Title: A Study of The Impact of Employee Salary Disparities on Enterprise Performance in Tencent
Author: Zhou Zehao
Advisor: Dr. Zhang Li
Degree: Master of Business Administration
Major: Finance and Accounting
Faculty: บัณฑิตวิทยาลัย (Graduate School)
Academic year: 2567 (2024)
Published: The 8th STIU International Conference “TechVision Leadership: Fostering Social Sustainability” July 4-5 2024 (pp.194-203) Proceedings PDF
Abstract
This study explored the impact of employee salary disparities on enterprise performance, taking Tencent as a case study. The research addressed the specific issue of how variations in salary distribution affect organizational outcomes. The objectives of this study were: 1) To examine the relationship between salary disparity level and enterprise performance, 2) To examine the relationship between salary satisfaction and enterprise performance, 3) To examine the relationship between perceived salary fairness and enterprise performance.
Grounded in the Equity Theory, which posits that employees assess fairness based on the ratio of their inputs to outputs compared to others, this study adopted the quantitative research methodology. A questionnaire was distributed to a stratified random sample of 600 Tencent employees, with 470 valid responses collected. Descriptive statistics, correlation analysis, and multiple regression analysis were used to analyze the data and test the hypotheses.
The results of the study reveal that there is a moderate negative correlation between salary disparity level and enterprise performance, indicating that as salary disparities increase, the overall performance of the organization tends to decrease. In contrast, the analysis shows a significant positive relationship between salary satisfaction and enterprise performance, meaning that higher levels of employee satisfaction with their salaries lead to better organizational performance outcomes. Additionally, the findings demonstrate a strong positive impact of perceived salary fairness on enterprise performance, suggesting that when employees believe their compensation is fair compared to their peers, the organization experiences higher levels of efficiency, productivity, and financial success. These findings support the study’s hypotheses and highlight the critical role of maintaining equitable and satisfactory compensation practices to enhance organizational performance.
Based on these findings, three strategic recommendations are proposed: reducing salary disparities through regular salary audits and adjustments, enhancing salary satisfaction with competitive and performance-based compensation packages, and improving perceptions of salary fairness through transparent and participatory salary decision processes. These strategies aim to address the identified issues, foster a more motivated workforce, and ultimately improve enterprise performance.
Keywords: salary disparity, employee satisfaction, equity theory, enterprise performance
A Study of The Impact of Employee Salary Disparities on Enterprise Performance in Tencent
6517195819 Zhou Zehao 2567 (2024) A Study of The Impact of Employee Salary Disparities on Enterprise Performance in Tencent สารนิพนธ์ (Independent Study), Advisor: Dr. Zhang Li, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, Finance and Accounting, Bangkok: Siam University