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Book part
Publication date: 29 March 2016

James W. Hesford, Mary A. Malina and Mina Pizzini

We investigate outcomes associated with the turnover of unskilled workers, isolating its effects on revenue, cost, and profit. Little attention from researchers has been given to…

Abstract

Purpose

We investigate outcomes associated with the turnover of unskilled workers, isolating its effects on revenue, cost, and profit. Little attention from researchers has been given to unskilled workers, a significant portion of the workforce.

Methodology/approach

This study investigates the relation between turnover among unskilled workers and financial performance using data from 527 hotels owned by the same lodging chain. The workers in our sample are full-time housekeepers and front desk attendants.

Findings

We find that the relation between turnover and performance differs by turnover type (voluntary vs. involuntary) and category of unskilled worker, reiterating the need to differentiate between turnover type and the importance of context in studying turnover. We challenge the assumption that voluntary turnover is categorically harmful and our results for front desk attendants support the view that organizations choose turnover levels that maximize performance. We also provide new evidence on the effects of involuntary turnover. Contrary to the established notion that dismissing less able employees should improve performance, we find that involuntary turnover has negative consequences.

Research limitations/implications

Our results demonstrate the importance of distinguishing voluntary turnover from involuntary turnover and the need to include both in models predicting turnover’s performance effects.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78441-652-2

Keywords

Article
Publication date: 1 March 2001

Paul D. Rouse

Traditionally, models of voluntary turnover assume that a rational actor follows a series of linear steps leading towards turnover. In regards to the construct of voluntary

Abstract

Traditionally, models of voluntary turnover assume that a rational actor follows a series of linear steps leading towards turnover. In regards to the construct of voluntary turnover, information technology professionals represent a unique phenomenon that may not adhere to traditional models. A new instinctual model of voluntary turnover provides an alternative method of understanding the processes involved when information technology professionals contemplate turnover.

Details

The International Journal of Organizational Analysis, vol. 9 no. 3
Type: Research Article
ISSN: 1055-3185

Article
Publication date: 31 October 2008

Emad Mohammad and Siva Nathan

The purpose of this paper is to examine the factors leading to turnover among sell‐side financial analysts and the consequences of turnover.

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Abstract

Purpose

The purpose of this paper is to examine the factors leading to turnover among sell‐side financial analysts and the consequences of turnover.

Design/methodology/approach

The paper identifies two types of turnover, voluntary and involuntary, and defines voluntary (involuntary) as when analysts leave their employment at one brokerage firm and find (do not find) employment at another brokerage firm. Logistic models are estimated relating the probability of turnover to factors that explain turnover for both voluntary and involuntary turnover.

Findings

The paper finds that job performance is positively (negatively) related to voluntary (involuntary) turnover. This finding is consistent with Jackofsky's theory predicting U‐shaped relationship between performance and turnover. For voluntary turnover, analysts' performance and job conditions at the new brokerage firm are examined and related to the factors leading to turnover. It was found that turnover analysts move to smaller brokerage firms and become more accurate. They have lighter workload and enjoy more prestige at the new brokerage firm as they follow larger firms and fewer firms and industries.

Originality/value

This is the first study to apply Jackofsky's theory to the financial analysts' profession. Also, it is the first study to document the consequences to voluntary analyst turnover.

Details

Review of Accounting and Finance, vol. 7 no. 4
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 5 March 2021

Michelle Brown, Christina Cregan, Carol T. Kulik and Isabel Metz

Voluntary collective turnover can be costly for workplaces. The authors investigate the effectiveness of high-performance work system (HPWS) intensity as a tool to manage voluntary

Abstract

Purpose

Voluntary collective turnover can be costly for workplaces. The authors investigate the effectiveness of high-performance work system (HPWS) intensity as a tool to manage voluntary collective turnover. Further, the authors investigate a cynical workplace climate (CWC) as a boundary condition on the HPWS intensity–voluntary collective turnover relationship.

Design/methodology/approach

The unit of analysis is the workplace, with human resource (HR) managers providing data on HPWS practices in Time 1 (T1) and voluntary collective turnover two years later. Aggregated employee data were used to assess the cynical workplace climate. Hierarchical regression analysis was used to test the hypotheses.

Findings

This study’s results demonstrate a negative relationship between HPWS intensity and voluntary collective turnover when there is a low cynical workplace climate. The authors find that in a high cynical workplace climate, HPWS intensity is ineffective at managing voluntary collective turnover.

Research limitations/implications

This study’s results show that HPWS intensity needs to be well received by the workforce to be effective in reducing voluntary collective turnover.

Practical implications

To increase the chances of HPWS intensity reducing voluntary collective turnover, workplaces need to assess the level of employee cynicism in their workplace climates. When the climate is assessed as low in cynicism, the workplace can then consider implementing an HPWS.

