Academia Arena 2013;5(2) http://www.sciencepub.net/academia http://www.sciencepub.net/academia aarenaj@gmail.com 39 The Relationship between Job Satisfaction and Remuneration in Pakistan: Higher Education Institutes Perspectives Tahira Nazir 1, , Syed Fida Hussain Shah 2 , Khalid Zaman 2 1. PhD Scholar, Universiti Teknologi Malaysia, Malaysia. 2. Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan. khalidzaman@ciit.net.pk Abstract: Empirical research has identified the various factors which affect the employees regarding their job satisfaction from the intrinsic and extrinsic aspects but limited work is done on the knowledge workers in this regard in the developing countries like Pakistan. A university teacher imparts training at the highest level in knowledge category however, factors influencing his/her satisfaction levels are not little known. An attempt has been made to relate the impact of job satisfaction with regard to benefits and salary of a university faculty member of Pakistan based on higher education universities. The result shows that there is a positive relationship exists between job satisfaction and pay of knowledge workers. This research is an attempt to undertake and analyze all those important aspects that improve the satisfaction level of teachers in the universities and promote learning culture. Pay is one of the most important and basic determinant of the job satisfaction of university teachers in Pakistan. [Nair T, Shah SFH, Zaman K. The Relationship between Job Satisfaction and Remuneration in Pakistan: Higher Education Institutes Perspectives. Academ Arena 2013;5(2):39-42] (ISSN 1553-992X). http://www.sciencepub.net/academia . 8 Key words: Job Satisfaction; Compensations; Pay Performance; Rewards; Working Environment; Organizational HR Practices; Pakistan. 1. Introduction In countries like Pakistan, the class involved in transferring and sharing of knowledge are called teachers. In both public and private sectors, teachers are employed through contractual contracts and in government sector on permanent basis. The induction process is well worked out and candidates have to go through different stages of tests and interviews, then accordingly selected candidates are offered packages depending on the qualification and experience. Higher Education Commission (HEC) has helped in improving the standards of education for the colleges and university faculties in terms of higher salaries depending upon the universities profile whom they completed their final degree but this does not apply same for domestic universities faculties. Therefore, grievances against the job satisfaction exist in the faculty members in these prestigious institutions. In numerous studies of social sciences, salary impact on the workers’ characteristics and job satisfaction has been found, so an attempt is made to gauge the impact and relationship between these two human resource variables. Two-Factor theory of Herzberg is an interesting theory that highlights both academic and realistic implications of job satisfaction. It states that dissatisfied workers are more concerned about “conditions that surround the job” such as prevailing working environment, job security, pay, quality of supervision, called as hygiene factors (Herzberg et al., 1959, p.113). If employees are satisfied with their job, organization output and efficiency will improve and turnover of employees will decrease. Salary, reward or remuneration is defined as the compensation in lieu of the services rendered by the employee. It is always compared in relation to the timings on periodic basis. Pay or salary is an acknowledgement and regarded as reward to motivate and improve the workers behavior towards the goals set by the employer (Oshagbemi, 2000). Although there are many social factors important for enhancing the efficacy but salary impact is most potent and effective. The pleasure and satisfaction one drives from pay is important for life, as dissatisfaction leads to decreased interest in work and motivation. The objective of this study is to around the well debated question in the academia i.e., whether pay satisfaction positively influence employment, enthusiasm and routine, and it further lead to decrease in turnovers in academics. The current study seeks the answer in higher education institutes of Pakistan. The study is divided in to following sections i.e., after introduction which is discussed in Section 1 above. Section 2 shows the review of literature. Data and methodological framework is shown in Section 3. Results are discussed in Section 4. Final section concludes the study. 2. Literature Review Human resource and rewards are well debated issues in academia arena. However, this debate is ignored in higher education institutes perspectives. Frye (2004) studied the link between salary and job