Emotional Salary: beyond traditional compensation

Abstract

Emotional salary is an essential concept in human resources management that goes beyond traditional financial compensation, focusing on meeting employees' emotional and psychological needs in the workplace. Its importance is enhancing employee satisfaction, retention, and engagement, which influences organizational performance. Over the years, various theories have indirectly substantiated the relevance of emotional salary. These include Maslow's hierarchy of needs, Herzberg's Two-Factor Theory, and Vroom's Expectancy Theory, among others. These theories have provided a conceptual framework for understanding how emotional dimensions, such as recognition and personal development, can impact employee motivation and satisfaction. This article provides a literature review on emotional salary and its relationship with the work environment. The methodology used for this review was based on the collection and analysis of previous studies and research on the subject. Several key dimensions of emotional salary were identified, including development opportunities, work-life balance, psychological well-being, the work environment, and organizational culture. The results highlight that, despite its growing recognition, the literature on emotional salary still needs to be expanded compared to more traditional organizational variables. Additionally, the need for further research into emotional salary and the formulation of more accurate and accessible measurement methods is emphasized. Emotional salary is an emerging trend expected to rapidly expand the academic literature in human resources and organizational management.