People Management Skills, Employee Attrition, and Manager Rewards: An Empirical Analysis

Mitchell Hoffman and Steven Tadelis

No 24360, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: How much do a manager’s interpersonal skills with subordinates, which we call people management skills, affect employee outcomes? Are managers rewarded for having such skills? Using personnel data from a large, high-tech firm, we show that survey-measured people management skills have a strong negative relation to employee turnover. A causal interpretation is reinforced by research designs exploiting new workers joining the firm and manager moves. However, people management skills do not consistently improve most observed non-attrition outcomes. Better people managers themselves receive higher subjective performance ratings, higher promotion rates, and larger salary increases.

JEL-codes: D23 J24 J33 L23 M50 (search for similar items in EconPapers)
Date: 2018-02
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-hrm and nep-lma
Note: CF LS PR
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Citations: View citations in EconPapers (11)

Published as Mitchell Hoffman & Steven Tadelis, 2021. "People Management Skills, Employee Attrition, and Manager Rewards: An Empirical Analysis," Journal of Political Economy, vol 129(1), pages 243-285.

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Journal Article: People Management Skills, Employee Attrition, and Manager Rewards: An Empirical Analysis (2021)
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