Abstract
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.