Is It “Just Work”? The Impact of Work Rewards on Job Satisfaction and Turnover Intent in the Nonprofit, For-Profit, and Public Sectors
| Author | Keely Jones Stater,Mark Stater |
| Published date | 01 May 2019 |
| DOI | 10.1177/0275074018815261 |
| Date | 01 May 2019 |
| Subject Matter | Articles |
research-article2018
Article
American Review of Public Administration
2019, Vol. 49(4) 495 –511
Is It “Just Work”? The Impact of Work Rewards
© The Author(s) 2018
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on Job Satisfaction and Turnover Intent in the
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https://doi.org/10.1177/0275074018815261
DOI: 10.1177/0275074018815261
Nonprofit, For-Profit, and Public Sectors
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Keely Jones Stater1 and Mark Stater2
Abstract
This article uses the General Social Survey (GSS) to compare the effects of “social” work rewards on job satisfaction and
turnover intent for nonprofit, public, and for-profit workers. Drawing on properties of the nonprofit sector, we hypothesize
that social rewards should be more prevalent in nonprofit workplaces and have a larger impact on job decisions for nonprofit
than for government and for-profit workers. Consistent with this, we find that social rewards are perceived as more prevalent
in nonprofit organizations. In addition, having helpful coworkers and having a supervisor who cares about one’s welfare have
larger effects on job satisfaction for nonprofit workers than for workers in the other two sectors, and having a helpful
supervisor discourages turnover intent to a larger extent in the nonprofit sector than in the for-profit and public sectors.
Overall, however, we find that differences in the magnitude of impact of social rewards by sector are less pronounced than
theory would suggest.
Keywords
nonprofit organizations, public organizations, work rewards, job satisfaction, intent to look for a new job, binary dependent
variable models
Introduction
This article uses the General Social Survey (GSS) to inves-
tigate the possibility that social rewards are more available in
Is all work “just work” or do workers sort themselves across
the nonprofit sector and that those employed in nonprofit
different sectors of employment based on the kinds of mean-
organizations are more motivated by the social dimension of
ing they associate with their work? While mission-driven
work than their for-profit or public sector peers. The findings
work in the public and nonprofit sectors can be considered
suggest that social rewards are more prevalent in the non-
particularly meaningful, nonprofit organizations can present
profit sector. In addition, having helpful coworkers and hav-
especially challenging work environments, which are some-
ing a supervisor who cares about one’s welfare have larger
times chronically understaffed and underfunded. Problems
effects on job satisfaction for nonprofit workers than for
such as burnout, compensation constraints, and a lack of
workers in the other two sectors. Furthermore, the intent to
advancement opportunities can cause nonprofit staff to
look for a new job is reduced more by having a helpful super-
become dissatisfied with their work or eventually leave their
visor for nonprofit than for public or for-profit employees.
positions (DeVaro & Brookshire, 2007; Leete, 2006). From a
These results can be understood in light of New Institutional
retention perspective, it is useful to understand what factors
Theory, which suggests the organizational structure and insti-
enable nonprofit employees in particular to find their jobs
tutional environment unique to each sector will lead to unique
rewarding and worth keeping in comparison with their for-
sets of employee reward preferences. The results also have
profit and public sector peers. Research shows that nonprofit
employees may value a set of work incentives unique to non-
profit labor, including an emphasis on social interaction
1
(Benz, 2005; Mirvis & Hackett, 1983; Preston, 1989).
The Public and Affordable Housing Corporation at HAI Group, Cheshire,
However, there is little generalizable work that examines the
CT, USA
2Trinity College, Hartford, CT, USA
mix of work rewards most effective for nonprofit employees
compared with their public sector and for-profit peers or
Corresponding Author:
explores how social aspects of work, in particular, might
Keely Jones Stater, Director of Research and Industry Intelligence, Public
and Affordable Housing Research Corporation (PAHRC) at HAI Group,
contribute differently to job satisfaction and intent to look for
189 Commerce Ct, Cheshire, CT 06410, USA.
a new job by sector.
