Benefit Communication and Its Effects on Employees’ Benefit Level Satisfaction: The Multiple Mediating Effects of POS and Benefit Comparison

Abstract

Many firms offer employees a broad range of benefits as part of their compensation. However, little attention has been given to the extent to which firms communicate with their employees in relation to such benefits. This study proposes that benefit communication can have both direct and indirect positive effects on employees’ benefit level satisfaction. The effects of benefit communication were examined by means of a survey among 828 employees of different Spanish firms. This study hypothesized and found that benefit communication led to increased benefit level satisfaction. Similarly, this study found that benefit communication can influence benefit level satisfaction through the multiple intermediating effects of employees’ perceived organizational support and employees’ comparison of their benefits with those of referent others. These results imply that academics and practitioners must pay attention to providing adequate benefit communication in order to ensure the effectiveness of benefits.