Optimal organizational evaluation rules deliberately distort from true output, pairing with positive or negative assortative assignment depending on whether non-discretionary advantage or effort matters more for production.
Talent Hoarding in Organizations
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abstract
Most organizations rely on managers to identify talented workers. However, managers who are evaluated on team performance have an incentive to hoard workers. This study provides the first empirical evidence of talent hoarding using personnel records and survey evidence from a large firm. Talent hoarding is self-reported by three-fourths of managers, is detectable in manager ratings of worker talent, and occurs more frequently under stronger hoarding incentives, proxied by performance-related pay, team size, and talent visibility. Using quasi-random exposure to talent hoarding, I show that hoarding deters internal job applications, inhibiting career progression and altering talent allocation in the firm.
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econ.TH 1years
2026 1verdicts
CONDITIONAL 1representative citing papers
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Evaluation and Assignment with Networked Competition and Spillovers
Optimal organizational evaluation rules deliberately distort from true output, pairing with positive or negative assortative assignment depending on whether non-discretionary advantage or effort matters more for production.