The Effects of Employee Recognition, Pay, and Benefits on Job Satisfaction: Cross Country Analysis of Pakistan, China and Saudi Arabia

Abstract

This paper analyzes the effect of employee recognition, pay, and benefits on job satisfaction. In this cross-sectional study, survey responses from university students in the Pakistan (n = 450), China (n = 340) and Saudi Arabia (n = 399) were analyzed. Employee recognition, pay, and benefits were found to have a significant impact on job satisfaction, regardless of home country income level (high, middle or low income) and culture (collectivist or individualist). However, the effect of benefits on job satisfaction was significantly more important for China. respondents than for respondents from Pakistan and Saudi Arabia. The authors conclude that both financial and nonfinancial rewards have a role in influencing job satisfaction, which ultimately impacts employee performance. Theoretical and practical implications for developing effective recruitment and retention policies for employees are also discussed.