Employers’ Demand for Personality Traits and Provision of Incentives

We measure firms’ demands for personality traits from job ads and assess how these demands relate to the incentives firms offer. The demand measures produce intuitive rankings of occupations in terms of personality requirements and, at the occupation-level, are positively correlated with the traits of workers in those occupations for all traits except emotional stability. Employers primarily demand workers who are extroverted, conscientious, and open-to-experience. Firms seeking conscientious workers are less likely to offer incentive pay and promotion opportunities, which suggests that personality demands interact with the optimal design of pay if conscientious workers require fewer incentives to elicit effort.