Recruiter‐Applicant Differences in Perceptions of Extrinsic Rewards

Abstract

Preferences of 602 graduating college seniors for 11 specific extrinsic rewards were compared with preference estimates given by 486 recruiters. Substantial group differences were found.

The Role of Recruitment in Achieving Goals Related to Diversity

“…• work experience, including intern ships; 13 • desire to make a contribution; 14 • expected salary and benefits; 15 • ethnicity; • gender. The published research provides some explanation for the factors that appear to be most important to those who are mak ing career decisions, as well as for the importance attached to those factors.…”

Valuations of compensation and benefit items by new entrants into the professional workforce: Do men and women differ?

“…Of the companies surveyed that offered some form of variable compensation in 2002, 65% of them offered variable compensation to all firm employees, and 85% of these eligible employees received some compensation from the plans. In addition, previous studies have consistently indicated that those entering the professional workforce are attracted by the opportunity to make a salary that is above the average paid to others with similar qualifications (Davis et al, 1991;Davis, Giles, & Feild, 1988). Considering that the use of incentive compensation is so prevalent in the United States today, along with the finding that graduating college seniors tend to be attracted by the opportunity to make above-average salaries, it seems that current entrants into the professional workforce would prefer an opportunity to make extra compensation from an incentive pay plan.…”

“…Very little formal research has been conducted on the preferences of new entrants into the professional workforce regarding benefits. However, the limited research on the topic generally indicates that new professional workforce entrants tend to prefer compensation-and security-related benefit items in comparison to time-and family-related benefits (Davis et al, 1991;Davis, Giles, & Feild, 1985;Davis et al, 1988). For example, in a study in which 487 graduating seniors were asked to rank their preference for 11 benefit options, the highest preferences were assigned to items such as a cost-of-living pay increase each year, employer-paid medical/life insurance payments, and company discount stock purchase plans, whereas low preferences were assigned to items such as flexible work hours, a shorter workday at the same salary, and the opportunity to work four 10-hour days (Davis et al, 1985).…”

“…For example, in a study in which 487 graduating seniors were asked to rank their preference for 11 benefit options, the highest preferences were assigned to items such as a cost-of-living pay increase each year, employer-paid medical/life insurance payments, and company discount stock purchase plans, whereas low preferences were assigned to items such as flexible work hours, a shorter workday at the same salary, and the opportunity to work four 10-hour days (Davis et al, 1985). In general, the only time-related benefit that was given consistently high preferences was 3 weeks of extra vacation per year (Davis et al, 1991;Davis et al, 1985Davis et al, , 1988. Finally, a more recent study asked master of business administration students to rate the importance of 23 factors found in workplaces.…”

“…Such information should include a thorough description of the organization's compensation and benefit package; however, companies often do not provide specific compensation and benefit information in their recruiting messages (Maurer et al, 1992). This is especially problematic because it has been shown that there is often a discrepancy between what company recruiters believe college students want in a compensation/benefit package and what students actually want (Davis, Feild, & Giles, 1991). Thus, an examination of what current prospective entrants into the professional workforce desire in a compensation and benefits package is warranted.…”