Research ArticleOpen AccessGoogle Scholar indexed
The Impact of Wage Structure on Employee Satisfaction, Motivation, and Retention in the Thai Textile Industry
Doctoral Research Department, California Intercontinental University, Irvine, USA
Thipsamai Research Institute, Bangkok, Thailand
- 1 Doctoral Research Department, California Intercontinental University, Irvine, USA
- 2 Thipsamai Research Institute, Bangkok, Thailand
American Journal of Industrial and Business Management·Volume 15 (2025)·Pages 1726–1770·Published 31 October 2025·DOI10.4236/ajibm.2025.1511090
Copy link · social · email
Abstract
This study investigates the impact of wage structure on employee satisfaction, motivation, and retention in Thailand’s textile manufacturing industry. Despite the recognized importance of the wage structure in human resource management, limited empirical evidence exists regarding its effects in developing-country manufacturing contexts. Using a quantitative correlational research design, data were collected from 1110 textile employees in Thailand’s central region via structured questionnaires. Descriptive statistics, correlation analysis, and multiple regression examined relationships between perceptions of the wage structure and employee outcomes. Results revealed strong positive correlations between wage structure and all three outcomes: employee satisfaction (r = 0.878, p < 0.001), employee motivation (r = 0.599, p < 0.001), and employee retention (r = 0.579, p < 0.001). Regression analysis demonstrated that wage structure explained 77.0% of the variance in employee satisfaction, 35.8% in motivation, and 33.5% in retention. Findings suggest that the wage structure is a critical determinant of employee satisfaction while also moderately influencing motivation and retention. The research provides empirical evidence for strategic compensation management in textile manufacturing and offers practical implications for organizations seeking to enhance employee outcomes through wage-structure optimization. The study contributes to the compensation management literature by addressing research gaps in developing-economy manufacturing contexts.
KeywordsCompensation StrategyDeveloping EconomiesEmployee OutcomesHuman Resource ManagementTextile ManufacturingThailandWage Structure
- Abdirahman, H. I. H., Najeemdeen, I. S., Abidemi, B. T., & Ahmad, R. B. (2018). The Relationship between Job Satisfaction, Work-Life Balance and Organizational Commitment on Employee Performance. Academic Journal of Economic Studies, 4, 12-17.
- Adams, S. J. (2005). Equity Theory (1st ed.). Routledge.
- Adhikari, G. P. (2021). Calculating the Sample Size in Quantitative Studies. Scholars ’ Journal, 4 , 14-29. https://doi.org/10.3126/scholars.v4i1.42458
- Ahmad, H., & Halim, H. (2017). Determining Sample Size for Research Activities. Selangor Business Review, 2, 20-34.
- Akoglu, H. (2018). User’s Guide to Correlation Coefficients. Turkish Journal of Emergency Medicine, 18, 91-93. https://doi.org/10.1016/j.tjem.2018.08.001
- Alam, M. N., Hassan, M. M., Bowyer, D., & Reaz, M. (2020). The Effects of Wages and Welfare Facilities on Employee Productivity: Mediating Role of Employee Work Motivation. Australasian Business, Accounting & Finance Journal, 14, 38-60. https://doi.org/10.14453/aabfj.v14i4.4
- Aljumah, A. A. (2020). Performance Related Pay System: How Does It Affect the Performance of the Employees? European Journal of Business and Management, 12, 111-119.
