The Role of Organizational Justice in Pay and Employee Benefit Satisfaction, and its Effects on Work Attitudes

Abstract

The objective of our study is to provide a complementary approach with regard to organizational justice in the domain of compensation. It presents research undertaken on a sample of 285 employees in three different Canadian organizations. The results reveal that employees distinguish clearly between pay satisfaction and benefit satisfaction, and that distributive justice perceptions are better predictors of pay satisfaction than procedural justice perceptions. This result is reversed for employee benefit satisfaction: Procedural justice perceptions are better predictors than distributive justice perceptions. Lastly, the results show that distributive justice perceptions with regard to pay play a more important role than procedural justice in job satisfaction and satisfaction with the organization.