The effect of arbitration program characteristics on applicants' intentions toward potential employers

The authors examined intentions toward prospective employers with different alternative dispute resolution (ADR) policies and no ADR policy. In Study 1, students (N = 124) were randomly assigned to 1 of 4 conditions in which 2 variables, arbitration policy presence or absence and firm desirability, were manipulated. The presence of a voluntary, nonbinding arbitration policy had no impact on intentions and did not interact with firm desirability. In Study 2, students (N = 273) were randomly assigned to 1 of 8 conditions (mandatory vs. voluntary arbitration, binding vs. nonbinding arbitration, and highly desirable vs. less desirable employer). Both mandatory and binding arbitration policies were related to less favorable intentions toward firms. Predictions regarding the interaction of ADR policy and firm desirability were partially supported. Some support was found for the interaction between ADR policy and ethnicity.