Pay Satisfaction and Employee Commitment in Expatriates Owned Businesses in Ghana

Abstract

The purpose of this work is to examine the influence of pay satisfaction on the three dimensions of employee commitment (affective, normative and continuance) among employees of expatriates owned businesses in Ghana. The sample for this study was limited to the local employees of these expatriates owned businesses. A sample of 222 responses were retrieved from seven expatriate owned companies in North Kaneshie Industrial Area, Accra and used for the analysis. Simple linear regression was used to analyse data through the aid of the Statistical Package for Social Sciences version 22. The findings revealed that pay satisfaction had influence on employee affective commitment, pay satisfaction also had significant positive impact on employee normative commitment. However, pay satisfaction had a negative influence on employee continuance commitment. So when employees in these organisations are satisfied with pay, it enhances their overall affective and normative commitment to their organisation except for continuance commitment which seems to be negatively influenced by employee pay satisfaction. Recommendations from the findings of this study include management of expatriate owned businesses reviewing their pay systems regularly and implementing better schemes leading to higher pay satisfaction for their indigenous workers.