Do wage and wage satisfaction compensate for the effects of a dissatisfying job on life satisfaction?

SA Journal of Industrial Psychology ISSN: (Online) 2071-0763, (Print) 0258-5200 Page 1 of 11 Original Research Do wage and wage satisfaction compensate for the effects of a dissatisfying job on life satisfaction? Authors: Jacob A. de Coning1 Sebastiaan Rothmann1 Marius W. Stander2 Affiliations: 1 Optentia Research Focus Area, North-West University, South Africa School of Industrial Psychology and Human Resource Management, North-West University, South Africa 2 Corresponding author: Sebastiaan Rothmann, Dates: Received: 20 May 2018 Accepted: 03 Sept. 2018 Published: 10 Jan. 2019 How to cite this article: De Coning, J.A., Rothmann, S., & Stander, M.W. (2019). Do wage and wage satisfaction compensate for the effects of a dissatisfying job on life satisfaction? SA Journal of Industrial Psychology/SA Tydskrif vir Bedryfsielkunde, 45(0), a1552. https://doi. org/10.4102/sajip.v45i0.1552 Copyright: © 2019. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License. Read online: Scan this QR code with your smart phone or mobile device to read online. Orientation: Research regarding subjective well-being (including life satisfaction and domainspecific satisfaction) is necessary, given the effects thereof on health, work performance, social relationships and ethical behaviour of employees. Research purpose: This study aimed to investigate the relationships among life satisfaction, job satisfaction and wage satisfaction, as well as how these relationships related to gross wage category in a South African sample. Motivation for the study: While research has shown that wage level and wage satisfaction are positively associated with both job and life satisfaction, the question arises whether wage level and satisfaction would compensate for the negative effect of a dissatisfying job on life satisfaction. Research approach/design and method: A cross-sectional design was used. A non-probability convenience sample (N = 763) in the form of the WageIndicator data set was obtained. Hierarchical log-linear analyses and cross-tabulations were carried out to determine the relationships that existed among the constructs. Main findings: Although job satisfaction and wage satisfaction were strongly related at a low level of wage satisfaction, fewer people were satisfied with their jobs at a high level of wage satisfaction level. Moreover, while job and life satisfaction were strongly related at a low level of job satisfaction level, relatively fewer people were satisfied with their lives at a high level of job satisfaction level. Wage dissatisfaction was associated with dissatisfaction with life but was more strongly associated with life satisfaction at a high level of wage satisfaction. Wage category and wage satisfaction did not interact with the job satisfaction level in affecting life satisfaction. Practical/managerial implications: Managers should attend to the perceptions of wage dissatisfaction at low wage and wage satisfaction levels. Such dissatisfaction may have a negative impact on the job and life satisfaction of employees and result in detrimental effects on employees and organisations. Contribution/value-add: This study contributes to scientific knowledge regarding the relationships between wage, wage satisfaction, job dissatisfaction and life satisfaction. Introduction Subjective well-being captures an individual’s subjective assessment of his or her own life (Diener & Seligman, 2004). Such assessment includes satisfaction with one’s life, satisfaction with specific domains of one’s life (e.g. one’s job) and levels of positive and negative affect. High levels of subjective well-being lead to better health, better work performance, better social relationships and more ethical behaviour (Lyubomirsky, King, & Diener, 2005). Financial concerns have a strong influence on employees’ work behaviour (Chapman, Uggerslev, Carroll, Piasentin, & Jones, 2005). There has been a debate about the link between wages, wage satisfaction, job satisfaction and satisfaction with life. Research has shown that income may increase overall life satisfaction (Stevenson & Wolfers, 2008), rather than day-to-day feelings of happiness (Kahneman & Deaton, 2010). Furthermore, various theories and models, for example, equity theory (Al-Zawahreh & Al-Madi, 2012), the neoclassical utility model (Devereux & Engel, 2003) and the income inequality model (Hagerty & Veenhoven, 2003), support the association between job and life satisfaction. However, there are conflicting views regarding the effect of wages on life satisfaction. Some authors claim that wages do not significantly increase life Note: This article is partially based on the author’s dissertation for the Bachelor of Commerce Honours at the North-West University, South Africa with supervisor Prof. Marius Stander and co-supervisors Prof. Ian Rothmann and Prof. Ruut Veenhoven, received May 2016, available here: http://dspace.nwu.ac.za/bitstream/handle/10394/17115/De%20Coning_JA.pdf?isAllowed=y&sequence=1 http://www.sajip.co.za Open Access Page 2 of 11 satisfaction after a set amount (Kahneman & Deaton, 2010), while others claim that wages raise life satisfaction without bound (Stevenson & Wolfers, 2008). Past research focused primarily on the impact of pay on job satisfaction (Clark, Kristensen, & Westergård-Nielsen, 2009; Danish & Usman, 2010) and the relationship between job and life satisfaction (Judge, Bono, Erez, & Locke, 2005; Judge, Locke, Durham, & Kluger, 1998). Few studies include an examination of the three constructs simultaneously. Furthermore, interactions between these constructs might exist. More specifically, while it seems that wage level and wage satisfaction are positively associated with both job and life satisfaction, the question arises whether wage level and satisfaction would compensate for the negative effect of low job satisfaction on life satisfaction. This study investigated the complex relationships among wage category (derived from a gross wage), wage satisfaction, job satisfaction and life satisfaction and examined the interactions between these constructs. Life satisfaction, job satisfaction, wage satisfaction and wage level Life satisfaction refers to an overall positive evaluation of the quality of one’s life (Saris, Veenhoven, Scherpenzeel, & Bunting, 1996) or the subjective enjoyment of life (Veenhoven, 2014). Overall evaluations of one’s life, as well as day-to-day feelings of happiness, both independently contribute to overall life satisfaction (Rojas & Veenhoven, 2013). Satisfaction with life is a broad concept that goes beyond satisfaction with individual life domains, although it may be affected by these domains. Satisfaction with one’s job and wages, for example, may contribute to life satisfaction, but it does not automatically indicate its existence (Saris et al., 1996). Employees’ satisfaction with life seems to be a result of their expectations and the fulfilment (...truncated)