The purpose of this study was to examine the influence of individual characteristics and organizational justice on employee benefit satisfaction, and to explore the role of flexible benefit plans. Employees from three Canadian organizations were surveyed. A total of 285 usuable questionnaires were returned, for a response rate of 42%. The variables in the model accounted for more than 40% of the variance in benefit satisfaction. The findings showed that while distributive and procedural justice were useful in predicting benefit satisfaction, the concept of process justice had the greatest effect on satisfaction. Among the variables, communication had the greatest impact. The effect of flexibility, although significant, was ambiguous. Sociodemographic factors had a very limited effect when perceptual variables were introduced into the equation. The paper also sets out the limitations of the study and its practical implications, and makes some suggestions for future research.
ADAMS, J. S.Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental and social psychology (Vol. 2). New York: Academic Press, 1965, pp. 267-299.
2.
ALEXANDER, S., & RUDERMAN, M.The role of procedural and distributive justice in organizational behavior, Social Justice Research, 1987, 1, 1401-1420.
3.
BAKER, C.Flex your benefits. Personnel Journal, 1988, 67(5), 54-61.
4.
BALKIN, D., & GRIFFETH, R.The determinants of employee benefit satisfaction. Journal of Business and Psychology, 1993, 7(3), 323-339.
5.
BARBER, A., DUNHAM, R., & FORMISANO, R.The impact of flexible benefits on employee satisfaction: A field study. Personnel Psychology, 1992, 4555-75.
6.
BAROCAS, V.Benefit Communications: Enhacing the Employer's Investment. theConference Board, Report Number 1035, 1993,52-52 pp.
BERGMANN, T., BERGMANN, M., & GRAHN, J.How important are employee benefits to public sector employees. Public Personnel Management, 1994, 23(3), 397-406.
9.
BERKOWITZ, L., FRASER, C., TREASURE, P., & COCHRAN, S.Pay, equity, job gratifications, and comparaisons in pay satisfaction. Journal of Applied Psychology, 1987, 72(4), 544-551.
10.
BESSER, L., & FRANCK, G.Artificial intelligence and flexible benefits decision: Can expert systems help employees make rational choice?Advance Management Journal, 1989, 54(2), 4-9, 13-13.
11.
BLAU, G.Testing the effect of level and importance of pay referents on pay level satisfaction, Human Relations, 1994, 47(10), 1251-1268.
12.
BRANNICK, M.Critical comments on applying covariance structure modeling. Journal of Organizational Behavior, 1995, 27(1), 56-72.
13.
CABLE, D., & JUDGE, T.Pay preference and job search decisions: A person-organization fit perspective. Personnel Psychology, 1994, 47, 317-348.
14.
CAVAGNAC, M., & SIRE, B.Remuneration cafeteria et engagement de l'employeur. Revue de Gestion des Ressources Humaines, 1994, 12, 17-25.
15.
DAILEY, R. C., & KIRK, D. J.Distributive and procedural justice as antecedent of job dissatisfaction and intent to turnover. Human Relations, 1992, 45(3), 305-317.
16.
DANEHOWER, C., & LUST, J.A conceptual model of the determinants of employee benefit satisfaction. Human Ressource Management Review, 1992, 3(3), 221-238.
17.
DANEHOWER, C., CELUCH, K., & LUST, J.Benefits management and communication: A marketing orientation. Human Resource Management Review, 1994, 4(2), 177-195.
18.
DAVIS, E., & WARD, E.Health benefit satisfaction in the public and private sectors: The role of distributive and procedurale justice. Public Personnel Management, 1995, 24(3), 255-270.
19.
DARLINGTON, R.Multiple regression in psychological research and practice. Psychological Bulletin, 1968, 69, 161-182.
20.
DREHER, G., ASH, R., & BRETZ, R.Benefit coverage and employee cost: Critical factors in explaining compensation satisfaction. Personnel Psychology, 1988, 41, 237-254.
21.
DRIVER, R. W.A determination of the relative efficacy of different techniques for employee benefit communication. Journal of Business Communications, 1980, 17, 23-37.
22.
DYER, L., & THERIAULT, R.The determinants of pay satisfaction. Journal of Applied Psychology, 1976, 61(5), 596-604.
23.
FARH, J., GRIFFIN, R., & BALKIN, D.Effect of choice of pay plans on satisfaction, goals setting, and performance. Journal of Organizational Behavior, 1991, 12, 55-62.
24.