Originality/value

The authors explain why the HPWS intensity–voluntary collective turnover relationship varies across workplaces. As HR practices are subject to interpretation, workplaces need to look beyond the practices in their HPWS and focus on employee receptivity to HR practices.

Details

Personnel Review, vol. 51 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 23 March 2021

Stéphane Renaud, Sylvie St-Onge and Denis Morin

This study examines the link between vacations, parental leave and voluntary turnover among Canadian organizations in the Information and Communications Technology (ICT) sector.

Abstract

Purpose

This study examines the link between vacations, parental leave and voluntary turnover among Canadian organizations in the Information and Communications Technology (ICT) sector.

Design/methodology/approach

The empirical analysis is carried out using firm-level data sourced from a survey that was completed by HR managers of 125 ICT firms operating in the province of Quebec (Canada).The organizational voluntary turnover rate was used and was obtained by dividing the number of employees who voluntarily quit an organization within the last year by the total number of its employees. Based on ordinary least squared estimates, results were generated by regressing voluntary turnover rate on vacation and parental leave.

Findings

Vacation, operationalized as the average number of annual vacation days, is negatively and significantly associated with the voluntary turnover rate of the ICT organizations surveyed. Parental leave, operationalized as the percentage of salary reimbursed during parental leave, does not significantly reduce voluntary turnover in the ICT organizations surveyed.

Practical implications

In light of the results of this study, if organizations in the ICT sector, in Canada or abroad, desire to reduce voluntary turnover, compensating employees through the use of additional vacation days appears to be a viable approach.

Originality/value

This research constitutes an empirical test of the link between turnover and two compensation practices adopted by firms. To our knowledge, there is no prior scientific evidence on that subject in the Canadian ICT sector.

Details

International Journal of Manpower, vol. 42 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 20 December 2022

Wisanupong Potipiroon and Orisa Chumphong

This research aims to examine the impact of authoritarian leadership on firm-level voluntary turnover among small and medium-sized enterprises (SMEs) in Thailand and asks whether…

Abstract

Purpose

This research aims to examine the impact of authoritarian leadership on firm-level voluntary turnover among small and medium-sized enterprises (SMEs) in Thailand and asks whether benevolent leadership can mitigate the adverse impact of authoritarian leadership.

Design/methodology/approach

A total of 110 owner-managers of SMEs and 951 employees in Thailand were invited to participate in the study. Tobit regression was used for analyzing aggregated data (i.e. employees' assessment of owner-managers' leadership styles) and firm-level voluntary turnover data provided by SME owner-managers.

Findings

The results showed that authoritarian leadership was positively related to voluntary turnover, whereas benevolent leadership was negatively related to voluntary turnover. Furthermore, the relationship between authoritarian leadership and voluntary turnover was moderated by benevolent leadership, such that the highest levels of voluntary turnover rates were observed among firms with high-authoritarian and low-benevolent leaders. In contrast, firms with high-authoritarian and high-benevolent leaders were not necessarily associated with high turnover rates. These results were observed for both the voluntary turnover rates of full-time and part-time employees and the weighted voluntary turnover rate.

Practical implications

These findings suggest that owner-managers of SMEs should take a balanced leadership approach to managing their employees, acting as paternalistic leaders who tread a fine line between being “strict and cold” and being “strict and warm.” They can achieve this by showing care and genuine concern for employees when enacting authority.

Originality/value

While past research has shed important light on the additive and joint effects of authoritarian and benevolent leadership styles on individual-level outcomes, this study contributes to this body of work by being among the first to show that these effects are also isomorphic at the organizational level of analysis.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 3 August 2021

Ken Sudarti, Olivia Fachrunnisa and Alifah Ratnawati

This study aims to examine the role of ta’awun in reducing voluntary turnover intention. The authors defined ta’awun as the willingness to help colleagues without being asked and…

Abstract

Purpose

This study aims to examine the role of ta’awun in reducing voluntary turnover intention. The authors defined ta’awun as the willingness to help colleagues without being asked and expecting rewards as promised by Islam. Also, the antecedent variables of organizational identification and job embeddedness are used to predict ta’awun.

Design/methodology/approach

This study used 216 respondents from Islamic Universities in Indonesia. Structural equation model was used to analyze data and test the empirical model.

Findings

Job embeddedness and organizational identification can improve ta’awun behavior. Ta’awun behavior has also been proven to be able to reduce voluntary turnover intention as well as successfully mediating the relationship between job embeddedness and organizational identification with voluntary turnover intention.

Research limitations/implications

Ta’awun enriches organizational citizenship behavior (OCB) studies which are intervened with Islamic values. The questionnaire given to respondents are very susceptible for self-response bias so that this type of bias influences the conclusion. Thus, consistency of results can be retested in several different objects.

