The Impact of the Financial and Economic Crisis on Turnover Intention in the U.S. Federal Government

Abstract

Using data from the U.S. Federal Employee Viewpoint Survey, this article seeks to provide an insight in the effect of the financial and economic crisis on turnover intention within the U.S. federal government. By constructing panel data and applying a first difference estimator the effect of the crisis on turnover intention is examined, while dealing with a possible issue of endogeneity. Not only does this approach allow us to examine the effect of the crisis, but it also enables us to analyze whether the specific effect of independent variables identified by turnover literature has changed due to the crisis. Results highlight that the crisis has a negative impact on turnover intention, while the effects of pay, training, and gender on turnover intention appear to have changed.

Linking turnover to organizational performance: the role of process conformance

“…A possible explanation for this non-finding can be found in our specific public sector setting. Within our organization, and this holds for Belgian public sector organizations in general (Wynen and Op de Beeck, 2014), turnover rates are modest and relatively stable. The disruptive effects of turnover are consequently likely to be smaller within our setting than those in the private sector.…”

Many Hands Lighter Work? Deciphering the Relationship between Adverse Working Conditions and Organization Citizenship Behaviours in Small and Medium‐sized Enterprises during a Severe Economic Crisis

“…Workload increases primarily because the number of employees is reduced while work stays the same and must be reallocated, usually in a disproportionate manner (Mellahi and Wilkinson, ). Expectations increase significantly (Amon and Dorfleitner, ) and austerity measures adopted imply that employees are expected to do more with less (Wynen and Op de Beeck, ). As a result, employees face shorter, unrealistic, deadlines and are often ‘forced’ or coerced into working even longer hours, usually without additional payment (Kroon, Voorde and Timmers, ; Shah et al ., ).…”

“…In particular in the SME sector, austerity measures mean fewer jobs, redundancies, downsizing and business closures (OECD, ). Job losses affect people's perceptions of employer stability (Wynen and Op de Beeck, ). Downsizing breaches the employee−employer expectations that employee contributions are reciprocated with a stable and positive work environment that results in employment security (Van Dierendonck and Jacobs, ).…”

Transitory effects of personality on employee turnover

“…A more likely cause of the insignificant effect in this study might therefore be due to the study's covered time horizon as it primarily covers the period including and immediately after the recent financial crisis. Facing financial and labor market uncertainty, a person would therefore be reluctant to undergo employer changes in order to satisfy an intrinsic desire for novelty and would prefer employment and stable income (Wynen, & Op de Beeck, 2014). This would also explain the non-significant differences in size effects of openness to experience on employee turnover between this and Zimmerman's study.…”