Pandemic and compensation and benefits satisfaction: A study on Indian manufacturing firms

This study examines the antecedents of compensation and benefit satisfaction in Indian manufacturing firms during the COVID-19. Responses to the questionnaire were obtained from 164 middle-level managers and analyzed applying partial least squares structural equation modeling. Managers having stronger personal values and working in redefined human resource development climate perceive lower discrepancy between industry standards and actual salary, between available and applicable benefits. Lower compensation and benefit discrepancy partially enhances compensation and benefit satisfaction through justice perception. Managers refrain from pay comparison and perceive lower compensation offerings as fair. Under high psychological capital, low compensation and benefit discrepancy increases compensation and benefit satisfaction. During uncertainty, designing a fair pay by adhering to industry standards can help in minimizing compensation and benefit discrepancy and can further compensation and benefit satisfaction and shape employees’ attitudes and behaviors.