Performance feedback and job search behavior: Empirical evidence from linked employer-employee data

Laura Pohlan and Susanne Steffes

No 22-048, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: In this paper, we study whether performance feedback can serve as an instrument for firms to increase employee retention. Feedback on the relative performance may affect individual job search behavior differently depending on workers' relative rank among their peers. In line with these considerations, empirical evidence based on panel employer-employee data shows that employees performing below the median decrease their turnover intentions after the implementation of a performance feedback system at the establishment level. We find no effect for employees performing above the median.

Keywords: quit behavior; performance feedback; internal labor markets; linked employer-employee data (search for similar items in EconPapers)
JEL-codes: C23 J63 M51 M54 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-bec, nep-hrm and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:22048

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