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The role of peers in estimating tenure-performance profiles: evidence from personnel data

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  • de Grip, A.

    (Research Centre for Educ and Labour Mark)

  • Sauermann, J.

    (Research Centre for Educ and Labour Mark)

  • Sieben, I.J.P.

Abstract

This paper investigates how newly hired workers learn on the job and the extent to which this learning is affected by their co-workers’ tenure. We estimate tenure-performance profiles using weekly panel data on individual workers’ performance. The results show a performance increase of 64% in the first year of the employment. We show that, during the first three months, workers placed in teams with more experienced peers have significantly steeper tenure-performance profiles than those employed in teams with less experienced peers. Our results suggest that placing new workers in more experienced teams reduces the time new hires need to become equally productive as an experienced worker by 36%, compared to being placed in less experienced teams.
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  • de Grip, A. & Sauermann, J. & Sieben, I.J.P., 2011. "The role of peers in estimating tenure-performance profiles: evidence from personnel data," ROA Research Memorandum 014, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    • Handle: RePEc:unm:umaror:2011014
    DOI: 10.26481/umaror.2011014
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    Cited by:

    1. Sauermann, Jan & Stenberg, Anders, 2020. "Assessing Selection Bias in Non-Experimental Estimates of the Returns to Workplace Training," IZA Discussion Papers 13789, Institute of Labor Economics (IZA).
    2. Alexandra E. Hill & Jesse Burkhardt, 2021. "Peers in the Field: The Role of Ability and Gender in Peer Effects among Agricultural Workers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 790-811, May.
    3. Non, Arjan & Rohde, Ingrid & de Grip, Andries & Dohmen, Thomas, 2022. "Mission of the company, prosocial attitudes and job preferences: A discrete choice experiment," Labour Economics, Elsevier, vol. 74(C).
    4. Marco Clemens & Jan Sauermann, 2024. "Making the Right Call: The Heterogeneous Effects of Individual Performance Pay on Productivity," IAAEU Discussion Papers 202405, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    5. Collewet, Marion & Sauermann, Jan, 2017. "Working hours and productivity," Labour Economics, Elsevier, vol. 47(C), pages 96-106.
    6. Zenou, Yves & Lindquist, Matthew & Sauermann, Jan, 2015. "Network Effects on Worker Productivity," CEPR Discussion Papers 10928, C.E.P.R. Discussion Papers.
    7. Andries de Grip, 2015. "The importance of informal learning at work," IZA World of Labor, Institute of Labor Economics (IZA), pages 162-162, June.
    8. Frederiksen, Anders & Hansen, Daniel Baltzer Schjødt & Flaherty Manchester, Colleen, 2022. "Does Group-Based Incentive Pay Lead To Higher Productivity? Evidence from a Complex and Interdependent Industrial Production Process," IZA Discussion Papers 14986, Institute of Labor Economics (IZA).
    9. Ferreira, Maria & de Grip, Andries & van der Velden, Rolf, 2018. "Does informal learning at work differ between temporary and permanent workers? Evidence from 20 OECD countries," Labour Economics, Elsevier, vol. 55(C), pages 18-40.
    10. Sauermann, Jan, 2014. "The Heterogeneous Effects of Bonus Pay on Performance Outcomes: Evidence from Personnel Data," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100568, Verein für Socialpolitik / German Economic Association.
    11. de Grip, Andries & Pleijers, Astrid, 2019. "Workshop attendance as a mode of learning: Evidence from the Netherlands," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    12. Spencer Bastani & Thomas Giebe & Oliver Gürtler, 2023. "Overconfidence and Gender Equality in the Labor Market," ECONtribute Discussion Papers Series 220, University of Bonn and University of Cologne, Germany.
    13. Gerards, Ruud & de Grip, Andries & Weustink, A., 2018. "Do new ways of working increase informal learning?," Research Memorandum 010, Maastricht University, Graduate School of Business and Economics (GSBE).
    14. Clemens, Marco & Sauermann, Jan, 2024. "Making the Right Call: The Heterogeneous Effects of Individual Performance Pay on Productivity," IZA Discussion Papers 17119, Institute of Labor Economics (IZA).
    15. Victoria Sevcenko & Sendil Ethiraj, 2018. "How Do Firms Appropriate Value from Employees with Transferable Skills? A Study of the Appropriation Puzzle in Actively Managed Mutual Funds," Organization Science, INFORMS, vol. 29(5), pages 775-795, October.
    16. Elizabeth Sheedy & Le Zhang & Dominik Steffan, 2022. "Scorecards, gateways and rankings: remuneration and conduct in financial services," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3239-3283, September.
    17. Jason Jabbari & Haotian Zheng & Stephen Roll & Daniel Auguste & Oren Heller, 2024. "How Did Reskilling During the COVID-19 Pandemic Relate to Entrepreneurship and Optimism? Barriers, Opportunities, and Implications for Equity," Journal of Family and Economic Issues, Springer, vol. 45(2), pages 410-429, June.
    18. Andries De Grip, 2024. "The importance of informal learning at work: On-the-job learning is more important for workers’ human capital development than formal training," IZA World of Labor, Institute of Labor Economics (IZA), pages 1622-1622, March.
    19. de Grip, Andries & Pleijers, Astrid, 2019. "Workshop attendance as a mode of learning:," Research Memorandum 024, Maastricht University, Graduate School of Business and Economics (GSBE).

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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