A study on the dimensions of pay satisfaction in the small enterprises of service industry in China

The small enterprises of service industry are facing the labor shortage in China now. Thus it is important for these enterprises to improve pay satisfaction to attract the labor. Based on the samples of the small enterprises in Qingdao and the modified PSQ, the exploratory factor analysis finds four dimensions of pay satisfaction, such as level, administration, non-financial rewards and benefits. Among them level has the most important effect on pay satisfaction, administration has more important effect on pay satisfaction, non-financial rewards and benefits have less important effect. The results show the employees in the small enterprises care more about pay level and administration than non-financial rewards and benefits. Thus, it is the key measure for compensation management of the small enterprises in service industry to increase pay level. The second measure is to improve the administration of compensation. Also, non-financial rewards and benefits shouldn't be ignored.