Attitudes Toward Pay Systems: An Exploratory Study Within and Across Cultures
- Marcela Peterson
- Dec 4, 2025
- 1 min read
Aminu Mamman
Mohamed Sulaiman
Alfadli Fadel
04/12/2025
Keywords: Pay systems, Culture, Compensation preferences, Cross-cultural comparison, Human Resource Management
The Study: This article examines how employees from four different countries assess the criteria used to determine compensation, focusing on factors such as performance, responsibility, education, seniority, and cost of living. Using a sample of 420 employees from Australia, Indonesia, Malaysia, and Hong Kong, the authors explore whether cultural, organizational, and demographic factors shape workers’ perceptions of fair and appropriate pay criteria. The analysis draws on theories of distributive justice, social comparison, and cultural values to interpret cross-national differences.
Main Results: Findings show that employees across all countries prefer pay systems based on multiple criteria rather than a single factor. Responsibility emerged as the most important criterion overall, while Australian respondents placed performance as their top priority. Indonesian and Malaysian participants valued responsibility more highly, whereas respondents from Hong Kong rated performance and responsibility similarly. Cultural differences appeared most clearly in the higher importance placed by Asian respondents on seniority and education. Individual characteristics, such as education level and hierarchical position, also influenced preferences.
Practical Implications: Organizations operating across borders should adopt flexible compensation systems capable of integrating various criteria and adjusting to local cultural and institutional expectations. Standardized pay models may not be effective in diverse contexts, whereas adaptable structures can enhance perceived fairness, acceptance, and overall effectiveness in international reward management.
Reference: Mamman, A., Sulaiman, M., & Fadel, A. (1996). Attitudes to pay systems: An exploratory study within and across cultures. The International Journal of Human Resource
Management, 7(1), 101–126.
Comments