Pay referent comparison and pay level satisfaction

Abstract

PurposeThe purpose of this paper is to examine satisfaction level among food retail employees concerning their pay and to compare pay referent and pay level satisfaction of employees in supermarkets and discount stores in the UK.Design/methodology/approachA questionnaire was used to gather data from a sample of 246 higher, middle level management and shop floor staff. The study selected ten leading retail organisations, five each from the supermarket and discount sectors. All had strong perceived image and quality, selling both national and own‐brands. All were located in London.FindingsThe study revealed that generally, UK retail employees are not satisfied with their pay. However, supermarket employees recorded higher levels of satisfaction compared with their counterparts in the discount stores.Research limitations/implicationsThe results are limited to the UK food retail sector and, therefore, should not be generalised or be regarded as an indication of the general reaction of the UK workers in this area of study.Practical implicationsThe UK grocery retailers may need to review their general approach to employee reward systems in order to induce pay level satisfaction among their employees.