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.Key words compensation . employee benefits . recruitment . medical insurance . retirement plan Compensation systems have long been considered as a factor impacting organizations' ability to attract and retain employees (Bretz et al. 1989;Lawler 1990). The effect of non-wage benefit packages on the attraction of employees would seem to be especially important since "fringe" benefits as a percentage of total payroll costs are growing (Bureau Employ Respons Rights J (2010) 22:195-211 of Labor Statistics 2006Harris 1993;Hart and Carraher 1995), and research suggests that employees undervalue typical benefit packages by as much as 30% (Gerhart and Milkovich 1992). However, surprisingly little empirical research has been conducted to determine how benefits influence individuals' job choice decisions. Therefore, 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. Additionally, individuals' decisions may be affected by work values and attitudes as well as background and demographic variables (e.g., Judge and Bretz 1992;Hyde and Weathington 2006;Ravlin and Meglino 1987a, b). Thus the secondary purpose of this study was to examine the relation of various background and attitudinal variables on the importance of the four measured aspects of the compensation package on job choice decisions.