Working Paper: CEPR ID: DP13125
Authors: Guido Friebel; Matthias Heinz; Nick Zubanov
Abstract: In a field experiment, a large retail chain’s CEO asked managers of treated stores “to do what they can” to reduce personnel turnover. Turnover decreases by a quarter for nine months; a reminder treatment triggers a similar decrease for a shorter period. Treated managers report shifting their time toward HR; their employees report more managerial attention and support. Store sales are unaffected, indicating that the possible performance increases related to managers spending more time on HR are neutralized by the effects of managers spending less time on customers and goods. The discernible efficiency gains occur at the firm, rather than at the store level.
Keywords: organizations; managers; randomized controlled trial; RCT; insider econometrics; communication; HR; hierarchy; personnel turnover
JEL Codes: L2; M1; M12; M5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| managerial communication (M14) | personnel turnover (J63) |
| manage treatment (I18) | personnel turnover (J63) |
| HR activities (M51) | managerial communication (M14) |
| managerial communication (M14) | employee retention (M51) |
| time on HR activities (C41) | time on customer interactions (C41) |
| manage treatment (I18) | store sales (L81) |
| career treatment (J68) | personnel turnover (J63) |