Most Credit Execs Are Satisfied With Compensation Package: 26 Factors Linked to Job Satisfaction
August 1, 2007
The number of credit execs who believe that their overall compensation is fair is 67.9 percent, nearly the same as three years ago. The table below shows responses to the question: Do you agree that your complete compensation package is fair?
Positive Correlations With Satisfaction With Pay
Here's important data for credit and HR department managers. The list below is a rundown of all variables that relate to the belief that one's compensation is fair. As with other such rankings in this survey, the numbers in the table are based on a statistical measurement known as "Pearson's coefficient." The number "1" would imply perfect correlation. "0" means total randomness, and no correlation. Survey Results: Positive Correlations With Satisfaction With Pay
Those with increasing levels of job satisfaction .340
Higher base salaries in 2007 .326
Senior management in touch with the contribution of credit .260
A higher standard increase for the credit department in 2007 .235
Those who oversee a larger staff .227
Larger department size .211
Those expecting a bonus in 2007 .187
Job responsibilities include budgetary authority .183
Responsible for larger budget .178
Larger A/R portfolio size overseen .178
Those who rate their department's performance favorably .177
Larger companies .173
More recent merit raise .170
Evaluation of job performance include ability to manage staff .168
Benefits include parental leave .153
Larger number of invoices per day .151
Time spent in meetings .150
Benefits include tuition reimbursement .146
Time spent on personnel issues .146
Benefits include stock options .122
Those who cite "lack of challenge" as a top source of job .122
Number of years at current company .115
Lower staff turnover rate .113
Benefits include a company car .106
Number of years in credit .104
Those who cite "variety of work" as a top factor for continued job satisfaction .102 Interestingly, increasing job satisfaction (with a Pearson's coefficient of .340) is a better predictor of the belief that one's pay is fair than pay itself. But salary level is number 2 on the list, and not far behind, with a Pearson's coefficient of .326. The third most important factor in the belief that one's pay is fair is having senior management that is in touch with the contributions of the credit department - i.e., recognition. The above factors can be organized into several broad categories:
- The size and type of company you work at - those at larger firms are more likely to be satisfied with their compensation package
- The size of your responsibilities at your company - those with greater responsibilities and authority tend to be more satisfied with their compensation package.
- Recognition - those receiving more recognition for the work they do tend to be more satisfied with their compensation package.
- Job satisfaction issues - Those who believe that their department is performing well are more likely to be satisfied with their compensation package. Keep in mind, it's hard or impossible to say which CAUSES the other, but they're definitely linked (correlated).
- Benefits - Our data show that benefits such as parental leave and tuition reimbursement actually are more important predictors of satisfaction with one's total compensation package than stock options.
Interestingly, though women overall are paid less than men, women are not less likely than men to believe that their compensation package is not fair. Download the Full Report Now
Members of this site can download the full 2007-2008 Salary & Job Satisfaction Survey by clicking here. If you are not a Member yet, no problem. You can have full access to the site within one minute from now. Click here to get started.
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