Measuring Total Rewards Satisfaction: A Scale Development Study

Total Rewards Strategy has been used as a viable strategy to motivate and retain employees across sectors. It has also been widely studied by the scholars and researchers across the globe leading to a number of scales measuring total rewards measuring preferences, and perceptions, ignoring its satisfaction aspect. However, the existing scales have been found to display construct related weaknesses in terms of under-representation of total rewards as a multidimensional construct and measuring it as a reflective higher-order construct. Analyzing findings of literature review and factor analyses, the authors confirm total rewards as a second-order formative construct. The purpose of this study is to develop a valid and reliable measure of total rewards satisfaction (TRS) as a formative higher order construct. Different phases of quantitative validations were carried out with a new data set for each of the studies viz. content validity (n = 13 experts), exploratory factor analysis (n = 180) for determining factorial structure of the scale, first-order confirmatory composite analysis (n = 215) and second-order confirmatory analysis (n= 120) confirm a six-dimensional structure of 23-item TRS scale. The psychometric properties of the scale have also been reported. The scale demonstrates internal consistence, reliability and construct validity.