THE EFFECTS OF INDIVIDUAL AND CONTEXTUAL ATTRIBUTES ON THE SIZES OF RECOMMENDED SALARY INCREASES

Abstract

In a series of experiments, college students, line managers, and compensation managers allocated salary increases to hypothetical job holders who varied in the criticality of their positions for accomplishment of organizational goals, occupational marketability, job performance, personal need for money, and increase in capability since the last performance review. Results indicated that though performance had the largest impact, a number of nonperformance factors also influenced the recommendations. Salary recommendations were lower when constrained by a budget, and performance, growth in capabilities, marketability, and criticality were all significantly related to the magnitudes of suggested increases.