The Effect of Cultural Values on Pay Preferences:A Comparative Study in Turkey and the United States

摘要

We examined the relationships between cultural values and the individual's pay preference. Culture is conceptualized as defined by Geert Hofstede and pay preference is defined in terms of variable versus fixed pay, individual versus group pay and seniority based pay. Data was collected in Turkey and the United States by means of an online questionnaire from a total of 162 respondents. We found significant positive relationships between uncertainty avoidance values and preference for fixed pay, and collectivist values and preference for group pay and seniority based pay. Our results suggest that cultural values should be taken into consideration when designing pay systems.