PAY SATISFACTION: ITS MULTIDIMENSIONAL NATURE AND MEASUREMENT*

Abstract

The present study was guided by the general hypothesis that pay satisfaction is multidimensional. The Pay Satisfaction Questionnaire (PSQ) was developed to assess five dimensions of satisfaction with pay (level, benefits, raises, structure, and administration). Results on two heterogeneous samples of employees provided support for the multidimensional hypothesis, although a four‐dimensional solution (level, benefits, raises, structure/administration) provided better representation of the variance in the items studied. These four scales showed high internal consistency reliabilities. Comparison of the pay scales of the Job Descriptive Index and Minnesota Satisfaction Questionnaire with the PSQ dimensions suggested that these well‐known scales primarily measure satisfaction with pay level. Implications of the findings for pay satisfaction research, both substantive and measurement oriented, are discussed.