Subdimensions of total rewards satisfaction and creativity among R&D employees : a moderated mediation model

Purpose: This study aims to explore the relative importance of the subdimensions of total rewards satisfaction in predicting research and development (R&D) employee creativity. In addition, the study examines the indirect effects of the subdimensions of total rewards satisfaction on creativity via work engagement and the moderating role of challenge-related work stress in the first stage. Design/methodology/approach: A two-wave design was used, in which total rewards satisfaction and challenge-related work stress were measured in the first wave. Work engagement and creativity were measured in the second wave. Dominance analysis and the latent moderated mediation model were used for the data analyses. Findings: The analyses show that nonfinancial rewards satisfaction completely dominates indirect and direct financial rewards satisfaction when predicting creativity. Indirect financial rewards satisfaction completely dominates direct financial rewards satisfaction when predicting creativity. Work engagement mediates the relationships between the subdimensions of total rewards satisfaction and creativity. Challenge-related work stress moderates the relationships between the subdimensions of total rewards satisfaction and work engagement and the indirect effects of the subdimensions of total rewards satisfaction on creativity via work engagement. Practical implications: The results imply that managers should set challenge demands for R&D employees and try to improve their total rewards satisfaction, especially their nonfinancial and indirect financial rewards satisfaction, for them to be more creative. Originality/value: This empirical study contributes to the literature by comparing the relative importance of the different dimensions of total rewards satisfaction in predicting creativity. The study also clarifies how (through work engagement) and when (based on challenge-related work stress) the subdimensions of total rewards satisfaction are positively related to R&D employees' creativity.