Can gender and race dynamics in performance appraisals be disrupted? The case of social influence

Abstract

We document gender and race dynamics in performance evaluations in a multi-national company, examining the impacts of a feature of the performance appraisal process: managers’ knowledge of employees’ self-evaluations. Generally, (White) women were rated higher than men and people of color were rated lower than White employees. Women of color gave themselves the lowest self-ratings. When self-evaluations were unavailable due to a quasi-exogenous shock, manager and self-ratings were less correlated. However, gender and race gaps remained unchanged as managers anchored on previous years’ ratings. Based on suggestive evidence, women of color without an employment history benefitted from their self-ratings not being shared.