An Analysis Of The Pay Gap’s Impact On Employee Engagement: The Difference Between Low Level And High Level

With the development of behavioral research, the relationship betweenemployees and the organization has increasingly become the focus of managementcommunity, especially the rise concern of employee engagement in recent years,which has become a new field of research in organizational management. More andmore surveys and studies show: Employee engagement is the real factor fororganizational performance which plays a key role. However, there are some aspects,such as the definition of employee engagement, measurement and other academics,which have not reached a consensus. As in the real economy, how to developstrategies to improve employee engagement is out of sight for business managers. Onthe other hand, pay as a basic material reward is still the primary means of motivatingemployees’ work enthusiasm. But when do not consider the contribution of eachemployee, leaving the average salary for all employees and business into aproportional change in the overall performance cannot achieve effective incentive,and also cannot achieve maximum efficiency. Developing company’s compensationsystem has always attracted the attention of theorists and practitioners. Reasonablepay mechanism will produce the pay gap between employees within the enterprise,and the pay gap issue directly affects the morale of employees, including whetheremployees work hard and dedicate, and thus affects the whole enterprise performance.In order to clarify the impact of the pay gap on employee engagement better, thispaper collected related theories of pay gap and engagement and made comprehensivesummary and comparative analysis firstly. Secondly, we got access to a large numberof existing achievements abroad on engagement and the latest research results tomake relatively rich and detailed exposition. Again, with field research methods, anempirical research was launched to research into the impact of pay gap on employeeengagement and findings showed that: when the gap between employees and aminimum salary of companies widens, employees are more likely to generate higherengagement; but when it comes to the gap between an employees’ wage and thehighest paid of the corporate, employee engagement levels are lower; former changerises faster than the rate of decline latter. Finally, this paper proposes measures toimprove employee engagement: helping employees build a career plan, establishfair and open pay system, creating a favorable and harmonious working environmentfor employees will help enterprises improve performance. In the end, hope that conclusions of this paper could provide exploratory ideasand information to show a correct understanding and knowledge of employeeengagement and could also contributes to help domestic managers improve employeeengagement.