Abstract: Monetary incentives are widely used to align employee actions with employer objectives. We conducted a field experiment in a retail chain to evaluate whether an attendance bonus could reduce employee absenteeism. Apprentices in 232 stores were randomly assigned to a control group or one of two treatment groups in which a monetary or time-off attendance bonus was introduced for one year. We find that neither variant of the attendance bonus led to a systematic reduction in absenteeism. On the contrary, the monetary attendance bonus increased absenteeism substantially by around 50% on average, which corresponds to more than five additional days absent per employee and year. This effect was driven by the most recently hired apprentices. Survey results reveal that the monetary attendance bonus shifted the perception of absenteeism as acceptable behavior. The backfiring effect persisted beyond the end of the experiment, indicating a lasting erosion of social norms.

Abstract: This study provides evidence of the behavioral consequences of impending termination, utilizing comprehensive firm data on 3,340 employees of a retail chain and a unique institutional setting. Employees who were dismissed exhibit a sharp increase in absenteeism around the time they were given notice. In contrast, employees who resigned show only a moderate increase in absenteeism toward the end of their employment relationship, which is, however, not particularly pronounced around the time they gave notice. The conclusion of a mutual termination agreement between the employer and the employee even tends to be followed by a decrease in absenteeism.

Abstract: We present a natural field experiment on promoting pay equity through simple modifications to the salary review process in a large technology firm, involving 623 middle managers and 8,951 employees. Our treatments provided for a gender-blind reallocation of the salary increase budget available to middle managers aimed at pay equity, along with different variants of corresponding decision guidance. All treatments substantially reduced the gender gap in salary increases, going well beyond a purely mechanical effect of the budget reallocation. Moreover, the treatments do not appear to have undermined warranted performance differentiation in salary increases.

Abstract: This study examines the relationship between absenteeism and firm performance using data on 1,387 stores of a retail chain, combined with public health data, covering a 36-month period. Crucially, the relationship between absenteeism and sales is not monotonic. Instead, it exhibits an inverted U-shape. This indicates that a reduction in absenteeism does not necessarily result in improved firm performance. In fact, moderate absenteeism is associated with higher sales than perfect attendance. Moreover, if the actual level of absenteeism is below the level expected due to the regional acute spread of respiratory disease, this is associated with lower sales than if both align. A similar relationship is also observed between absenteeism and measures of service quality. Endogeneity concerns are addressed using fixed effects regression and instrumental variable estimation. In conclusion, the results demonstrate that absenteeism is not generally detrimental to firm performance. It is therefore not advisable to attempt to avoid absenteeism altogether.