- Amoo, A. A., Saka, T. A., & Dangana, K. A. (2020). Compensation Strategies and Employee Retention: Any Correlation? International Journal of Management Science and Entrepreneurship, 19 , 105-127. https://www.cambridgenigeriapub.com/wp-content/uploads/2021/01/CJMSE_Vol18_No7_Sept_2020-8.pdf
- Auer, E. M., Behrend, T. S., Collmus, A. B., Landers, R. N., & Miles, A. F. (2021). Pay for Performance, Satisfaction and Retention in Longitudinal Crowdsourced Research. PLOS ONE, 16, e0245460. https://doi.org/10.1371/journal.pone.0245460
- Bamberger, P. A., & Alterman, V. (2023). Navigating the Practical Complexities of Pay Transparency: Implications for Employers and Public Policy. Compensation & Benefits Rev iew, 56, 37-48. https://doi.org/10.1177/08863687231189590
- Banerjee, T. (2019). Designing a Primary Survey-Based Research. In R esearch Methodology for Social Sciences (pp. 167-180). Routledge. https://doi.org/10.4324/9780367810344-9
- Banning, E. B. (2020). Summarizing Data: Descriptive Statistics. In Interdisciplinary Contributions to Archaeology (pp. 17-21). Springer. https://doi.org/10.1007/978-3-030-47992-3_2
- Baruch, Y., & Holtom, B. C. (2008). Survey Response Rate Levels and Trends in Organizational Research. Human Relations, 61, 1139-1160. https://doi.org/10.1177/0018726708094863
- Bell, E., Bryman, A., & Harley, B. (2022). Business Research Methods (6th ed.). Oxford University Press.
- Carter, S. S. (2019). Author Post: The Impact of Wages on Employee Productivity. Forbes . https://www.forbes.com/sites/forbesbooksauthors/2019/09/12/the-impact-of-wages-on-employee-productivity/?sh=740b4c4460cf
- Charungkiattikul, S., & Joneurairatana, E. (2021). A Revival for Thailand’s Textile Traditions: New Value for Local Materials (Eri Silk) through Art Practice. TEXTILE: Cloth and Culture , 19, 340-353. https://doi.org/10.1080/14759756.2021.1914957
- Chauhan, R. A., & Pathak, D. A. (2022). A Study on the Impact of Compensation Policy on Employee Satisfaction in Sutex Fabrics and Knits. Inter na tional Journal of Scienti fic Research in Engineering and Management , 6, 1-12. https://doi.org/10.55041/ijsrem12136
- Chen, Y., Zhang, Z., Zhou, J., Liu, C., Zhang, X., & Yu, T. (2023). A Cognitive Evaluation and Equity-Based Perspective of Pay for Performance on Job Performance: A Meta-Analysis and Path Model. Frontiers in Psychology, 13, Article 1039375. https://doi.org/10.3389/fpsyg.2022.1039375
- Cohen, J. (2013). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Routledge.
- Cook, R. D., & Weisberg, S. (1982). Residuals and Influence in Regression (1st ed.). Chapman & Hall.
- Corti, L., Bishop, L., & Woollard, M. (2019). Managing and Sharing Research Data: A Guide to Good Practice (2nd ed.). Sage Publications Ltd.
- Creswell, J. W., & Creswell, J. D. (2022). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). Sage Publications.
- De Coning, J. A., Rothmann, S., & Stander, M. W. (2019). Do Wage and Wage Satisfaction Compensate for the Effects of a Dissatisfying Job on Life Satisfaction? SA Journal of Industrial Psychology, 45, a1552. https://doi.org/10.4102/sajip.v45i0.1552
- Dillman, D. A., Smyth, J. D., & Christian, L. M. (2021). Internet, Phone, Mail, and Mixed -Mode Surveys: The Tailored Design Method (5th ed.). Wiley.
- Din, M. u., Zia-ud-Din, M., & Shafique, M. Z. (2018). Effects of Employees Experience on Employees Performance on Textile Sector. International Journal of Academic Research in Business and Social Sciences, 8, 257-268. https://doi.org/10.6007/ijarbss/v8-i7/4337
- Dźwigoł, H. (2018). Quantitative Methods in the Triangulation Process. In Proceedings of the IISES Annual Conference , Sevilla, Spain (pp. 53-68). International Institute of Social and Economic Sciences. https://doi.org/10.20472/iac.2018.035.012
- Enders, C. K. (2022). Applied Missing Data Analysis (2nd ed.). Guilford Publications.
- European Commission (2018). Turning Fair into Reality . Publications Office of the EU. https://op.europa.eu/en/publication-detail/-/publication/7769a148-f1f6-11e8-9982-01aa75ed71a1/language-en
- Faul, F., Erdfelder, E., Lang, A., & Buchner, A. (2007). G*Power 3: A Flexible Statistical Power Analysis Program for the Social, Behavioral, and Biomedical Sciences. Behavior Research Methods, 39, 175-191. https://doi.org/10.3758/bf03193146
- Field, A. (2024). Discovering Statistics Using IBM SPSS Statistics (6th ed.). Sage Publications.
