A contingency perspective of the importance of PJ fit and PO fit in employee selection

Purpose The purpose of this paper is to propose a contingency perspective that describes the relative importance of person‐job (PJ) fit and person‐organization (PO) fit as selection criteria for hiring various types of employees. Design/methodology/approach Drawing on the theories of psychological contracts, human capital and cosmopolitan‐local perspective, propositions are developed regarding the relative importance of PJ fit and PO fit in specific hiring situations. Findings The propositions developed in this paper suggest that PJ fit will be more important than PO fit when organizations hire employees to form transactional psychological contracts, to obtain general human capital, and/or who are categorized as cosmopolitans. On the other hand, it is suggested that PO fit will be more important than PJ fit when organizations hire employees to form relational psychological contracts, to develop firm‐specific human capital, and/or who are likely to become locals. Research limitations/implications Further empirical and theoretical work should be conducted to elaborate the contingency perspective. A more comprehensive contingency theory of person‐environment (PE) fit could include other types of PE fit, other contingency variables, and cover a wider range of management practices. Practical implications Organizations should be aware of the trade‐off between PJ fit and PO fit in the selection process, and carefully examine what type of employees they will hire in order to determine the relative weights of PJ fit and PO fit as selection criteria. Originality/value This paper is the first attempt to consider the different types of employees and employment relationships that determine the relative importance of PJ fit and PO fit in selecting employees. It is done through incorporating different theoretical perspectives.