Turnover and organizational performance: A comparative analysis of the effects of voluntary, involuntary, and reduction-in-force turnover.

McElroy, James C.; Morrow, Paula C.; Rude, Scott N.

doi:10.1037/0021-9010.86.6.1294

Cited by 193 publications

(188 citation statements)

References 29 publications

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“…These turnover-profit effects were conditional on a process conformance moderator, were curvilinear, and were sensitive to the turnover aggregation window. McElroy et al (2001) found negative correlations between three turnover measures (voluntary, involuntary, and reduction in force) and same-year profitability, yet only involuntary turnover remained statistically significant when controlling for size, location, and service mix. Time-lagged relationships were somewhat weaker, as only reduction in force turnover remained negative and statistically significant in both the zero-order and partial correlation analyses.…”

Section: Firm Performancementioning

confidence: 96%

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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Section: Firm Performancementioning

confidence: 96%

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

Hausknecht

Trevor

2010

Journal of Management

321

398

View full text Add to dashboard Cite

show abstract

“…Turnover in itself is not necessarily detrimental to an organization as the exit of underperforming employees can be beneficial (Abelson & Baysinger, 1984;McElroy, Morrow, & Rude, 2001). In general, however, turnover has been shown to have a negative effect on organizational performance (Hancock, Allen, Bosco, McDaniel, & Pierce, 2013;Park & Shaw, 2013).…”

Section: Voluntary Turnovermentioning

confidence: 99%

The impact of energizing interactions on voluntary and involuntary turnover

Parker¹,

Gerbasi²

2016

M@n@gement

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AcknowledgementsWe are very grateful for the insightful comments of Nathalie Delobbe and the three reviewers. We also thank Gary Ballinger, Rob Cross and Greg Molecke and the participants of the 31st Sunbelt International Network for Social Network Analysis conference. 2 AbstractIn this paper we build from the theory of energetic activation to highlight the role energizing interactions play in relation to performance and turnover. We theorize that the association between energizing interactions within organizations and turnover is mediated by individual performance. We test our hypotheses using longitudinal network data collected annually within the IT department of a global engineering consulting firm over a four-year period. Our study shows that when an individual perceives their interactions with others inside the organization as increasing their level of energetic activation, they have a reduced likelihood of voluntary turnover, but that this relationship is mediated by individual performance. Perceiving interactions as increasing energetic activation results in higher performance, which in turn actually increases voluntary turnover. In contrast, when others perceive interactions with the focal actor as increasing their level of energetic activation it reduces the focal actor's risk of involuntary turnover. This relationship is also mediated by performance. When others within the organization perceive interactions with the focal actor as increasing their level of energetic activation, it results in the focal actor having higher performance, which in turn reduces the focal actor's involuntary turnover. In conclusion, we note that our findings are specific to knowledge workers with IT skills and may not be generalizable to all employees. We also suggest implications for managers and potential areas for future research.

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“…Firms typically respond to adverse business conditions by downsizing, thereby losing valuable human capital with potentially adverse effects on firm performance (Cascio, 2002;McElroy et al, 2001). Real options theory recommends that firms should develop capabilities, i.e.…”

Section: Options and Human Resource Managementmentioning

confidence: 99%

Managing human assets in an uncertain world: applying real options theory to HRM

Bhattacharya¹,

Wright²

2005

The International Journal of Human Resource Management

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While many authors have proposed a firm's human resources as an asset that can provide value and competitive advantage, the SHRM field has tended to ignore the fact that assets have associated uncertainties and risks. The real options view provides a theoretical framework for how firms manage uncertainties associated with investments in real assets. We apply this logic to analyze the uncertainties associated with human assets and discuss how firms manage these uncertainties through HR 'options' which are capabilities generated by some HR practices and their combinations. We discuss these practices and develop an options model for managing different types of uncertainties.

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Turnover and organizational performance: A comparative analysis of the effects of voluntary, involuntary, and reduction-in-force turnover.

Cited by 193 publications

References 29 publications

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

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

The impact of energizing interactions on voluntary and involuntary turnover

Managing human assets in an uncertain world: applying real options theory to HRM

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