Effort-reward imbalance at work: the role of job satisfaction

Purpose The purpose of this paper is to examine the mediating role of job satisfaction in the relationship between effort-reward imbalance (ERI) and burnout, turnover intentions, and mental health. Design/methodology/approach Based on a sample of 323 full-time employees in the small developing country in the Caribbean, this survey study tested a mediation model with job satisfaction depicting the relationship between ERI and various outcome variables. The model was compared to a partial mediation model. Findings The structural equation modelling (SEM) results revealed that the partial mediating model was superior to the full mediation model, suggesting that job satisfaction plays only a partial role in mediating the relationships between ERI and burnout, turnover intentions, and mental health. Research limitations/implications The study presents a cross-sectional approach to model testing but the study controlled for CMV statistically using the common latent factor approach within latent SEM procedures. Practical implications Organisations should ensure that employees’ efforts are appropriately and fairly rewarded as a means of reducing negative ERIs which can have adverse consequences on the physical and mental health of employees. Originality/value Using latent SEM procedures and statistical controls for CMV, the study examined job satisfaction as a potential mediator in a popular stressor-strain model.