FOLGER, R., & GREENBERG, J.Procedural Justice: An interpretive analysis of personnel systems. Research in Personnel and Human Resources Management, 1985, 13, 141-183.
25.
FOLGER, R., & KONOVSKY, M. A.Effect of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 1989, 32(1), 1989, 115-130.
26.
GERHART, B., & MILKOVICH, G.Employee compensation: Research and pratice. In M. D. Dunette & L. M. Hough (Eds.), Handbook of Industrial and organizational psychology (Vol. 3). Palo Alto, CA: Consulting Psychologist Press, 1992, pp. 481-569.
27.
GOMEZ-MEJIA, L., BALKIN, D., & CARDY, R.Managing human resources. Prentice Hall, 1995, 690-690 pp.
GOODMAN, P. S.An examination of referents used in the evaluation of pay. Organizational Behavior and Human Performance, 1974, 12, 170-195.
30.
GREENBERG, J.The quest for justice on the job. Sage Publications, 1996, 428-428 pp.
31.
GREENBERG, J.Organizational justice: Yesterday, today, and tomorrow. Journal of Management, 1990, 16(2), 399-432.
32.
HAAR, J., & KOSSACK, S.Employee benefit packages: How understandable are they?Journal of Business Communications, 1990, 27, 185-200.
33.
HARRIS, M., & FINK, K.Employee Benefits: Future Directions for Research. Paper presented at the 52nd Annual Meeting of Academy of Management, Las Vegas, 1992.
34.
HARRIS, M. M., & FINK, K.Employee benefit programs and attitudinal and behavioral outcomes: A preliminary model. Human Resource Management Review, 1994, 4(2), 117-129.
35.
HEMMASI, M., GRAF, L., & LUST J.Correlates of pay and benefit satisfaction: The unique case of university faculty. Public Personnel Management, 1992, 21(4), 429-442.
36.
HEWITT ASSOCIATES. Canadian flexible benefit programs and practices. Hewitt Associates LLC, 1995, 31-31.
37.
HILL, F.The relevant other in pay comparisons. Industrial Relations, 1980, 19(3), 345-351.
38.
HORNSBY, J., KURATKO, D., & WALLINGFORD, C.Flexible benefit plans in smaller firms. Compensation & Benefits Management, 1991, 7(2), 14-20.
39.
JAMES, L., & BRETT, J.Mediators, moderators, and tests of a theory. Journal of Applied Psychology, 1984, 69, 307-321.
40.
JENKINS, D., & LAWLER, E.Impact of employee participation in pay plan development. Organizational Behavior and Human Performance, 1981, 28111-128.
41.
INSTITUT DE RECHERCHE ET D'INFORMATION SUR LA REMUNERATION (I.R.I.R.). La comparaison de la rimuniration globale des salaires de l'administration quibicoise et des autres salaries quibecois. Dixieme rapport dur les constatations de LI.R.I.R. Partie 1, Mai 1994.
42.
JUDGE, T. A.Validity of the dimensions of pay satisfaction questionnaire: Evidence of differential prediction. Personnel Psychology, 1993, 46, 331-355.
43.
KONOVSKY, M., FOLGER, R., & CROPANZANO, R.Relative effects of procedural and distributive justice on employee attitudes. Representative Research in Social Psychology, 1987, 17(1), 15-23.
44.
KROLL, M., & DOLAN, J.Cafeteria benefit plans: A concept that fits the changing face of work. Sam Advanced Management Journal, 1985-1986, 50-514-9.
45.
LENGNICK-HALL, M. L., & BEREMAN, N. A.A conceptual framework for the study of employee benefits. Human Resource Management Review, 1994, 4(2), 101-115.
46.
LEVENTHAL, G.What should be done with equity theory. In K. J. Gergen, M. S. Greenberg, & R. H. Willis (Eds.), Social exchange: Advances in theory and research. New York: Plenum, 1980, pp. 27-55.
47.
LIND, E., & TYLER, T.The social psychology of procedural justice. New York, Plenum Press, 1988, 267-267 pp.
48.
LOCKE, E.The nature and causes of job satisfaction. In M. D. Dunette (Ed.), Handbook of industrial and organizational psychology, Chicago: Rand McNally, 1976.
49.
LUST, J.Correlates of employee benefit satisfaction. Proceedings of the Southem Management Association 1987 Annual Meeting, 112-114.
50.
LUST, J.The determinants of employee fringe benefit satisfaction: A replication and revision. Benefits Quarterly, 1990, 6, 89-95.
