The Pay Structure for Task Performance in the Hospitality Industry: The Role of Pay Satisfaction

Abstract

Basic wages in the hospitality industry are often lower than other industries, which also cause lower equity ratios of input and output comparing to other industries. If all pay structure factors are positive related to pay satisfaction and task performance need to be questioned. This paper demonstrated the effects of pay structure in the hospitality industry and built a comprehensive model of pay structure, pay satisfaction, and task performance. 311 usable questionnaires from hotel employees were collected. The results show the direct and indirect relation among pay structure, task performance, and pay satisfaction. There are also moderation effects from the comprehension model.