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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 managers moving jobs. However, people management skills do not consistently improve non-attrition outcomes. Better people managers are themselves more likely to receive higher subjective performance ratings and to be promoted.

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