51.
LUST, J., & DANEHOWER, C.The Dimensionality of Employee Benefit Satisfaction. Paper presented at the 1992 Annual Meeting of the Academy of Management, 1992, 25-25 pp.
52.
McCAFFERY, R.Employee benefit programs: A total compensation perspective. Boston: PWS-Kent, 1988, 250-250 pp.
53.
MICELI, M., & LANE, M.Antecedents of pay satisfaction: a review and extension. Research in Personnel and Human Resources Management, 1991, 9, 235-309.
MILKOVICH, G., STURNAN, M., & HANNON, J.Using expert systems to aid employees' flexible benefits decisions. ACA Journal, 1994, 3(1), 18-29.
56.
MULVEY, P.Predicting Pay and Benefit Satisfaction: Can One Model Fit All Dimensions? Paper presented at the 52nd Annual Meeting of Academy of Management, Las Vegas, August 1992.
57.
POILPOT-ROCABOY, G.La satisfaction des individus a 1'6gard de la protection sociale complementaire d'entreprise. Revue de Gestion des Ressources Humaines, 1995, 16, 25-35.
58.
RABIN, B.Assessing employee benefit satisfaction under flexible benefit. Compensation and Benefits Management, 1994, 10(3), 33-44.
59.
RONEN, S.Equity perception in multiple comparaisons: A field study. Human Relations, 1986, 39(4), 333-346.
60.
ROSE, R.Taking control of benefits. Across the Board, 1988, 7 and 8, 49-52.
61.
RYLAN, E., & ROSEN, D.Attracting job applicant with flexible benefits. Personnel, 1988, 65(3), 71-73.
62.
SCARPELLO, V., & JONES, F.Why justice matters in compensation decision making. Journal of Organizational Behavior, 1996, 17, 285-299.
63.
SCARPELLO, V., VANDENBERG, R., & HUBER, V., Compensation satisfaction: Its measurement and dimensionality. Journal of Applied Psychology, 1988, 73(2), 163-171.
64.
SCHOLL, R., COOPER, E., & McKENNA, J.Referent selection determining equity perceptions: Differential effects on behavioral and attitudinal outcomes. Personnel Psychology, 1987, 40, 113-124.
65.
SHEPPARD, B., & LEWICKI, R.Toward general principles of managerial fairness. Social Justice Research, 1987, 1(2), 161-176.
66.
SIRE, B.Gestion stratégique des reimunirations, France: Editions liaisons, 1993.
67.
SHEPPARD, B., LEWICKI, R., & MINTON, J.Organizational Justice. New York: Lexington Books, 1992, 227-227 pp.
68.
SUMMERS, T., & HENDRIX, W.Modelling the role of pay equity perceptions: A field study. Journal of Occupational Psychology, 1991, 64, 145-157.
69.
SUMMERS, T., & DENISI, A.In search of Adams' other: Reexamination of referents used in the evaluation of pay. Human Relations, 1990, 43(6), 497-511.
70.
SWEENEY, P.Distributive justice and pay satisfaction: A field test of an equity theory prediction, Journal of Business and Psychology, 1990, 4(3), 329-341.
71.
SWEENEY, P., & McFARLIN, D.Workers evaluation and the end and the means: An evaluation of four models of distributive and procedural justice. Organizational Behavior and Human Decision Processes, 1993, 55, 23-40.
72.
THERIAULT, R.Guide Mercer sur la gestion de la rimuniration: Thiorie et pratique. Chicoutimi: G. Morin, 1991, 589-589 pp.
73.
THIBAULT, J., & WALKER, L.Procedural justice: A psychological analysis. Hillsdale, NJ: Erlbaum, 1975, 145-145 pp.
74.
TREMBLAY, M., & ROUSSEL, P.Modelling the Role of Organizational Justice: Satisfaction and Attitudes to Collectice Action. Working paper, Hautes Etudes Commerciales, Montreal, 1996, 27-27 p.
75.
TREMBLAY, M., St.-ONGE, S., & TOULOUSE, J. M.Determinants of salary referents relevance: A field Study of Managers. Journal of Business and Psychology, 1997, 11(4), 463-484.
76.
WILLIAMS, M. C.Antecedents of employee benefit level satisfaction: A test of a model. Journal of Management, 1995, 21(6), 1097-1128.
77.
WEINER, N.Determinants and behavioral consequences of pay satisfaction: A comparison of two models. Personnel Psychology, 1980, 33, 741-757.
