Merit-based Rewards, Job Satisfaction and Voluntary Turnover: Moderating Effects of Employee Demographic Characteristics

Fabian Jintae Froese, Vesa Peltokorpi, Arup Varma, Azusa Hitotsuyanagi-Hansel

Research output: Contribution to journalArticlepeer-review

32 Citations (Scopus)


This paper draws on the reflection theory of compensation (Thierry, H. (1998). ‘Compensating work’. in P. J. D. Drenth, H. Thierry and C. J. de Wolff (eds), Handbook of Work and Organizational Psychology, 2nd edn, pp. 291–315, Psychology Press: Hove; Thierry, H. F. (2001). ‘Job evaluation systems and pay grade structures: do they match’, International Journal of Human Resource Management, 8, pp. 1313–1324) to examine the influence of individual merit-based rewards on voluntary turnover via job satisfaction. It also tests the moderating effects of employees’ gender, age and education level between merit-based rewards and job satisfaction. Data were collected from 636 employees in Japan at three points in time over a 12-month period. The findings show that merit-based rewards have a direct, positive effect on job satisfaction and an indirect effect on voluntary turnover. The effect of merit-based rewards on job satisfaction was moderated by gender and education, providing evidence that merit-based rewards are more important for male and highly educated employees. Practical and theoretical implications are discussed.

Original languageEnglish
Pages (from-to)610-623
Number of pages14
JournalBritish Journal of Management
Issue number3
Publication statusPublished - 2019 Jul

Bibliographical note

Publisher Copyright:
© 2018 British Academy of Management

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation


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