Opinion of headhunters about the ability of strabismic subjects to obtain employment

BACKGROUND: Through the opinion of Swiss headhunters, we wanted to determine the influence of strabismus on the ability to obtain employment. METHODS: Out of 31 randomly selected Swiss headhunters, 20 could be interviewed using a validated questionnaire. RESULTS: Forty-seven percent of the headhunters judged that strabismic subjects have more difficulties in obtaining a job. Gender has no influence on discrimination (p > 0.1). Asked about six facial disfigurements, strabismus was found to have the second largest negative impact on employment directly after acne. Strabismus was estimated to decrease the attractiveness of job applicants (p < 0.0001) and to have a negative impact on the overall judgment of a potential employer (p < 0.05). CONCLUSIONS: Visible strabismus influences negatively the ability to obtain a job. Because of its impact on the employability of a person, we believe that strabismus surgery in adults cannot be considered to be only a beautifying procedure.

An MBLP model for scheduling assessment centers

Firms aim at assigning qualified and motivated people to jobs. Human resources managers often conduct assessment centers before making such personnel decisions. By means of an assessment center, the potential and skills of job applicants can be assessed more objectively. For the scheduling of such assessment centers, we present a formulation as a mixed-binary linear program and report on computational results for four real-life examples.

Essays on behavioral aspects of the design and disclosure of compensation contracts

This thesis consists of four essays on the design and disclosure of compensation contracts. Essays 1, 2 and 3 focus on behavioral aspects of mandatory compensation disclosure rules and of contract negotiations in agency relationships. The three experimental studies develop psychology- based theory and present results that deviate from standard economic predictions. Furthermore, the results of Essay 1 and 2 also have implications for firms’ discretion in how to communicate their top management’s incentives to the capital market. Essay 4 analyzes the role of fairness perceptions for the evaluation of executive compensation. For this purpose, two surveys targeting representative eligible voters as well as investment professionals were conducted. Essay 1 investigates the role of the detailed ‘Compensation Discussion and Analysis’, which is part of the Security and Exchange Commission’s 2006 regulation, on investors’ evaluations of executive performance. Compensation disclosure complying with this regulation clarifies the relationship between realized reported compensation and the underlying performance measures and their target achievement levels. The experimental findings suggest that the salient presentation of executives’ incentives inherent in the ‘Compensation Discussion and Analysis’ makes investors’ performance evaluations less outcome dependent. Therefore, investors’ judgment and investment decisions might be less affected by noisy environmental factors that drive financial performance. The results also suggest that fairness perceptions of compensation contracts are essential for investors’ performance evaluations in that more transparent disclosure increases the perceived fairness of compensation and the performance evaluation of managers who are not responsible for a bad financial performance. These results have important practical implications as firms might choose to communicate their top management’s incentive compensation more transparently in order to benefit from less volatile expectations about their future performance. Similar to the first experiment, the experiment described in Essay 2 addresses the question of more transparent compensation disclosure. However, other than the first experiment, the second experiment does not analyze the effect of a more salient presentation of contract information but the informational effect of contract information itself. For this purpose, the experiment tests two conditions in which the assessment of the compensation contracts’ incentive compatibility, which determines executive effort, is either possible or not. On the one hand, the results suggest that the quality of investors’ expectations about executive effort is improved, but on the other hand investors might over-adjust their prior expectations about executive effort if being confronted with an unexpected financial performance and under-adjust if the financial performance confirms their prior expectations. Therefore, in the experiment, more transparent compensation disclosure does not lead to more correct overall judgments of executive effort and to even lower processing quality of outcome information. These results add to the literature on disclosure which predominantly advocates more transparency. The findings of the experiment however, identify decreased information processing quality as a relevant disclosure cost category. Firms might therefore carefully evaluate the additional costs and benefits of more transparent compensation disclosure. Together with the results from the experiment in Essay 1, the two experiments on compensation disclosure imply that firms should rather focus on their discretion how to present their compensation disclosure to benefit from investors’ improved fairness perceptions and their spill-over on performance evaluation. Essay 3 studies the behavioral effects of contextual factors in recruitment processes that do not affect the employer’s or the applicant’s bargaining power from a standard economic perspective. In particular, the experiment studies two common characteristics of recruitment processes: Pre-contractual competition among job applicants and job applicants’ non-binding effort announcements as they might be made during job interviews. Despite the standard economic irrelevance of these factors, the experiment develops theory regarding the behavioral effects on employees’ subsequent effort provision and the employers’ contract design choices. The experimental findings largely support the predictions. More specifically, the results suggest that firms can benefit from increased effort and, therefore, may generate higher profits. Further, firms may seize a larger share of the employment relationship’s profit by highlighting the competitive aspects of the recruitment process and by requiring applicants to make announcements about their future effort. Finally, Essay 4 studies the role of fairness perceptions for the public evaluation of executive compensation. Although economic criteria for the design of incentive compensation generally do not make restrictive recommendations with regard to the amount of compensation, fairness perceptions might be relevant from the perspective of firms and standard setters. This is because behavioral theory has identified fairness as an important determinant of individuals’ judgment and decisions. However, although fairness concerns about executive compensation are often stated in the popular media and even in the literature, evidence on the meaning of fairness in the context of executive compensation is scarce and ambiguous. In order to inform practitioners and standard setters whether fairness concerns are exclusive to non-professionals or relevant for investment professionals as well, the two surveys presented in Essay 4 aim to find commonalities in the opinions of representative eligible voters and investments professionals. The results suggest that fairness is an important criterion for both groups. Especially, exposure to risk in the form of the variable compensation share is an important criterion shared by both groups. The higher the assumed variable share, the higher is the compensation amount to be perceived as fair. However, to a large extent, opinions on executive compensation depend on personality characteristics, and to some extent, investment professionals’ perceptions deviate systematically from those of non-professionals. The findings imply that firms might benefit from emphasizing the riskiness of their managers’ variable pay components and, therefore, the findings are also in line with those of Essay 1.

