Exploring the influence of remuneration attitudes and financial scarcity on employee engagement and job satisfaction

Abstract

This study explores the influence of remuneration attitudes and perceived financial scarcity (PFS) on employee engagement and job satisfaction within the South African second-hand automotive industry. This study is guided by the Job Demands-Resources (JD-R) model, where remuneration attitudes (i.e., perceived fairness and performance pay linkage) is a job resource, and PFS as a personal demand influencing employee outcomes. The study adopted a quantitative, cross-sectional design, where data was collected via validated instruments including the Utrecht Work Engagement Scale (UWES), Job Satisfaction Scale (JSS), Procedural and Distributive Justice Scales and Psychological Inventory of Financial Scarcity (PIFS). The findings show that perceived fairness significantly influenced engagement and satisfaction in relation to other variables. The results highlight the importance of transparency, and equitable remuneration systems buffering effects of financial strain, especially in commission-based roles characterised by fluctuating income and high pressure environments. The study contributes to theory by including perceived financial scarcity into the JD-R framework.