Who negotiates a higher starting salary?

Abstract

Purpose – The aim of this study is to examine how personality traits influence interviewees’ negotiation decisions as well as whether and to what extent such effects are moderated by one’s gender and risk attitudes. Design/methodology/approach – An experiment was designed in which participants acted as interviewees and were asked to decide whether to initiate negotiations to potentially increase their salary and benefits. A logistic regression analysis and conditional process analysis were used to examine the effects of personality traits (agreeableness and extraversion) on the initiation of salary negotiation, as well as whether and to what extent such effects are moderated by one’s gender and risk attitudes. Findings – A significant direct influence of extraversion and risk attitude on a job applicant’s initiation of salary negotiations. It was also found that risk attitudes moderate the effect of personality traits (i.e. agreeableness and extraversion) on individuals’ negotiation decisions. This study thus indicates that the effects of personality traits on job applicants’ initiation of salary negotiations are contingent on their risk attitudes. Originality/value – To the authors’ knowledge, this study is the first to investigate the direct as well as moderated effects of personality traits on interviewees’ negotiation behavior in job interviews. The findings of this study thus significantly contribute to the literature in this line of research. Human resource professionals, as well as job seekers, may also benefit from the findings and implications of this study.

Testing the relationships between narcissism, risk attitude, and income with data from a representative German sample

“…Furthermore, risk attitudes are associated with other variables that are positively related to income. A study with business students who had job interviews found direct effects of risk attitudes on the probability of nego tiating higher starting salaries, as well as moderating effects of risk attitudes on the relationships between the Big Five personality traits and the probability of negotiating higher starting salaries (Xiu et al, 2015). Furthermore, individuals with a higher career risk attitude tend to change employers more often and are more likely to have founded their own organization, business, or start-up (Rauch & Frese, 2000).…”