Global Talent Retention: Understanding Employee Turnover Around the World

The flow of human capital into and out of organizations is a crucial aspect of organizational functioning, yet the bulk of the theory and research adopts a US-centric perspective. The purpose of this edited volume is for scholars embedded in contexts around the world to describe the relevance and implications (or lack thereof) of turnover theories in their particular context. We take a broad view of talent, focusing on the departure of human capital in general without necessarily restricting the analysis to those who disproportionately contribute to organizational success, and the authors focus on institutional contexts and culture because of their role in shaping employee norms and behaviors. We partnered with author teams embedded in countries and regions with a focus on capturing variance in contexts across the GLOBE clusters: Anglo (England), Confucian Asian (China; South Korea), Eastern European (Bulgaria), Germanic European (Germany), Latin American (Mexico), Latin European (Spain), Middle Eastern (Turkey), Nordic European (Denmark), Southern Asian (India), and Sub-Saharan African (South Africa). We provided each author team discretion to express their own voice, while also providing a common set of goals across chapters for consistency of contribution: a description of the institutional, legal, and cultural context as it relates to employee mobility, a review of context-specific research literature leading to a description of how the mechanisms and processes in prominent turnover theories may operate differently in a particular context, and implications for research and practice related to talent turnover and retention. Considering the contributions as a set, we identify important themes and overarching recommendations for scholars interested in studying employee retention and turnover around the globe.

In this chapter, the authors build on the voluntary turnover model posited by Allen, Bryant, and Vardaman (2010) with reference to turnover and retention within the United Kingdom. After providing important contextual material about the United Kingdom, the authors explore turnover drivers such as work precarity, as well as the effect of Brexit, which compounds the political and economic uncertainty engendered by the pandemic. Reflecting on the role of external shocks in precipitating withdrawal processes, the authors go on to examine the extent to which job embeddedness impacts on employee turnover, and how alternative opportunities in a UK context may shape the decisions people make to stay with or leave their organizations. Central to our argument is that human resource (HR) practices as perceived by employees play a critical role in shaping attitudes such that people wish to stay in the organization. Cultural values posited by Hofstede and others are likely to significantly impact the way in which employees respond to the HR practices they perceive. Hence, leaders and HR specialists in the United Kingdom need to deploy HR practices which speak to cultural values that stand out in that context, considering that the United Kingdom is characterized by relatively low levels of power distance, low uncertainty avoidance, high individualism and higher than average indulgence.

Taken together, the model provides an overview of key internal and external factors that influence employees’ attitudes at work, their withdrawal behaviors and the ensuing turnover at the organizational-level. The authors conclude by highlighting key research questions raised by the analysis of the model within a UK context, considering where empirical research will add to understanding about turnover and retention in the United Kingdom.

The overall goal of this chapter is twofold. First, the authors aim to identify indigenous phenomena that influence employee turnover and retention in the Chinese context. Second, the authors link these phenomena to the contextualization of job embeddedness theory. To achieve the goal, the authors begin by introducing three macro-level forces (i.e., political, economic, and cultural forces) in China that help scholars analyze contextual issues in turnover studies. The authors then provide findings in the literature research on employee retention studies published in Chinese academic journals. Next, the authors discuss six indigenous phenomena (i.e., hukou, community in China, migrant workers, state-owned companies, family benefit prioritization, and guanxi) under the three macro-level forces and offer exploratory propositions illustrating how these phenomena contribute to understanding employee retention in China. Finally, the authors offer suggestions on how contextualized turnover studies shall be conducted in China.

Why employees stay or leave their organization in Republic of Korea (South Korea) can be better understood by taking into account the idiosyncratic institutional and cultural contexts. In this chapter, we aim to provide a comprehensive review of employee turnover research in South Korea and discuss its implications for research. Specifically, we explain how employee turnover decisions may be affected by the characteristics of South Korean labor market (duality, polarization, and intergenerational issues) and cultural environments (collectivism, high power distance, and high-performance orientation). The review shows that organizational commitment, job satisfaction, and on-the-job embeddedness are three key mechanisms explaining employee turnover in South Korea. Building upon the review, we conclude the review by suggesting future research directions: (a) examining turnover behavior as a key outcome, (b) developing a theoretical framework for social identity and embeddedness, and (c) understanding intergenerational issues.

