Empirical Study On The Relationship Among Compensation Strategy, Compensation Fair Conception And Employee's Loyalty In Chinese Companies

At the age of knowledge economy, humane resource is the most active factor, and how to enhance the employee's loyalty is the key of an enterprise's continual development. Generally, it's believed that more compensation can bring higher degree of loyalty. No doubt that the compensation is the most basic and direct way to encourage staff, but in practice, there is an argument about it. The study focused on the relationship among the strategic characteristics of compensation programs, the compensation fair perception and the employee's loyalty. On the basis of previous related research, some constructive work was done as follows.1. According to the aim of this research, the conception of employee's loyalty and a set of scales were provided in this paper on the basis of previous articles.2. The scales of the strategic characteristics of compensation programs, the scales of the compensation fairness perception and the scales the employee's loyalty were verified at the background of Chinese culture and economy.3. The relationship among the strategic characteristics of compensation programs, the compensation fairness perception and the employee's loyalty were discussed in Chinese companies. And we studied the relationship under the factors such as different employee's characteristics.4.Dicussed the different impact of compensation factors on employer's loyalty based on different employer's characristics.There were two hundred and seventy valid samples from seventeen companies got from questionnaire survey. The factor Analysis, Structural Equation Modeling, Regression Analysis and Analysis of Variance (general liner modeling) were used in this paper, and those calculations were done on the software of SPSS11.5 and AMOS 4.0. The hypotheses were largely supported. The main results were showed as follows.1. The compensation program's strategic characteristics included pay level positioning, job-evaluation-based pay, pay-for-performance and pay mix.2. The justice included distributive justice and procedural justice.3. The employee's loyalty included work-based loyalty, team-based loyalty, enterprise-based loyalty and profit-based loyalty.4. The justice had significant effects in the relationship of compensation program's strategic characteristics and employee's loyalty. That's say, compensation program's strategic characteristics firstly affected the justice and then to employee's loyalty.5. The compensation program's strategic characteristics and the employee's loyalty had a significant influence. The compensation program's strategic characteristics affected employee's loyalty directly.6. The distributive justice and procedural justice predicted part of the employee's loyalty through the perception of compensation fair.7. The employee's characteristics affected the relationship between factors related compensation and employee's loyalty. The specific results were showed as following. Higher education degree the employee gain, more intensive the effect of pay level positioning to team-based loyalty. Younger the employee was, more intensive the effect of procedural justice to team-based loyalty. Higher education degree the employee gain, more intensive the effect of procedural justice to team-based loyalty.