The Effect Of Salary Fairness On The Employee Engagement

With rapid development of the economy and improvement of living standards, our cognition, attitude, behavior and values have been changed continuously, however, a good tradition, loyalty to work is weakening. Hay Group, a world’s famous management consulting company, has found that, In Chinese company, engagement of the employee is only 51%,even 15% lower than that of the global average. It means that one in two people is not engagement in their job. Although engagement is influenced by many factors, researchers have found that the most influential factors are salary and benefits. Until now, in China,researches in engagement are still in preliminary stage, which are mostly based on the theory of foreign scholars commonly focusing on the common employees, without many specific studies on bank employees. In addition, the previous researches always proposed pay fairness perception as one general factor that influences engagement, lacking special attention.Based on study of previous references, this research takes bank employees as rese arch objects to investigate the mediation effect of work ethics between the relationship of engagement and pay fairness perceptions through researcher method. We proposed that:1. Significant differences are showed in pay fairness perceptions, work ethics and employee engagement among different kinds of Bank employees.2. There is a remarkable positive correlation among pay fairness perceptions, work ethics and employee engagement. Pay fairness perceptions can positively predict work ethics and engagement, while work ethic can positively predict engagement.3. Work ethics functions as the mediation when pay fairness perceptions influence engagement.Studies have shown that employee engagement that is critical to the long-term development of the Bank,and sense of fair remuneration and work ethic are positive engagement.Therefore,bank managers should stand in employee perception in terms of pay equity,job ethics impact on employees,by perfecting the organization system,communication channels,assessment system and fair compensation system to improve Employee engagement and development in favour of bank.