This chapter examines some of the demographic and socioeconomic factors, as well as cultural and institutional traditions, that help explain turnover and retention in Bulgaria. The case of Bulgaria illustrates that extant theories of turnover and retention may not be well suited to account for macroeconomic and large-scale social processes spurred by globalization. The focus here is on collective turnover at the organizational and particularly at upper levels of analysis (e.g., industry, region), and the authors emphasize four factors that they believe jointly contribute to the high levels of turnover in the country, namely (1) globalization processes affecting the country’s demography (i.e., mass international migration), (2) the economy (i.e., global labor arbitrage), (3) institutions (i.e., patchwork capitalism), and (4) culture (i.e., shifting generational values). To further scholarly progress, management scholars need to be more attentive to turnover – and its determinants – for larger collectives, that is, at levels above the unit and organizational. The authors provide concrete suggestions on how the case of Bulgaria opens up some avenues for future research on turnover and retention.

The authors review the German voluntary turnover literature and examine how it reflects and extends the overall knowledge of employee turnover. First, the authors describe legal, institutional, and cultural influences specific to Germany that may affect voluntary turnover and its relationships with antecedents and outcomes. The authors then explain how research paradigms, which in German turnover research are primarily embedded in sociology and labor economics and to a lesser degree psychology and management, affect the lens by which voluntary turnover is examined. For instance, the variety of research perspectives leads to a variety of research questions, theories, data, and methodological approaches. Using these diverse perspectives, the authors explain how measurement and data quality concerns may hamper the understanding of turnover in cross-country/cross-cultural comparisons. This review further reveals many similarities with US-based turnover research, regarding the theories, methods, and results. The authors also find that turnover levels are, on average, considerably lower in Germany than in Anglo-Saxon labor markets. The authors suggest that the industry structure in Germany, coined by its strong and traditionally organized “Mittelstand” companies, may partly drive these findings. The authors close by identifying several research opportunities, available through advances in technology to improve the matching process, nonstandard work arrangements (such as in the gig economy), and a broader perspective on institutional peculiarities.

In this chapter, the authors examine the turnover of employees in Latin America, with a particular focus on Mexico. Employee turnover is important in Latin America and in Mexico, as it is in many other places, because the cost of labor typically accounts for 70% of a firm’s operating cost. When employees leave, it requires that the employer replaces the workers through human resource management processes that include recruiting, selection, orientation, and training. These costs are a significant expense to firms that they could avoid if turnover was lower. The authors identify cultural, economic, legal, and other factors that could influence employee turnover. The authors also summarize many managerial practices that can help employers to effectively manage employee turnover. Finally, the authors provide insights for future research on employee turnover in this important region of the world.

The authors provide a comprehensive review of existing turnover studies in Spain. The literature review reveals that research on voluntary turnover is scarce, while other types of mobility, such as involuntary separations, downsizing, and planned turnover through contract date expiration, have received substantial attention. The authors identify the main institutional characteristics of Spain and explain why these may contribute to the low incidence of voluntary turnover. Specifically, the authors note that employment protection legislation, high unemployment, high unemployment insurance, centralized collective bargaining, the composition of the sector, high power distance, and in-group collectivism are important drivers of the patterns observed in existing turnover studies. The authors also explore how some of the mechanisms and processes exposed by key turnover theories may be applicable to the Spanish context. This chapter highlights the importance of paying attention to the role of the institutional and cultural context to understand different mobility patterns in the labor market. The authors also suggest several avenues for future research including the study of different turnover types, employer and employee outcomes, cultural variations, and employment practices.

