Predictors of job satisfaction : the role of income
Creators: name: Wilson Joseph, Elina
Publisher: name: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Year: 2024
Subjects: 158: Angewandte Psychologie
331: Arbeitsökonomie

description: The importance of satisfaction in our workplace is undeniable, as we spend a vast majority of our lifetime at work. While we aspire to earn more, the question arises: Will this trulymake us happy at our workplace, or are it much more our colleagues and other incentives that excite us to go to work? 
With this in mind, this study employs the Herzberg Two-Factor Theory to untangle the complex relationship between income and job satisfaction in the Swiss labor market. The goal of this study is to make predictions regarding the various factors that influence job satisfaction and to challenge the Herzberg Theory, which suggests that income solely acts as a hygiene factor. This means that income does not enhance job satisfaction but can lead to significant dissatisfaction if perceived as inadequate. The study uses multiple linear regression models to investigate the possible predictors of job satisfaction, including income, satisfaction with colleagues, engagement with tasks, and opportunities for promotion. The most recent data from the 24th wave (2022) of the Swiss Household Panel, which includes a diverse demographic of employed individuals in Switzerland ranging in age from 16 to 65, is used for this study. 
Using multiple linear regression, the study detected a negative prediction of income on job satisfaction, indicating that higher income levels might not enhance but could decrease the level of satisfaction at the workplace. This suggests rethinking Herzberg's hygiene factor classification of income. The research suggests that the role of income in job satisfaction may be more complex and occasionally act similarly to a motivator. This implies that income can both prevent dissatisfaction and enhance satisfaction under certain circumstances, challenging the traditional dichotomy outlined in Herzberg's theory. 
Additionally, the analysis highlights the predictive significance of non-monetary aspects of work. Job satisfaction is highly associated with colleague satisfaction and task engagement, indicating that interpersonal relationships and meaningful work tasks are crucial. Also, promotional opportunities are identified as significantly predictive, with clear paths to career advancement positively influencing employee sentiment toward their jobs. The implications of these findings are significant for organizational strategy and also for policy development. Organizations are encouraged to reconsider their competitive salaries, as it alone is insufficient for fostering deep job satisfaction. Increasing employee satisfaction and retention requires the improvement of job roles, creating a positive organizational culture, and offering clear career paths. This study facilitates policymakers in encouraging companies not only to improve salary structures but also work quality and development opportunities. 
The research challenges several commonly held beliefs regarding the relationship between income and job satisfaction. Swiss firms can improve individual and organizational performance by considering both financial and non-financial variables, which can lead to amore productive and stable labor market.