Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265421 
Year of Publication: 
2022
Series/Report no.: 
ZEW Discussion Papers No. 22-048
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
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.
Subjects: 
quit behavior
performance feedback
internal labor markets
linked employer-employee data
JEL: 
M51
M54
J63
C23
Document Type: 
Working Paper

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