Personality and Organizational Fit with an Up-or-Out System

This paper examines whether there is a person-organization fit for promotional systems. Two types of promotional systems are distinguished, the standard promotion and the up-or-out system. It was predicted that job seekers that are risk-seeking, confident, motivated, and energetic would have less aversion to the up-or-out system than other job seekers. Questionnaires were spread amongst students and recent graduates through social media and at Erasmus University Rotterdam, with a total of 143 respondents. On average, a 9% higher salary is required to prompt application for a firm with an up-or-out promotional system. Especially the level of energy seems to play an important role in preferences for this promotional system.