- Grady, C. (2019). The Continued Complexities of Paying Research Participants. The American Journal of Bioethics, 19, 5-7. https://doi.org/10.1080/15265161.2019.1643654
- Hair, J. F.(2009). Multivariate Data Analysis (7th ed.). Prentice Hall.
- Halvachizadeh, D., Memarzadeh, G., Mohammadi, N., & Doroudi, H. (2022). Providing a Lean Human Resources Management Model. International Journal of Human Capital in Urban Management, 7, 487-498.
- Haryanti, N., Anwar, M., Hidayati, Y., & Dianto, A. (2022). Statistical Data Processing Training through Statistical Product and Service Solution (SPSS) Software Application at Prince Diponegoro Islamic Religious Institute Nganjuk. Indonesian Journal of Engagement, Community Services, Empowerment and Development, 2, 46-60.
- Hassan, D., Maqsood, R., & Gill, S. (2018). A Study of a Causal Relationship between Performance Appraisal and Employee Performance: Evidence from the Textile Sector in Faisalabad. Journal of Education and Vocational Research, 9, 44-50.
- Hayes, A. F., & Cai, L. (2007). Using Heteroskedasticity-Consistent Standard Error Estimators in OLS Regression: An Introduction and Software Implementation. Behavior Res earch Methods, 39, 709-722. https://doi.org/10.3758/bf03192961
- Hemalatha, G. (2021). A Study “On Employee Engagement Activities at H & R Johnson (INDIA) A Division of Prism Cements”. International Journal of Creative Research Thoughts, 9, 402-407. https://ijcrt.org/papers/IJCRT2106172.pdf
- Ho, U. I., & Phillips, J. O. L. (2025). The Impact of Monetary Rewards and Employees’ Benefits on Frontline Staff Motivation in the Retail Industry. Journal of Economics, Business and Management, 13 , 309-314. https://doi.org/10.18178/joebm.2025.13.3.884
- Israel, M. (2018). Research Ethics and Integrity for Social Scientists: Beyond Regulatory Compliance (3rd ed.). Sage Publications.
- Judge, T. A., Piccolo, R. F., Podsakoff, N. P., Shaw, J. C., & Rich, B. L. (2010). The Relationship between Pay and Job Satisfaction: A Meta-Analysis of the Literature. Journal of Vocational Behavior, 77, 157-167. https://doi.org/10.1016/j.jvb.2010.04.002
- Keith, T. Z. (2019). Multiple Regression and beyond: An Introduction to Multiple Regression and Structural Equation Modeling (3rd ed.). Routledge.
- Kim, S. (2022). A Study on Prediction of Linear Relations between Variables According to Working Characteristics Using Correlation Analysis. International Journal of I nternet, Broadcasting and Communication, 14, 228-239.
- Kirby, C. (2023). Being Transparent about Pay Transparency. Strategic HR Review, 22, 205-208. https://doi.org/10.1108/shr-10-2023-0053
- Kline, R. B. (2023). Principles and Practice of Structural Equation Modeling (5th ed.). Guilford Publications.
- Krishna, A. (2024). From Fiber to Fabric: A Comprehensive Overview of Textile Processing. International Journal of Scientific Research in Science and Technology, 11, 1008-1011. https://doi.org/10.32628/ijsrst54310299
- Lane, M., Berlin, N. L., Chung, K. C., & Waljee, J. F. (2023). Strengthening Association through Causal Inference. Plastic & Reconstructive Surgery, 152, 899-907. https://doi.org/10.1097/prs.0000000000010305
- Latha, S. (2022). Secure File Storage Using Hybrid Cryptography. International Researc h Journal of Modernization in Engineering Technology and Science, 4, 1282-1289.
