Leadership

Ethical Misfit Or The Demand For Leniency? The Impact Of Behavioral Attributes On Employee Tenure

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Executive Summary

This paper argues that while ethical misfit between firms and employees may increase the likelihood of attrition, the interaction between organizational and employee ethics may be much more complex. Customer demand for individual and organizational characteristics may impact employee tenure independent of one another. Furthermore, misfit may also create complementarities that benefit both the employer and employee. Author used over six million vehicle emissions tests to empirically demonstrate that separating these effects is critical to understanding the role of misfit. It's found that both inspector and facility leniency lead to longer tenure, with little evidence of interaction between employer and employee ethics.

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