The research yielded three key findings. First, manager support for fun lowers employee turnover, particularly among younger employees.

Second, fun activities increase sales performance, particularly among older employees.

Third, manager support for fun lowers sales performance irrespective of age.

"The question becomes, is the productivity loss associated with manager support for fun worth the significant reduction in employee turnover?" Tews said.

"We think if you have both manager support for fun and fun activities, the dip you see in productivity as a result of manager support for fun may be cancelled out by the increase in productivity you see as a result of fun activities. In this scenario, you also see the greatest reduction in employee turnover," Tews said.

"The take-home message is that fun can work, but it's not a panacea," Tews said.

The study appears in Cornell Hospitality Quarterly.

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