A Study of Pay Satisfaction Consequences in the Egyption Public Banks

The purpose of this study is to identify the bank employees’ perceptions of pay satisfaction and its implications on work related attitudes such as affective commitment and intention to stay in or leave the bank. This study examines both the direct effect of pay satisfaction on stay intention as well as the indirect effect which is mediated by affective commitment, and is conducted at the context of the Egyptian public commercial banks, with a sample of 253 employees. The data is analyzed using structural equation modeling with AMOS program to test the four hypotheses derived from the research model. Based on the analysis results, all path coefficients in the model are positively significant and all the hypotheses are supported. The results show as well that the effect of pay satisfaction on stay intention is fully mediated by affective commitment. All these findings contribute to a better understanding of how each dimension of pay satisfaction differentially affect the employees’ level of commitment and their stay intention in the banking context. This study provides guidelines to help the management of public sector banks understand the importance of viewing pay satisfaction as a total package of pay level, pay raise, pay benefits, and pay structure and administration, in a successful retention plan, and also how to retain valuable employees and increase both their commitment and satisfaction towards their work.