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Performance feedback and job search behavior: Empirical evidence from linked employer-employee data

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  • Pohlan, Laura
  • Steffes, Susanne

Abstract

In this paper, we study whether performance feedback can serve as an instrument for firms to increase employee retention. Feedback on the relative performance may affect individual job search behavior differently depending on workers' relative rank among their peers. In line with these considerations, empirical evidence based on panel employer-employee data shows that employees performing below the median decrease their turnover intentions after the implementation of a performance feedback system at the establishment level. We find no effect for employees performing above the median.

Suggested Citation

  • Pohlan, Laura & Steffes, Susanne, 2022. "Performance feedback and job search behavior: Empirical evidence from linked employer-employee data," ZEW Discussion Papers 22-048, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:22048
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    References listed on IDEAS

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    More about this item

    Keywords

    quit behavior; performance feedback; internal labor markets; linked employer-employee data;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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