pp 2. If these aspects while designing the compensation and employees especially University teachers are not reward strategies for its teachers. satisfaction. Both human resource development and rewards are female faculty staff although give equal preference to an important issue in academia arena. Bilal. this extrinsic rewards but relationship among the which are extrinsic in nature. Bennell. 2509-2523. E-mail: khalidzaman@ciit. thus contributing magnanimously in the teaching faculty in discharging their duties and enhancing and improving the job satisfaction level of delivering knowledge in University environment the teachers of the Pakistani Universities. and female teachers regardless of their genders. Integr. Inc. ‘Teacher Motivation and employees of the organizations. the job satisfaction satisfaction of the university teachers relies on their pay of teachers is very closely related to their pay packages and other intrinsic and extrinsic reward satisfaction. Whereas. Female and male faculty members have different satisfaction. economic. (2012). Cable & Judge. Universities must give due consideration to strategies and structures of the Pakistani .employeesatisfactions. Issue 5 (September 2007) Pages: organization and factor of equity and fair play. (2002). Job reflect that In Pakistani universities. Bravendam Research. 2.sciencepub. Universities should satisfied with their pay then it would be a great cause of devise and offer attractive and lucrative pay packages de-motivation. Res. commitment with Volume the satisfaction of male faculty members are the rewards 4. increased to its teachers at par with HEC (Higher Education turnover absenteeism. Satisfaction and Remuneration on Higher Education It is found from the results however that teachers have Institutes of Pakistan. 41 aarenaj@gmail. Pay. university would add problems for the universities and may indulge in litigation and lawsuits besides creating a Corresponding Author: dissatisfied environment for the rest of their colleagues. Rev. Analysis and Discussion gender. Academia Arena 2013. 1 In Pakistan. Pakistan is an emerging economy where social.

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