Relationship between hospital employees' perception of compensation equity and work attitudes

Chung I. Huang, Kuo Cherh Huang, Chao Hsiun Tang, Ming Chin Yang, Che Ming Yang, Wei Jung Chang, Hui Chih Chang

Research output: Contribution to journalArticlepeer-review


Objectives: Compensation is widely acknowledged as an important feature of a job in the eyes of employees. Health care is a special industry in which compensation among employees differs greatly. The difference in compensation has an impact on employees' perception of job equity which may influence their work attitude and the quality of care provided. This study aimed to examine the relationship between hospital employees' perception of compensation equity and their work attitude. Methods: The study population included employees from one private regional teaching hospital and one municipal hospital in Taipei City. A structured questionnaire was sent to physicians, nurses, pharmacists, medical technicians, and administrative staff at the participating hospitals. A total of 2,000 questionnaires were distributed with 1,286 questionnaires being returned; an overall response rate of 64. 3%. The response rate of physicians was only 30%(97/321), and the result of Chi-square test indicated that the responding physicians could not represent the study population of physicians. As a result, physicians were not included in follow-up statistical analyses. The final sample size was 1,189, and the response rate was 62,5%, Descriptive statistics, ANOVA, correlation analysis, and multiple regression analysis were used in data analysis. Results: The results indicated that hospital employees' perception of compensation equity varies significantly according to personal characteristics, such as age and specialty. The design of the compensation system also has effects on employees' perception of compensation equity. Employees' work attitude differs by personal characteristics as well. Controlling for personal characteristics and the design of the compensation system, employees' work attitude was found significantly positively related to their perception of compensation equity. Compared to administrative staff, nurses had a more negative perception of compensation equity and worse work attitudes. Being a supervisor exerted positive influences on employees' perception of compensation equity and work attitude. Conclusions: Employees' work attitude was influenced by their perception of compensation eqiity, along with personal characteristics such as age and specialty, With this understanding, hospital administrators can design a more acceptable compensation system that will produce satisfactory and productive employees. Consequently, the quality of care provided and the health of people in Taiwan would be improved.

Original languageEnglish
Pages (from-to)55-68
Number of pages14
JournalTaiwan Journal of Public Health
Issue number1
Publication statusPublished - Feb 2003


  • Hospital employee
  • Perception of compensation equity
  • Work attitude

ASJC Scopus subject areas

  • Public Health, Environmental and Occupational Health


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