Side effects of gender-fair language: How feminine job titles influence the evaluation of female applicants

In many languages, feminization has been used as a strategy to make language more gender-fair, because masculine terms, even in a generic function, exhibit a male bias. Up to date, little is known about possible side effects of this language use, for example, in personnel selection. In three studies, conducted in Polish, we analyzed how a female applicant was evaluated in a recruitment process, depending on whether she was introduced with a feminine or masculine job title. To avoid influences from existing occupations and terms, we used fictitious job titles in Studies 1 and 2: diarolożka (feminine) and diarolog (masculine). In Study 3, we referred to existing occupations that varied in gender stereotypicality. In all studies, female applicants with a feminine job title were evaluated less favorably than both a male applicant (Study 1) and a female applicant with a masculine job title (Studies 1, 2, and 3). This effect was independent of the gender stereotypicality of the occupation (Study 3). Participants' political attitudes, however, moderated the effect: Conservatives devaluated female applicants with a feminine title more than liberals (Studies 2 and 3).

Reducing women’s lack of fit with leadership? Effects of the wording of job advertisements

Linguistic forms which refer to individuals impact mental representations of these individuals: When masculine generics are used, women tend to be cognitively underrepresented, whereas feminine–masculine word pairs are associated with a higher cognitive inclusion of women. The present research investigates whether linguistic forms affect women’s perceived lack of fit with leadership positions, which is particularly pronounced for high-status leadership positions. In a hiring-simulation experiment (N = 363), we tested the effects of different linguistic forms used in German-language job advertisements: (1) masculine forms (e.g., Geschäftsführer, ‘CEO, masc.’); (2) masculine forms with (m/f) (e.g., Geschäftsführer (m/w), ‘CEO, masc. (m/f)’); and (3) word pairs (e.g., Geschäftsführerin/Geschäftsführer, ‘CEO, fem./CEO, masc.’). The job ads announced either a high- or low-status leadership position. Results showed that female applicants were perceived to fit less well with the high-status position than male applicants when either the masculine or the masculine form with (m/f) was used––even though they were perceived to be equally competent. However, female and male applicants were perceived as fitting the high-status leadership position similarly well when word pairs were used.