Pay satisfaction, pay for performance and job performance

The objective of this study is to examine the influence of pay for performance and pay
satisfaction on job performance. This study was conducted among employees in manufacturing companies in the northern region of Peninsular Malaysia. A total of 250 questionnaires were distributed and only 140 questionnaires were returned and used for data analysis. The data was analyzed using the Statistical Packages for Social Science (SPSS ver. 20). Based on the regression analysis results, the findings reported that pay for performance is significantly related to job performance
(β= 0.237, P < 0.05) while pay satisfaction is not significantly linked to job performance.
(β= 0.045, P < 0.05). Drawing on the findings, discussions elaborated on the importance of pay for performance in predicting job performance of employees. Theoretical and practical implications as well as limitations and directions for future research are also highlighted.