Dispositional Influences on Pay Preferences

This study tested whether individual measures of intrinsic and extrinsic motivation and positive and negative affect predict a job seeker's attraction to organizations offering merit pay, skill-based pay, or broad banding. Intrinsic motivation was found to predict a decision for merit pay while extrinsic motivation did not. Hierarchical regression analysis results suggested that job seekers who were intrinsically motivated or experienced positive affect were attracted to pay plans that offer high levels of personal involvement. Individuals who were extrinsically motivated or experienced negative affect were attracted to pay plans that offer higher than average starting salaries.