Is High Employee Turnover Really Harmful? An Empirical Test Using Company Records

Glebbeek, Arie; Bax, E.H.

doi:10.5465/20159578

Cited by 158 publications

(273 citation statements)

References 13 publications

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“…Turnover impacts organizational productivity negatively by increasing costs of recruiting, and training new employees to become productive (Glebbeek and Bax, 2004;Shaw, Delery, Jenkins and Gupta, 1998). Findings from this study are therefore particularly relevant to the retail petroleum industry within a South East Asia context where consumers are not accustomed to self-service.…”

Section: Introductionmentioning

confidence: 88%

The effect of autonomy, training opportunities, age and salaries on job satisfaction in the South East Asian retail petroleum industry

Hosie

Jayashree

Tchantchane

et al. 2013

The International Journal of Human Resource Management

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South East Asian petroleum retailers are under considerable pressure to improve service quality by reducing turnover. An empirical methodology from this industry determined the extent that jobs characteristics, training opportunities, age and salary influenced the level of job satisfaction, an indicator of turnover. Responses are reported on a random sample of 165 site employees (a 68 per cent response rate) of a Singaporean retail petroleum firm. A restricted multivariate regression model of autonomy and training opportunities explained the majority (35.4 per cent) of the variability of job satisfaction. Age did not moderate these relationships, except for employees >21 years of age, who reported enhanced job satisfaction with additional salary. Human Capital theory Life Cycle theory and Job Enrichment theory are invoked and explored in the context of these findings in the South East Asian retail petroleum industry. In the South East Asian retail petroleum industry, jobs providing employees with the opportunity to undertake a variety of tasks that enhanced the experienced meaningfulness of work are likely to promote job satisfaction, reduce turnover and increase the quality of service.

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Section: Introductionmentioning

confidence: 88%

The effect of autonomy, training opportunities, age and salaries on job satisfaction in the South East Asian retail petroleum industry

Hosie

Jayashree

Tchantchane

et al. 2013

The International Journal of Human Resource Management

View full text Add to dashboard Cite

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“…Studying mortgage bank subunits, they reported that higher voluntary turnover rates were associated with increased costs per loan and less efficient loan generation, which in turn were associated with lower profitability. Glebbeek and Bax (2004) generally found negative associations between turnover rates and net result (a measure of gross sales minus labor costs). Controlling for regional differences and several other factors, the negative effects held across multiple years and for both net result and change in net result.…”

Section: Firm Performancementioning

confidence: 99%

Collective Turnover at the Group, Unit, and Organizational Levels: Evidence, Issues, and Implications

Hausknecht

Trevor

2010

Journal of Management

321

398

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Studies of the causes and consequences of turnover at the group, unit, or organizational level of analysis have proliferated in recent years. Indicative of its importance, turnover rate research spans numerous academic disciplines and their respective journals. This broad interest is fueled by the considerable implications of turnover rates predicting broader measures of organizational effectiveness (productivity, customer outcomes, firm performance) as well as by the related perspective that collective turnover is an important outcome in its own right. The goal of this review is to critically examine and extract meaningful insights from research on the causes and consequences of group, unit, and organizational turnover. The review is organized around five major "considerations," including (1) measurement and levels of analysis issues, (2) consequences, (3) curvilinear and interaction effects, (4) methodological and conceptual issues, and (5) We thank Jacob Holwerda and Shaun Werbelow for research assistance.Collective Turnover at the Group 2 Abstract Studies of the causes and consequences of turnover at the group, unit, or organizational level of analysis have proliferated in recent years. Indicative of its importance, turnover rate research spans numerous academic disciplines and their respective journals. This broad interest is fueled by the considerable implications of turnover rates predicting broader measures of organizational effectiveness (productivity, customer outcomes, firm performance) as well as by the related perspective that collective turnover is an important outcome in its own right. The goal of this review is to critically examine and extract meaningful insights from research on the causes and consequences of group, unit, and organizational turnover. The review is organized around five major "considerations," including (1) measurement and levels of analysis issues, (2) consequences, (3) curvilinear and interaction effects, (4) methodological and conceptual issues, and (5) antecedents. The review concludes with broad directions for future research.Keywords: turnover; retention; performance; organizational effectiveness Collective Turnover at the Group 3 Employee turnover is one of the most widely studied phenomena in the organizational sciences, historically receiving significant top journal attention, particularly with regard to predicting why individuals leave organizations. As part of the recent shift toward a more strategic approach to studying human resource (HR) management, however, researchers have become increasingly aware of the importance of understanding turnover at the group, unit, and organizational levels. Indeed, as of 2010, more than 100 articles have been published on turnover at these levels, over half of which appeared in the past decade alone. This literature, although largely consistent with the longstanding assumptions that turnover in the aggregate has meaningful implications for organizations, lacks a rigorous analysis of its major antecedents and consequences, a...

