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Abstract
This study examined individual differences (need for achievement and propensity for risk) among employees who are compensated through variable and fixed methods of compensation. Furthermore, this study examined how these differences influence pay satisfaction. The 62 participants were from a large financial services company.
The study hypothesized that there would be a significant difference in achievement levels between employees paid through fixed and variable methods of compensation, that the propensity for risk would be higher among employees paid by a variable method, and that there would be a three-way interaction between need for achievement, risk, and pay satisfaction.
Of the three hypotheses, partial significance was shown on Hypothesis 3. Significance was shown through a main effect for pay type and an interaction between need for achievement and type of pay on pay satisfaction.
