Journal of Management 2002 28(2) 195–215 Benefit System and Benefit Level Satisfaction: An Expanded Model of Antecedents and Consequences

distinguishes between satisfaction with pay level and the system that determines and delivers pay, but has neglected to make a similar distinction with respect to benefits. We (1) develop a measure of the benefit system satisfaction construct, (2) examine the discriminant validity of benefit system satisfaction, and (3) examine aspects of procedural and distributive justice and transaction costs as they relate to benefit satisfaction. Confirmatory factor analysis of a comprehensive pay satisfaction measure supported a separate benefit system satisfaction dimension. Structural equation models supported common and unique antecedents of benefit system and benefit level satisfaction, and supported their relationships with global job satisfaction. © 2002 Elsevier Science Inc. All rights reserved. In a recent review of the compensation satisfaction literature, Heneman and Judge (2000) lament the fact that research in the area of compensation attitudes has not kept up with the changes in compensation systems that are occurring within organizations. This statement is certainly true with respect to employee attitudes toward their benefits. Despite the growing importance of employee benefits as both a significant expense to business and an essential tool for recruitment and retention, organizational researchers have been slow to respond t