Current Volume 9
Compensation Equity and Employee Commitment in the Digital Workplace: Examining the Mediating Role of Job Satisfaction and Employee Engagement
Abstract
The digital transformation of employment relations has generated significant theoretical and practical questions regarding how compensation structures influence employee attitudes and behaviours in technology-mediated work environments. This study examines the relationship between compensation equity and organisational commitment among employees in digitally enabled service organisations, with particular attention to the mediating roles of job satisfaction and employee engagement. Grounded in Adams's (1963) Equity Theory and Blau's (1964) Social Exchange Theory, the study adopts a quantitative survey research design. Data were collected from a stratified random sample of 342 employees drawn from banks, telecommunications firms, and technology companies in Rivers State, Nigeria, using validated psychometric instruments. Structural equation modelling (SEM) with the bootstrapping procedure was employed for mediation analysis. Findings reveal that compensation equity exerts a significant positive direct effect on organisational commitment (β = 0.31, p < .001), and that this relationship is substantially mediated by both job satisfaction (indirect effect = 0.19, 95% CI [0.12, 0.27]) and employee engagement (indirect effect = 0.16, 95% CI [0.09, 0.24]). The study contributes to employment relations theory by demonstrating that perceptions of compensatory fairness operate through attitudinal and motivational pathways before translating into committed behaviour, and offers actionable recommendations for human resource practitioners navigating the challenges of compensation governance in the digital workplace.
Keywords
Compensation Equity, Organisational Commitment, Job Satisfaction, Employee Engagement, Digital Workplace, Equity Theory, Social Exchange Theory, Employment Relations, Mediation Analysis
Citations
IRE Journals:
Dr Helen Nneka Ofor, Collins Vincent Tamunoseipriye "Compensation Equity and Employee Commitment in the Digital Workplace: Examining the Mediating Role of Job Satisfaction and Employee Engagement" Iconic Research And Engineering Journals Volume 9 Issue 12 2026 Page 1832-1844 https://doi.org/10.64388/IREV9I12-1718961
IEEE:
Dr Helen Nneka Ofor, Collins Vincent Tamunoseipriye
"Compensation Equity and Employee Commitment in the Digital Workplace: Examining the Mediating Role of Job Satisfaction and Employee Engagement" Iconic Research And Engineering Journals, 9(12) https://doi.org/10.64388/IREV9I12-1718961
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
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