Practical implications

Organizations need to consider the factor of religiosity when recruiting employees. HRM practices need to be encouraged to create organizational identification through pride in the organization to reduce voluntary turnover intention through ta’awun behavior.

Originality/value

The Ta’awun concept is a refinement of the previously existing concept, which is OCB. Orientation in the world and the hereafter that underlies this ta’awun behavior is more effective in reducing the intention of voluntary displacement.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 6
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 August 2008

Wei Zhao and Xueguang Zhou

This study aims to investigate how various aspects of intraorganizational career advancement – current career attainments, recent pace of upward mobility, and future prospect of…

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Abstract

Purpose

This study aims to investigate how various aspects of intraorganizational career advancement – current career attainments, recent pace of upward mobility, and future prospect of career advancement – affect voluntary turnover, drawing empirical evidence from a multinational corporation (MNC) in Taiwan's cultural and labor market environment.

Design/methodology/approach

The empirical study was based on statistical analyses of personnel records of 303 employees in a multinational bank in Taiwan. A discrete‐time logistic model was used to analyse voluntary turnover events.

Findings

Results showed that salary increase and job status generally reduced voluntary turnover. A ceiling position on the job ladder induced turnover and also moderated the relationship between corporate title duration and turnover and that between age and turnover.

Research limitations/implications

Because the empirical evidence was based on data collected from one MNC in Taiwan's distinct research context, this may limit the generalizability of some findings in the study.

Originality/value

Whereas much of the literature on turnover has focused on psychological models, this study adopts an objective career perspective and highlights the significance of intraorganizational career advancement in affecting voluntary turnover. It also deepens one's understanding of career development and choices in a Chinese cultural environment.

Details

Career Development International, vol. 13 no. 5
Type: Research Article
ISSN: 1362-0436

Keywords

Article
Publication date: 18 November 2021

Xiaoguo Xiong, Weihong Chen and Xi Zhong

While the effect of vertical pay dispersion on the voluntary turnover rate of vice presidents (VPs) has received attention, the existing research conclusions are still divided…

Abstract

Purpose

While the effect of vertical pay dispersion on the voluntary turnover rate of vice presidents (VPs) has received attention, the existing research conclusions are still divided. Therefore, this study aims to explore the relationship between vertical pay dispersion and voluntary turnover rate of VPs in a Chinese context using data from listed firms.

Design/methodology/approach

Integrating tournament theory and social comparison theory, this study examines the non-linear effect of vertical pay dispersion on VPs’ voluntary turnover rates using empirical data from Chinese A-share listed firms from 2007 to 2016.

Findings

The results reveal a U-shaped relationship between vertical pay dispersion and the voluntary turnover rate of VPs. After further incorporating the moderating effect of the board governance structure, the effect is found to be enhanced in firms with more efficient board governance (i.e. smaller board size, higher board turnover and higher proportion of outside directors). Further analysis indicates that the aforementioned conclusions mainly exist in non-state-owned enterprises rather than state-owned enterprises.

Originality/value

The findings deepen the understanding of the costs and benefits associated with vertical pay dispersion, enrich the research findings on pay dispersion and contribute to the integration of previously inconsistent findings.

Details

Chinese Management Studies, vol. 16 no. 5
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 7 November 2019

Stéphane Renaud and Lucie Morin

The purpose of this paper is to examine the impact of three training indicators, namely offer, participation and cost, on three firm outcomes, namely voluntary turnover, firm…

Abstract

Purpose

The purpose of this paper is to examine the impact of three training indicators, namely offer, participation and cost, on three firm outcomes, namely voluntary turnover, firm performance and profit.

Design/methodology/approach

The empirical analysis is carried out using firm-level data sourced from a Canadian national data set. In total, data from 5,237 for-profits firms with ten employees or more were analyzed longitudinally over eight years. Results were generated by XTREG fixed effect longitudinal analyses between the three variables of training, voluntary turnover, firm performance and profit.

Findings

Training offer, operationalized as the number of different formal training programs offered annually by an employer, significantly decreases voluntary turnover while it significantly increases performance and profit. Training participation, operationalized as the percentage of employees receiving training per year, has a significant positive impact on voluntary turnover. Training cost, operationalized as the annual cost of training per employee, has no impact on the three firm outcomes.

Practical implications

Among the various human resource practices a firm can use to strengthen its human capital, training can have a significant impact of its own. Investing in a diversified training offer brings value to a firm by decreasing employee voluntary turnover while increasing firm performance and profit.

Originality/value

This research contributes to the strategic impact of organizational training, demonstrating the impact of training on key organizational outcomes over time. Further, this paper contributes to the empirical literature by making a distinction between voluntary and involuntary turnover. Last, even though this study does not entirely addresses the problem of possible reverse causality, using longitudinal objective data, this study addresses several limits of past research at the macro-level of analysis.

Details

International Journal of Manpower, vol. 41 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

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