Management Accounting Section Midyear Meeting

Social Comparison and the Value of Performance Trajectory Information: A Field Experiment in the Workplace

• In Event: Break and Research Exhibition 2
  In Paper Session: Room 1

Abstract

New workers often compare themselves to their high-achieving senior coworkers, but they often do so without knowing how senior workers performed in the early stages of their careers. This upward social comparison under incomplete information can have adverse effects on new workers’ well-being and employee turnover. We study whether providing performance trajectory information to new workers mitigates the negative consequences of performance comparison. In a large-scale randomized control trial at a leading multinational spa chain in China, we sent workers twice-weekly messages on the performance trajectories of their high-performing senior coworkers. This information treatment reduces the attrition rate of new workers by 12%, and the effect is most pronounced for the more productive workers. The lower attrition rate is mostly driven by an improvement in new workers' stress levels and mental health due to the lowering of their beliefs about senior coworkers' past performance. Overall, this study demonstrates that showing junior workers the "Curricula Vitae" of senior workers mitigates social comparison costs within firms.

Author

• Yucheng Liang, Carnegie Mellon University