ON PAY EQUITY IN LOGISTICS INDUSTRY IN MALAYSIA

Abstract

Pay equity is itself a problem that needs immense investigation and a solution to it as it had been debated much by the end of employees. Thus, the focus of current research is on the employee perception towards the pay equity within the logistics sector of Malaysia. The current research investigated the pay equity under the light of equity theory to prove that employees have a right to be paid according to the efforts exerted by them and skills thy acquired. The employee perception was represented through three variables in which they are; perceived job-based pay, perceived skill-based pay and perceived performance-based pay. These factors were developed from previous studies and literature to form the model of pay equity. To be more accurate, these factors are not the only ones play role in determining the relationship with pay equity.

The findings indicated that employee perception through perceived job-based pay, perceived skill-based pay and perceived performance-based pay was significantly related to pay equity. As per the results and p value at level 0.05, the job-based pay has the highest value as well as it paths coefficient. It showed job-based pay is the base for pay equity as it is a fix pay while skill-based pay and performance-based pay are best to be described as variable pay that contribute in employee’s pay.