Email: kstater@pahrc.org
496
American Review of Public Administration 49(4)
implications for nonprofit organizations in structuring the
Prior sociological, psychological, and economic theory
work environment to attract and retain satisfied and moti-
also points to the importance of social rewards in work,
vated staff. Most notably, facilitating productive and collegial
which are the focus of this article. Kalleberg (1977) includes
working relationships with colleagues and supervisors, utiliz-
relationships with coworkers as an important dimension of
ing individual skills, and allowing people job autonomy are
extrinsic motivation with a significant impact on job satis-
employment practices that should resonate with the prefer-
faction in his theory of work motivation. Similarly, Deci and
ences of nonprofit workers. But as many nonprofit organiza-
Ryan’s (2000) self-determination theory purports that “relat-
tions compete with the public and for-profit sector for a
edness,” or interaction with others, is an essential psycho-
similar pool of workers, they will also generally need to pro-
logical component of well-being and a central source of
vide adequate pay, benefits, and promotion opportunities to
self-motivation in the workplace. Similarly, Ben Ner and
recruit and retain talented workers. Indeed, some of our find-
Putterman (1999) describe “other-regarding” job preferences
ings suggest that the effects of extrinsic rewards on work out-
as those that consider the welfare of others and the ultimate
comes are similar in the nonprofit and for-profit sectors.
collective benefit of the work. These theories point to the
importance of social interaction and relationships in particu-
Literature Review
lar as influential determinants of job satisfaction and turn-
over intent.
New Institutional Theory suggests that work rewards are
Following this theoretical framework, we define social
embedded within institutional environments, reinforced by
rewards as extrinsic and intrinsic rewards that are produced
organizational structures, and perpetuated by shared ideas
by interactions with others or through tasks that are intended
and actions (DiMaggio & Powell, 1983; Myer & Rowan,
to benefit a group. For example, compensation and promo-
1977; Scott, 2008). Workers make choices using institutional
tions are extrinsic rewards that accrue primarily to the worker
logics of action that are built on shared expectations and
alone, but meaningful interactions with coworkers and
beliefs about how to best meet organizational goals and
supervisors and a supportive, collaborative relationship with
influenced by the laws and processes governing their field.
management are extrinsic social rewards that arise from a
Because nonprofit organizations, public organizations, and
social exchange, can create positive relationships, and affect
for-profit businesses operate in different institutional envi-
a larger group. Similarly, the chance to utilize one’s skills
ronments and have different organizational frameworks and
and learn new things are intrinsic rewards that focus on the
institutional logics, the structure of rewards available in the
joy of the work itself and mainly benefit the individual
organization, their significance in organizational culture, and
worker. Yet contributing to the betterment of a group is an
their influence on employees’ job decisions should also dif-
intrinsic social reward that makes a worker feel good about
fer. Thus, we should see unique mixtures of work rewards
doing their job and benefits both the worker and the larger
available to and preferred by employees within each sector,
society.
assuming workers are well matched to their jobs and sector
We argue that given the unique organizational structures,
(Brandl & Guttel, 2007; Kalleberg, Marsden, Reynolds, &
shared logics of action, and institutional environments, social
Knoke, 2006; Rainey, 1983; Spencer, 2011).
rewards may be of particular importance to workers within
By “work rewards,” we mean any aspect of the job or
the nonprofit sector. Social interaction has been shown to be
workplace that potentially helps to improve the experience of
more important to workers in mission-driven organizations in
work. Work rewards are often divided into the categories of
the public and nonprofit sectors with organizational goals that
“extrinsic” and “intrinsic,” which are based, respectively, on
focus on a collective good (Borzaga & Tortia, 2006). Although
the “hygiene” and “motivational” factors articulated by
both government organizations and nonprofits strive to meet
Herzberg, Mausner, and Snyderman (1967). Extrinsic rewards
a social mission, nonprofits are uniquely structured to pro-
pertain to the context in which work is done and are external
mote this end, utilizing volunteers for labor (in many cases)
to the task. These include pay, benefits, status, organizational
and depending on public contributions and grants rather than
reputation,...
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