Abstract

In this paper we explore how person-organization (P-O) ethical fit affects the tenure of employees. We argue that the ethical misfit between employees and their organization is asymmetric, such that one direction can have a stronger effect on attrition than the other. We also present the role that ethical diversity within the organization can have in mediating this effect through potential person-group (P-G) fit in subgroups or subcultures. Using a unique dataset of over 3 million vehicle emissions tests, we identify pre-hiring levels of testing fraud for individual inspectors and facilities, finding that the P-O ethical fit strongly influences the longevity of tenure. Furthermore, we show that the effects of fit on attrition are asymmetric, and that ethical diversity may limit the fit-attrition relationship. We further argue that using pre-hire behavioral data, when available, can be an important methodology in understanding the role of P-O fit in performance and attrition.