Individual Differences in Attractiveness of Jobs Based on Compensation Package Components

The primary purpose of the present study was to examine the effect of salary level, amount of leave per year, the extent of cost-sharing for health care insurance coverage, and type of retirement plan on individuals’ job choice within a United States employment context. Salary, amount of vacation time, cost of health insurance, and type of retirement plan predicted the likelihood that individuals would apply for a position as well as accept the position if it were offered to them. While the type of retirement plan had an effect, there was virtually no difference based on whether the retirement plan was a defined benefit pension plan, a 401 K plan, or a company stock plan. There were no interactions between compensation plan components suggesting recruits do not consider salary as a substitute for benefits. Marital status, benefit history, attitudes towards earnings, and risk propensity predicted the relative importance placed on salary and specific benefits in the compensation package.