Compensation satisfaction: Its measurement and dimensionality.

This research examined the influence of contextual variables on the factor structure of Heneman and Schwab's (1985) Pay Satisfaction Questionnaire (PSQ) and further explored the dimensionality of the compensation satisfaction construct. The PSQ is intended to measure four aspects of compensation: pay level, pay raises, pay structure-administration, and benefits. Previous research showed support for the pay level and benefit subscales, with equivocal results for the raises and structure-administration subscales. In this study, using data obtained from 1,007 employees of a manufacturing firm and 95 nursing home employees, we found that PSQ factor structure varied by employee job classification (salaried-exempt, salaried nonexempt, and hourly) and may also vary by other contextual factors such as company labor-relations compensation policy. The question of the underlying dimensionality of the compensation satisfaction construct cannot be adequately addressed by use of the current version of the PSQ. Implications for research and practice are discussed. (PsycINFO Database Record (c) 2010 APA, all rights reserved)