Employee Voluntary and Involuntary Turnover and Organizational Performance: Revisiting the Hypothesis from Classical Public Administration

Does organizational performance affect employee turnover? A re‐examination of the turnover–performance relationship

“…Despite some findings that the impacts of voluntary and involuntary turnover on organizational performance are quite similar (Batt and Colvin ; Hancock et al ), robust evidence has suggested otherwise (Park and Shaw ). For example, involuntary turnover has been found to have a positive relationship with organizational performance because employees with performance deficiencies or behavioural problems are dismissed and replaced (Holtom et al ; Lee ), yet An () found an inverted‐U‐shaped relationship between the two, suggesting that a higher level of involuntary turnover is harmful. Both An () and Lee () failed to find a statistically significant relationship between voluntary turnover and organizational performance, while Moon () found an inverted‐U relationship between the two with data from US federal agencies.…”

“…For example, involuntary turnover has been found to have a positive relationship with organizational performance because employees with performance deficiencies or behavioural problems are dismissed and replaced (Holtom et al ; Lee ), yet An () found an inverted‐U‐shaped relationship between the two, suggesting that a higher level of involuntary turnover is harmful. Both An () and Lee () failed to find a statistically significant relationship between voluntary turnover and organizational performance, while Moon () found an inverted‐U relationship between the two with data from US federal agencies. The inconsistent findings suggest that organizational contexts may play a moderating role, and better measurement of key variables, such as organizational performance, and more rigorous statistical models may be needed to further the research.…”

“…Lee () used data from US federal agencies and found an inverted‐U relationship between employee transfer and perceived organizational performance and a linear positive relationship between involuntary turnover and perceived organizational performance. An () found an inverted‐U relationship between involuntary turnover and the performance of Florida school districts.…”

Examining the Mediation of Job Satisfaction in the Relationship between Work Stress and Turnover Intention in Textile Company

“…Employee turnover is one of the industry's most important problems (Hughes et al, 2010). In short, excessive turnover can cost organizational performance (An, 2019). Thus, it is important for any organization to investigate what factors affect turnover intention in order to understand the reasons for actual turnover.…”

Rewards and faculty turnover: An individual differences approach

“…Both situations, pull and push voluntary leaving of high-performance employees negatively affects business performance (Choi et al, 2012;Kim & Rehg, 2018;Kwon & Rupp, 2013;Park & Shaw, 2013;Price, 1977;Schwab, 1991) because institutions continue competing for valuable human capital to improve the performance, and lower the competition's competitive advantage (Gardner, 2005). When the institution disregards these two TI modalities there are negative consequences, because TI has high organizational costs (Jo, 2008); therefore, the institution must manage TI rather than minimize it (An, 2019).…”