- Li, L. (2022). Exploring Factors That Cause RT Mart’s High Rate of Employee Turnover from the Perspective of Organizational Behavior. BCP Business & Management, 31, 42-48. https://doi.org/10.54691/bcpbm.v31i.2534
- Lindner, J. R., & Lindner, N. (2024). Interpreting Likert Type, Summated, Unidimensional, and Attitudinal Scales: I Neither Agree nor Disagree, Likert or Not. Advancements i n Agricultural Development, 5, 152-163. https://doi.org/10.37433/aad.v5i2.351
- Madrakhimova, G. (2022). Theoretical Basis of Improving Resource Saving in Industrial Enterprises. International Conference on Advance Research in Humanities, Sciences and Education , 5, 115-119. https://confrencea.org/index.php/confrenceas/article/view/151
- Malik, E., Baig, S. A., & Manzoor, U. (2020). Effect of HR Practices on Employee Retention: The Role of Perceived Supervisor Support. Journal of Public Value and Administrativ e Insight, 3, 1-7. https://doi.org/10.31580/jpvai.v3i1.1201
- Martin, A. J., Collie, R. J., Durksen, T. L., Burns, E. C., Bostwick, K. C. P., & Tarbetsky, A. L. (2018). Growth Goals and Growth Mindset from a Methodological-Synergistic Perspective: Lessons Learned from a Quantitative Correlational Research Program. Internat ional Journal of Research & Method in Education, 42, 204-219. https://doi.org/10.1080/1743727x.2018.1481938
- McWha-Hermann, I., Searle, R. H., & Carr, S. C. (2021). Striving for More: Work and Organizational Psychology (WOP) and Living Wages. European Journal of Work and Or ganizational Psychology, 30, 771-776. https://doi.org/10.1080/1359432x.2021.1972972
- Memon, M. A., Salleh, R., Nordin, S. M., Cheah, J., Ting, H., & Chuah, F. (2018). Person-organisation Fit and Turnover Intention: The Mediating Role of Work Engagement. Journal of Management Development, 37, 285-298. https://doi.org/10.1108/jmd-07-2017-0232
- Memon, M. A., Ting, H., Cheah, J., Thurasamy, R., Chuah, F., & Cham, T. H. (2020). Sample Size for Survey Research: Review and Recommendations. Journal of Applied Struct ural Equation Modeling, 4, 1-20. https://doi.org/10.47263/jasem.4(2)01
- Mishra, P., Pandey, C., Singh, U., Sahu, C., & Keshri, A. (2019). Descriptive Statistics and Normality Tests for Statistical Data. Annals of Cardiac Anaesthesia, 22, 67-72. https://doi.org/10.4103/aca.aca_157_18
- Mitta, G. M. (2023). Labor Related Challenges of Textile and Garment Industries in the Ethiopian Industrial Parks: The Perspective of Stakeholders. In Sozialwissenschaftliche Zugänge zu Afrika (pp. 129-158). Springer Fachmedien Wiesbaden. https://doi.org/10.1007/978-3-658-41794-9_5
- Mocănașu, D. R. (2020). Determining the Sample Size in Qualitative Research. Interna tional Multidisciplinary Scientific Conference on the Dialogue between Sciences & Arts, Religion & Education, 4, 181-187.
