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

Michele Belot and Rustam Hakimov

No 26033, RFBerlin Discussion Paper Series from ROCKWOOL Foundation Berlin (RFBerlin)

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.

Keywords: Workplace Collegiality; Climate; Bonding; Field Experiment (search for similar items in EconPapers)
JEL-codes: C93 J32 M54 (search for similar items in EconPapers)
Date: 2026-01
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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:26033

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