Exploring The Effect Of Pay Satisfaction On The Productivity Of Permanent Employees At Tarlac Agricultural University

Abstract

This study explored the effect of pay satisfaction on the productivity of permanent employees at Tarlac Agricultural University, encompassing both teaching and non-teaching staff. Pay satisfaction reflects an individual's contentment with their compensation, while employee productivity denotes the output and performance levels exhibited by employees. Understanding the effect between these variables is crucial for organizations and imstitutions aiming to enhance motivation and performance.

Data were collected from 171 university employees, and the study analyzed their demographic profiles, including age, gender, legal status, highest educational attainment, department, and length of employment. The overall level of pay satisfaction among permanent employees was measured with a weighted mean of 3.08, indicating general satisfaction with their income. Similarly, employee productivity had a weighted mean of 3.94, suggesting that employees are performing their roles satisfactorily.

The Pearson Coefficient Correlation was employed to assess the relationship between pay satisfaction and productivity. The results revealed a slight positive correlation, indicating a small but notable link between higher pay satisfaction and increased productivity. This suggests that employees who are content with their compensation tend to exhibit better performance in their roles.

The findings highlight the importance of pay satisfaction as a significant factor in enhancing employee productivity. Institutions and organizations can leverage these insights to design policies and practices that ensure competitive and fair compensation, ultimately fostering a more motivated and effective workforce. By addressing pay satisfaction, Tarlac Agricultural University and similar institutions can potentially improve employee performance and satisfaction, contributing to overall institutional success.