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The Value of Bonding at Work: Evidence from a Field Experiment

Author

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  • Michele Belot
  • Rustam Hakimov

Abstract

We design an intervention to foster social ties at work and evaluate its impact on performance and retention. We run a cluster-randomized field experiment in a large microfinance firm, providing small subsidies for geographically spread offices to organize biweekly social activities over three months. The intervention increases perceived collegiality and workplace friendships by about 0.2-0.25 SD. Individual productivity is unchanged, but office-level team performance in the firm's competition improves in the final intervention month and employee turnover falls by about 4-4.5 pp from a 9-13% baseline in the following months. The pattern is consistent with bonding mitigating free-riding in team tasks and raising job utility as a non-wage amenity; survey evidence suggests an additional role for reciprocity toward the firm.

Suggested Citation

  • Michele Belot & Rustam Hakimov, 2026. "The Value of Bonding at Work: Evidence from a Field Experiment," RFBerlin Discussion Paper Series 26033, ROCKWOOL Foundation Berlin (RFBerlin).
    • Handle: RePEc:crm:wpaper:26033
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    JEL classification:

    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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