The Impact of Manager Ratings on Employee Outcomes

Research by Tiddellis and Hoffman indicates that manager ratings do not significantly influence employees' subjective performance, earnings, promotions, or patent applications. However, employee retention is profoundly affected; when employees transition from poorly rated managers to highly rated ones, there is a remarkable 60% reduction in attrition. This highlights that while managerial ratings may not impact various performance metrics, they are crucial for retaining talent within organizations.