Managers Have Limited Impact on Employee Outcomes, Except for Employee Retention

The ratings of managers don't seem to impact employee performance, income, promotions, or patent applications. However, employee retention is affected. When employees move from a low-rated to a high-rated manager, attrition drops by 60%. Good managers retain better employees, while bad managers drive away the best. The Tiddellis and Hoffman paper published in 2021 in the Journal of Political Economy adds to the economics literature on bosses and management.