Publication Date

September 1993


Past research has demonstrated the importance of pay level in job search and choice processes. Compensation policies other than pay level may have important effects on applicant attraction, yet there has been little research examining this possibility. The role of person-organization fit in job search and job choice decisions has also been supported. Because pay systems define an organization's expectations and culture, they may be an important organizational attribute for individuals to compare with their needs and values; thus the corresponding level of fit between compensation policies and individuals' dispositions may affect subsequent job search and choice decisions. Using several research methods and a sample of individuals currently involved in the interviewing process, this stugy examines both the main and interactive effects of various pay system attributes on job search. Resulting analyses primarily supported the hypotheses, suggesting that many facets of pay systems may have important effects on individuals' job search and choice decisions.


Suggested Citation
Cable, D. M., & Judge, T. A. (1993). Effects of compensation systems on job search decisions: An application of person-organization fit (CAHRS Working Paper #93-14). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.