In this chapter, the authors will examine turnover in Turkey. In the first section, the authors will briefly describe the legal, institutional, and cultural context with a particular emphasis on their implications for employment conditions and turnover in Turkey. In the second section, the authors will review the academic literature on turnover that originated from Turkey. The authors divide the reviewed studies into two groups: generalizability studies, which are primarily replications of the mainstream literature with no focus on any specific characteristics of Turkey, and contextual studies, which emphasized the role of the economic, legal, or cultural background in formulating or interpreting their research. In the final section, the authors will discuss the findings of the review vis-á-vis the mainstream literature as well as practical implications and conclude with potential future research directions in the Turkish context.

Scholars often suggest that institutionalized employee voice reduces turnover as an alternative to exit when employees are dissatisfied. Paradoxically, Denmark presents a case of high union density and thus high institutionalized employee voice, yet high turnover rates. To explore the Danish turnover paradox, this chapter looks at the macro-societal contextual factors impacting turnover rates in the Danish labor market. Institutional characteristics such as the flexicurity model (i.e., a welfare state model with proactive labor market policy; a portmanteau of flexibility and security), legal frameworks (i.e., relatively lax labor market regulations), and cultural factors (i.e., a culture of equality and collective collaborative structures) are all relevant to understand the high turnover rates in Denmark. The authors first overview the general trends and figures on turnover in Denmark and then examine the Danish institutional, legal, and cultural factors as they relate to the high turnover rates in the Danish labor market. Finally, the authors summarize and discuss the findings and consider their implications for research and practice related to employee turnover in the Nordics and beyond.

The “war for talent” is not limited to developed economies but has become a common feature in emerging economies such as India. From the sociocultural perspective, India represents one of the oldest cultural heritages with distinct cultural values. The cultural difference may contribute to explain organizational practices toward talent retention. In the present chapter, the authors focus on the institutional, legal, and cultural context and highlight their uniqueness with respect to the Indian context. Within the institutional context, the authors found that prior to liberalization (which happened in 1990s), the Indian business scene was dominated by public firms or a small enclave of private firms. For both types of organization, turnover hardly mattered, and turnover was indeed negligible. Employees saw firms as “employers for life”: in such a context, voluntary turnover was extremely rare. Further, in the early legal context, it was hard for any private firm to “fire” an employee. Therefore, involuntary turnover was close to nil as well. Things began to change post-liberalization when the Indian scene was dominated by an influx of private players. The Indian mind too accepted turnover to be a part of the corporate life. In the present chapter, the authors provide a snapshot of what, why, and how of employee turnover in the Indian context. The authors specifically focus on what motivates employees to remain with the organization or why do they leave the organization. The authors close the chapter with insights relevant to both academicians and practitioners.

The South African government actively intervenes in the labor market in the pursuit of redress of social injustice. These interventions are complicated by economics and have a direct effect on intentions to turnover. In addition, South Africa has a dual labor market, with a high unemployment rate among lesser skilled workers, and a skills shortage at the top of the labor market.

There are four clear eras in the labor market of post-Apartheid South Africa. The first era was after democratic elections in 1994, when the government focused on nation-building with the introduction of indigenization programs. The second era was characterized by economic prosperity and an intensification of indigenization programs. The third era was characterized by rampant state corruption and increased regulatory uncertainty. During this period, the economy stagnated and unemployment increased. Firms restructured and lower-level workers were retrenched and higher-level skilled workers left the country. In 2018, a new president undertook to grow the South African economy and attract foreign direct investment. Despite these efforts, there was a spike in South Africans emigrating, increasing the turnover of highly skilled South Africans of all races.

Economics and politics create both push and pull factors and many unintended consequences, and the dual labor market reacts differently to labor markets than in developed economies. The lower-skilled employees lose their jobs as the economy contracts, while highly skilled jobs remain difficult to fill. However, skilled professionals nonetheless feel increasingly uncertain about their future employability.