In Simple Words
Imagine evaluating two assembly line workers who both complete five machines per day, but one worker completes them independently while the other requires a supervisor to step in three times to correct mistakes. Measuring supervisory overhead captures true worker productivity better than simple output counts.
Research question
Evaluating worker job performance solely based on task completion ignores hidden operational costs, such as the amount of supervisory intervention required to correct errors.
Participants
N = 561 male labor market participants in urban Kolkata, India.
Study Design
Standardized composite scoring metric combining puzzle completion time, completion success, and incorrect attempts (proxying required supervisor time).
Results
Standardized composite scores incorporating supervisory friction penalties differentiated referral performance and proved sensitive to referral incentives (mean = -0.009, SD = 1.00 across cognitive tasks).
Takeaway
Incorporate supervisor error-correction frequency and time-to-completion into performance metrics rather than relying exclusively on total output volume.