Compensation Equity and Promotion Practices on Faculty Motivation: A Moderated Mediation Model Testing Organizational Justice and Leadership Communication Effects

Abstract

Background and Aims: Faculty motivation is an important factor in influencing teaching quality, research productivity, and overall institutional effectiveness in higher education. This study examines the effects of compensation equity and promotion practices on faculty motivation, investigating the mediating role of perceived organizational justice and the moderating role of leadership communication in Ghanaian public universities. Methodology: A quantitative cross-sectional design was employed to collect data from 412 faculty members across six public universities in Ghana using structured questionnaires. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test hypothesized relationships, including mediation and moderation effects. Findings: The results revealed that compensation equity (β = 0.187, p < 0.01) and promotion practices (β = 0.162, p < 0.05) significantly influenced faculty motivation. The findings further showed that perceived organizational justice fully mediated the relationship between compensation equity and faculty motivation (indirect effect = 0.284, p < 0.001) and partially mediated the promotion-motivation relationship (indirect effect = 0.251, p < 0.001). The finding also established that Leadership communication significantly moderated the justice-motivation relationship (β = 0.143, p < 0.01), with the positive effect being stronger when leadership communication was high. The model explained 68.4% of variance in faculty motivation. Research Limitations: Cross-sectional design limits causal inference; future longitudinal studies could strengthen causal claims. The study context (Ghanaian public universities) may limit generalizability to other contexts. Practical Implications: University administrators should prioritize transparent compensation systems, merit-based promotion criteria, and effective leadership communication to enhance faculty motivation. Justice perceptions serve as critical psychological mechanisms requiring attention beyond mere policy implementation. Value: This study is among the first to simultaneously examine compensation equity, promotion practices, organizational justice, and leadership communication in a comprehensive moderated mediation model within African higher education, providing valuable insights for resource-constrained contexts.