- Moon, K., Bergemann, P., Brown, D., Chen, A., Chu, J., Eisen, E. et al. (2018). Manufacturing Productivity with Worker Turnover. SSRN Electronic Journal . https://doi.org/10.2139/ssrn.3248075
- Muqaddim, N., & Hosain, M. S. (2021). E-HRM Practices and Operational Efficiency: Evidence from Bangladeshi Garment Industry. Asian Journal of Economics, Busines s and Accounting, 21 , 81-96. https://doi.org/10.9734/ajeba/2021/v21i430373
- Nawrocka, S., De Witte, H., Brondino, M., & Pasini, M. (2021). On the Reciprocal Relationship between Quantitative and Qualitative Job Insecurity and Outcomes. Testing a Cross-Lagged Longitudinal Mediation Model. International Journal of Environmental R esearch and Public Health, 18, Article 6392. https://doi.org/10.3390/ijerph18126392
- Nightingale, A. J. (2020). Triangulation. In International Encyclopedia of Human Geography (pp. 477-480). Elsevier. https://doi.org/10.1016/b978-0-08-102295-5.10437-8
- Nundy, S., Kakar, A., & Bhutta, Z. A. (2022). How to Practice Academic Medicine and Publish from Developing Countries? Springer Nature Singapore. https://doi.org/10.1007/978-981-16-5248-6
- Oldham, G. R., & Fried, Y. (2016). Job Design Research and Theory: Past, Present and Future. Organizational Behavior and Human Decision Processes, 136, 20-35. https://doi.org/10.1016/j.obhdp.2016.05.002
- Phungsoonthorn, T., & Charoensukmongkol, P. (2019). Antecedents and Outcomes Associated with a Sense of Place toward the Organization of Myanmar Migrant Workers in Thailand. Equality, Diversity and Inclusion: An International Journal, 39, 195-218. https://doi.org/10.1108/edi-06-2019-0177
- Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of Method Bias in Social Science Research and Recommendations on How to Control It. Annual Review of Psyc hology, 63, 539-569. https://doi.org/10.1146/annurev-psych-120710-100452
- Podsakoff, P. M., MacKenzie, S. B., Lee, J., & Podsakoff, N. P. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology, 88, 879-903. https://doi.org/10.1037/0021-9010.88.5.879
- Roos, J. M., & Bauldry, S. (2021). Confirmatory Factor Analysis (1st ed.). Sage Publications.
- Saranya, U., Logeswari, A., & Sujatha, U. (2020). A Review on Anonymization Techniques for Privacy Protection in Data Mining. International Journal of Engineering Applied Sciences and Technology, 4, 310-316. https://doi.org/10.33564/ijeast.2020.v04i10.057
- Schmidt, J. A., & Pohler, D. M. (2018). Making Stronger Causal Inferences: Accounting for Selection Bias in Associations between High Performance Work Systems, Leadership, and Employee and Customer Satisfaction. Journal of Applied Psychology, 103, 1001-1018. https://doi.org/10.1037/apl0000315
- Schober, P., Boer, C., & Schwarte, L. A. (2018). Correlation Coefficients: Appropriate Use and Interpretation. Anesthesia & Analgesia, 126, 1763-1768. https://doi.org/10.1213/ane.0000000000002864
- Singh, R., & Bhushan, D. V. (2023). The Global Workforce Revolution: Exploring Digital Labour Platforms and the Gig Economy in the Era of Globalization. International Journal of Civil Law and Legal Research, 3, 19-27. https://doi.org/10.22271/civillaw.2023.v3.i2a.52
- Singh, S. (2022). Relationship between Intrinsic Motivation and Job Satisfaction. International Journal of Indian Psych o logy, 9 , 1312-1325.
- Tabachnick, B., & Fidell, L. (2021). Using Multivariate Statistics (7th ed.). Pearson.
- Tensay, A. T., & Singh, M. (2020). The Nexus between HRM, Employee Engagement and Organizational Performance of Federal Public Service Organizations in Ethiopia. Heliyon, 6, e04094. https://doi.org/10.1016/j.heliyon.2020.e04094
- Torwane, N., Singh, V., & Dayma, A. (2021). Sample Size Determination Simplified: A Review. International Journal of Oral Care and Research, 9, 90-92. https://doi.org/10.4103/injo.injo_19_21
- Tukhtabaev, J. S., Tillaeva, B. R., Razakova, B. S., Ismagulova, G. N., & Achilov, I. A. (2021). Econometric Evaluation of Influential Factors to Increasing Labor Efficiency in Textile Enterprises. Webology, 18, 125-139. https://doi.org/10.14704/web/v18si02/web18024
- Vroom, V. H. (1994). Work and Motivation (1st ed.). Jossey-Bass.
- Wepukhulu, R., & Likoko, S. (2023). Employee Satisfaction and Retention in Kenyan Public Universities. European Journal of Theoretical and Applied Sciences, 1, 875-880. https://doi.org/10.59324/ejtas.2023.1(4).81
- Yetiani, Y., Krisnandi, H., Digdowiseiso, K., & Mohamed, W. N. (2024). The Effect of Leadership, Compensation and Motivation on Employee Performance in PT. Dua Mutiara. International Journal of Social Service and Research, 4, 357-367. https://doi.org/10.46799/ijssr.v4i01.704