The aim of this research project was the investigation of the link between an employers` use of human resource management practices and employees` perceived quality of work as well as their decision to stay with their employer. In addition to pursuing the research questions we further developed the Linked Personnel Panel (LPP), a combined employer and employee panel survey on the use of personnel management practices and employee perceptions. One of the innovations in the employer survey was to introduce questions that measure both changes in HR policies and the reasons for these changes, helping research to single out exogenous variation that can be used for the identification of causal effects. Workers have been surveyed who remained with their employers on potential search activities on the labour market as well as potential external job offers. Our scope for the empirical analysis was further enhanced by linking our survey data with worker social security records and the IAB establishment panel.