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“…Two-way communication helps to shape employee perceptions and aid the company in understanding its employees better (Harter et al 2002). In times when companies are striving to minimise their production costs, clearly, voluntary employee turnover can be harmful to organizational performance, and the cost of replacing an employee can range from a few thousand dollars upwards to double the employee's salary (Hinkin and Tracey 2000;Glebbeek and Bax 2004;Kubš et al 2016). …”

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confidence: 99%

Motivation Factors Influencing Senior Managers in the Forestry and Wood-Processing Sector in Slovakia

et al. 2016

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Senior managers in the forestry and wood-processing sectors in the Slovak Republic were asked to complete questionnaires. The aim of the research was to identify the importance of certain factors that affect the process of their motivation. A total of 493 senior managers were surveyed. The respondents used a five-point rating scale to rate the significance of each motivation factor, where 5 was very important and 1 was unimportant. The importance of 36 motivation factors was studied for senior managers through the use of statistical methods. Based on the study, it was concluded that the base salary is the most important factor of motivation, followed by job security as the second most important motivation factor, and the third most important factor was the fair appraisal system. Keywords INTRODUCTIONOrganizations focus on their employees to gain a competitive edge. Technology, processes, and organizational structure can be copied, but the value that competent and dedicated employees can bring to companies cannot be easily taken away (Ahmad et al. 2012). Managers in companies strive to build a functioning process within their enterprises (Vaňová et al. 2009). This is why companies have to cooperate with their employees. Companies must motivate and stimulate employees to make them feel satisfied with the organization and to prevent them from leaving. Halepota (2005) defines motivation as "a person's active participation and commitment to achieve the prescribed results." Without motivation, employees cannot offer their best performance, resulting in the company's performance being less efficient (Muslim et al. 2016). Motivated employees help businesses to succeed, as they are more productive (Almacik et al. 2012). Hence, motivated employees can contribute to making an organization more valuable and profitable (McKenzie-Mohr and Schultz 2014).To have a comprehensive understanding of employee motivation, one must examine its history, as well as further development, because employee motivation and engagement has long been a major concern for research (Sanyal and Biswas 2014). When Frederick Herzberg researched the sources of employee motivation during the 1950s and 1960s, he discovered a dichotomy: the things that make people satisfied and motivated on the job are different, in kind, from the things that make them dissatisfied. The renowned two-factor theory of established hygiene factors and motivators influenced better employee Fakhrutdinova et al. (2013), there are several means of employee motivation, such as bonuses, career growth, or obtaining the right to purchase shares of the company at a discounted price. During the economic crisis, motivation platforms are focused not only on financial incentives but very often on non-financial incentives, such as rebuilding teams, providing education and training within the company, offering qualifying training courses, language courses, managerial and IT courses, seminars, or using different outsourcing market tools (Wu et al. 2008;Kampf and Ližbetinová 2015). Kamasheva...

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Is High Employee Turnover Really Harmful? An Empirical Test Using Company Records

Cited by 158 publications

References 13 publications

The effect of autonomy, training opportunities, age and salaries on job satisfaction in the South East Asian retail petroleum industry

The effect of autonomy, training opportunities, age and salaries on job satisfaction in the South East Asian retail petroleum industry

Collective Turnover at the Group, Unit, and Organizational Levels: Evidence, Issues, and Implications

Motivation Factors Influencing Senior Managers in the Forestry and Wood-Processing Sector in Slovakia

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