Relative Performance Information and Employee Performance: The Role of Need for Cognition.

Relative performance information (RPI) represents a potentially beneficial feedback mechanism, but its motivational effects may depend on recipients' characteristics. This paper explores whether a key employee trait—need for cognition (NFC)—moderates the motivational effects of RPI. Using a laboratory experiment, we find that an expectation of RPI enhances task performance for lower-NFC individuals by increasing effort to search for task-relevant information but has no effect for higher-NFC individuals. These results persist after controlling for RPI's informational effect. Complementary survey findings reveal that NFC correlates with age, education level, and the performance of cognitively demanding skills. Notably, although lower-NFC individuals benefit most from RPI, they are less likely to seek and receive it. These findings highlight the need for managers to strategically implement RPI to enhance its benefits. Data Availability: Data available upon request. JEL Classifications: M40. [ABSTRACT FROM AUTHOR]