What happens when workers rate their bosses? A Chinese carmaker found that it led to better leadership, happier teams, and higher productivity. A Wharton study shows that giving workers a voice not only boosts morale but also cuts turnover and improves teamwork.
The study ran for eight months. Workers on production lines rated their managers on fairness, empathy, adaptability, and openness to ideas. For six months, these ratings affected the managers’ performance scores, which influenced bonuses, raises, and promotions. In the last two months, the ratings continued but no longer affected pay. Yet the changes lasted.
Improving performance
Managers who received feedback improved their behavior. They encouraged workers more and criticized them less. In response, workers performed better and earned more.
The numbers tell the story. Employees in the feedback group were 6.2 percentage points less likely to quit—a 50% drop in turnover. That is a big deal in manufacturing, where high turnover is common. In China, the average turnover rate in 2016 was 20.8%, with some industries reaching 40%.
Lower turnover boosted productivity. While individual performance stayed the same, team output increased by 2.3%. Keeping trained workers matters—new hires take time to get up to speed.
Lasting impact
Even after the experiment ended, managers who had been rated stayed more supportive and empathetic. New hires, who never took part in the feedback system, still noticed the difference.
“This shows that better management doesn’t need constant oversight or costly programs,” the researchers say.
The study challenges the belief that managers should be rewarded only for hitting performance targets. It suggests that treating workers fairly and listening to them can improve retention and productivity.
“Bonuses are expensive, and they aren’t always needed,” the authors note.
The findings apply beyond manufacturing. Industries with high turnover, like hospitality, could use similar methods. Regular feedback creates a culture of accountability, improves morale, and keeps workers longer.
Convinced by the results, the Chinese carmaker expanded the system to all its plants, covering nearly 20,000 workers. The lesson is clear: good management is about people, not just numbers. When workers speak, bosses listen. And when bosses listen, businesses thrive.
