Final paper
How stress is perceived: The impact of financial compensation and education requirements on stress.
Ashley Jeanbart
University of north Florida, Department of psychology
SOP3214C: Experimental social psychology
Dr. Curtis Phills
April 19, 2024
Abstract
In this study we investigate the contribution of financial compensation on stress while assessing the mediating role of education level. A sample of 106 participants from diverse backgrounds participated in an online scenario-based survey. Measures included a questionnaire that assessed the participant’s perceptions of stress. Our findings give insight into the complex relationships of financial compensation, educational attainment, and stress. Implications for organizational practices as well as possible future research is discussed.
Introduction
Despite income levels increasing in recent years, Americans are reporting financial stress as one of the main factors negatively impacting their mental health . According to the America psychological association’s 2022 stress survey, 83 percent of participants reported Inflation as a source of stress , 69 percent said the economy, and 66 percent reported money as a significant source of stress . Based on this knowledge, we aimed to investigate how stress was impacted by financial compensation while also assessing the moderating effects of education level. We hypothesized that the participants would perceive the characters with no college degree as having higher financial stress than those with a college degree .A scenario-based questionnaire was used to assess participants perception of stress .
Method
Participants
The participants of this study consisted of 26 women (76.5%) and 8 men (23.5%); 79.4% White, 0 % Latino, 11.8% Black,5.88 % Asian, 2.94 % other, Ages 18–72. median age=35 Participants were recruited via a convenience sampling technique on social media. Participants were not compensated for their participation.
Design
The participants were randomly assigned in a 2 (Financial Compensation: Below Average vs. Above Average) x 2 (Job Type: Requires a college Degree vs. Does Not Require a college Degree) between-groups design. Participants were randomly assigned to one of the four conditions to assess the effects of financial compensation and job type on stress levels.
Procedure
After giving electronic consent participants, the participants engaged in the story task. The purpose of the story task was to manipulate perceptions of financial compensation and education level to assess participants perception of the character’s stress . Participants first read the instructions and then read the randomly assigned short story. Next, participants completed the Cinco Perceived Stress Scale. The scale consisted of 5 questions that ranged from 1 (not at all) to 7 (completely). The question used to assess participants perceived stress was: “Thinking of the person in the story ,how stressed do you think they are from 1( not at all) to 7 ( completely)?”. The purpose of this questionnaire was to measure their perception of the character’s stress levels. Participants then completed a demographics questionnaire and then were debriefed on the research subject .
Results
In order to examine the effect of financial compensation and education levels on stress , we conducted an ANOVA with financial compensation and education level as the independent variable and stress as the dependent variable. The main effect of financial compensation was not significant, F(30)= 3.62, p=.067, pη2=.108 . The main effect of education levels was not significant, F(30)=0.02, p=.891, pη2=.001. Among participants in the above average financial compensation category , those with a college degree (M=4.1 SD=1.2) were perceived to have less stress than those without a college degree (M=4.6 SD=1.5). However , among participants with below average financial compensation conditions those with a college degree (M=5.5 SD=1.14) were perceived to have more stress than those without a college degree (M=4.8 SD=0.9) . The interaction between financial compensation and education levels was not significant, F(30)=x.yy,1.56, p=.22, pη2=.049.
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Discussion
This study aimed to investigate the relationship between financial compensation and stress levels while assessing the moderating effect of education level. Our results indicate that higher levels of education combined with above average financial compensation are perceived to be associated with lower levels of stress. Interestingly, participants with below average financial compensation conditions and a college degree were perceived to have more stress than those without a college degree. This may be due to the belief people with a college degree and below compensation are struggling with school debt and other financial stressors. However, before applying the results of this study it is important to notice the limitations of this study . Firstly, the sampling method used in this study may limit the generalizability of our findings. Convenient sampling was utilized through social media, due to time constraints and limited resources. For example, our sample size consisted of a majority of white participants. This lowers the external validity of the study , therefore the results are limited and may not be applicable to populations beyond our sample. Future research should focus on utilizing a more diverse and representative sample to enhance generalizability. Secondly , another notable weakness is the shortness of our questionnaire, which included only one question to assess the participants perception of stress. While this approach was more convenient and avoided possible issues like “yes-saying”, it does not allow us to have a comprehensive understanding of the participants perception of stress . Factors that could have been overlooked include but are not limited to : job demands, social support, race and possibly cultural background . In the future, researchers would benefit from using a more comprehensive assessment to better understand the complexity of these relationships. In conclusion, despite these limitations, this study provides valuable insight into the relationship between financial compensation, education, and stress. Organizations should consider the differential impact of compensation on employee well-being based on educational background and prioritize strategies aimed at enhancing compensation satisfaction to alleviate workplace stress. Future research should explore the relationship between these variables, taking into consideration our limitations, in order to improve employee health and productivity in the workplace .
sources
American psychological association . Stress in America October 2022 topline data. https://www.apa.org/news/press/releases/stress/2022/october-2022-topline-data.pdf