This paper presents a research design for studying the relationship between equity compensation and employee satisfaction at Netflix. The study identifies compensation equity as the independent variable and employee satisfaction as the dependent variable, hypothesizing that employees who perceive their compensation as fair will report greater satisfaction. A cross-sectional survey research design is proposed, using a personally administered questionnaire delivered to approximately 70 employees. Responses are to be measured on a Likert scale and analyzed using descriptive statistics in SPSS. The paper concludes by predicting that Netflix employees will report satisfaction with their equity compensation package, viewing it as fair and motivating.
The dependent variable is the effect — or the variable being explained — while the independent variable is the explanatory, or causal, variable. The determination of which variable is dependent and which is independent depends on the context of the study. In this case, the hypothesis being tested is that if Netflix's payment system is perceived as fair, employees are more likely to report satisfaction. Conversely, if employees consider their compensation unfair, they are more likely to report dissatisfaction.
Compensation equity — understood as the perception of being paid fairly — is treated as the variable that influences the level of employee satisfaction. Therefore, the independent variable is compensation equity, and the dependent variable is employee satisfaction (Johnson, 2015).
The most appropriate research design for this study is a survey research design, chosen to examine the impact of compensation on employee satisfaction. This design is fitting for two key reasons. First, the study is cross-sectional, meaning data from participants will be gathered at a single point in time. Second, the study aims to measure participants' attitudes and perspectives regarding the compensation they receive from the company.
Participants will be asked how they feel about the compensation Netflix offers and how that compensation affects their level of satisfaction. As one of the leading companies in its industry, Netflix prioritizes employee satisfaction through its compensation practices in order to motivate employees to perform at their best (Ghazanfar et al., 2011).
The population examined in this study will include approximately 70 employees. Given the relatively small population size, a survey administered via a personally delivered questionnaire will be used for data collection. The questionnaire method was selected for several reasons. First, it facilitates the creation of a precise instrument through multi-item questions. Second, since participants are employees of an established company, they are well suited to answer this type of questionnaire. Third, this method is among the most effective approaches for obtaining neutral, unbiased responses using a consistent instrument (Ghazanfar et al., 2011).
One advantage of the questionnaire method is its efficiency in collecting data from multiple respondents simultaneously. A potential disadvantage is that self-reported responses may reflect social desirability bias, where participants provide answers they perceive as favorable rather than fully candid ones. Additionally, a small sample of 70 employees may limit the generalizability of findings beyond this specific context. For further context on survey methodology and its limitations, researchers have documented these trade-offs extensively in the social sciences literature.
"Outlines Likert scale and SPSS descriptive analysis"
"Predicts employees report satisfaction with compensation"
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