The Impact of Compensation Fairness on Task Performance: The Role of Behavioral Engagement and Emotional Intelligence

Abstract

This study explores the impact of various dimensions of compensation fairness (CF) on behavioral engagement (BE) and task performance (TP) of employees in Chinese media enterprises, as well as the moderating role of emotional intelligence (EI) in the relationship between various dimensions of CF and BE. The conceptual model is based on Equity Theory and the Group Engagement Model (GEM). Using data collected from 298 media enterprise employees in China, the theoretical model is tested using the structural equation modeling approach. The linear regression analysis reveals that interactional fairness (IF) is positively significantly associated with BE, whereas distributive fairness (DF) and procedural fairness (PF) are not. BE significantly impacts TP and fully mediates the relationship between IF and TP. EI positively moderates the relationship between IF and BE, as well as the relationship between DF and BE. The findings provide insight into the impact of different dimensions of CF on BE and extend the theory of GEM. The results contribute to both theoretical understanding and practical application. Enterprise managers should prioritize IF to enhance BE, thereby improving TP. These insights empower organizations to effectively tailor their compensation strategies and technological implementations, creating a supportive work environment and optimizing employee productivity.