A comprehensive model and measure of compensation satisfaction

We describe the results of two studies designed to develop a comprehensive theoretical model and measure of compensation satisfaction. Our typology of compensation satisfaction consists of seven dimensions: four for pay (level, structure, raises, and variable pay procedures satisfaction) and three dimensions for benefits (level, determination, and administration satisfaction). We used new and existing items to develop the Comprehensive Compensation Satisfaction Questionnaire. In Study 1, we report the results of exploratory factor analysis that supports a seven‐factor structure. In Study 2, confirmatory factor analysis supported the same seven‐factor structure in a different sample. We examined relationships between the compensation satisfaction dimensions and their antecedents and consequences. Seven hypotheses regarding differential antecedents of compensation satisfaction were supported. Satisfaction with aspects of compensation procedures were related to perceived organizational support, and perceived organizational support mediated the relationships between these compensation satisfaction procedures and affective commitment and turnover intentions. Our final analysis yielded a 29‐item scale (including eight new items) which we recommend for use in future compensation satisfaction research.