Developing a Model for Government Employee Compensation Policies in Line with the Requirements of Good Governance
Keywords:
Compensation, Good Governance, Human Resource Management, Government OrganizationsAbstract
This study aimed to develop and validate a model of government employee compensation policies based on the principles and requirements of good governance. This applied study employed an exploratory mixed-methods design. In the qualitative phase, the contents of 40 credible articles and books on compensation, human resource management, and good governance were analyzed to identify and classify the preliminary components of the model. In the quantitative phase, a researcher-developed questionnaire comprising 25 items across eight dimensions was administered to 95 human resource managers and experts working in governmental organizations in Isfahan, Iran. Face and content validity were assessed through expert evaluation, while composite reliability and convergent and discriminant validity were examined to evaluate the measurement model. The data were analyzed using partial least squares structural equation modeling in SmartPLS. All identified dimensions, including sustainable development, stability, transparency, justice, rule of law, employee participation, accountability, and efficiency and effectiveness, had positive and statistically significant effects on the government employee compensation model. Employee participation produced the strongest path coefficient (β = 0.91, t = 39.43), followed by sustainable development (β = 0.90, t = 39.21) and rule of law (β = 0.87, t = 27.59). The model’s overall goodness-of-fit index was 0.63, indicating an acceptable and strong fit for the proposed structural model. The proposed model demonstrates that an effective government compensation system should extend beyond financial efficiency and incorporate employee participation, sustainable development, rule of law, justice, transparency, accountability, stability, and effectiveness. Institutionalizing these principles can strengthen employee trust and motivation, improve administrative legitimacy, promote the equitable allocation of public resources, and enhance the quality and sustainability of public services.
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Copyright (c) 2025 Salah Hadi Hassan (Author); Mehrdad Sadeghi; Hadi Abdul Wahab Al- Abrrow, Mehdi Mohammadkhani (Author)

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