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Article
Publication date: 26 October 2012

Patrick L. O'Halloran

The purpose of this paper is to explore how various performance related pay (PRP) schemes influence employee turnover. It also tests whether profit sharing has a…

Abstract

Purpose

The purpose of this paper is to explore how various performance related pay (PRP) schemes influence employee turnover. It also tests whether profit sharing has a differential impact on turnover in comparison to other forms of PRP.

Design/methodology/approach

Utilizing a nationally representative longitudinal dataset of individuals, analysis begins with a parsimonious specification of the determinants of turnover and then progressively adds various sets of controls known to influence turnover decisions to observe how their inclusion influences PRP coefficients. Estimations employ both standard probits and panel data models.

Findings

Empirical evidence reveals a negative relationship between an aggregate measure of PRP and turnover. Disaggregating performance pay measures by type reveals a robust negative relationship between profit sharing and turnover. Although one would expect the influence of other PRP schemes to mimic that of profit sharing, evidence suggests otherwise.

Research limitations/implications

Data lack information on how much earnings are based on PRP. Consequently, estimates may be biased when combining those who receive little earnings from PRP with those who receive substantial amounts of PRP into a single PRP measure.

Practical implications

Although PRP schemes are often introduced to improve incentives and productivity, profit sharing based on firm profitability may allow labor costs to vary with firm profits hence enhancing retention and reducing the incidence of unemployment during recession.

Originality/value

This paper adds to the literature and fulfils an identified need to study how other types of PRP besides profit sharing influence turnover.

Details

Journal of Economic Studies, vol. 39 no. 6
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 6 December 2019

Guoliang Li, Yanran Fang, Yifan Song, Jingqiu Chen and Mo Wang

Given migrant workers’ critical role in the Chinese economy, the increasing number of migrant workers who leave their organizations and return to their hometown has caused…

Abstract

Purpose

Given migrant workers’ critical role in the Chinese economy, the increasing number of migrant workers who leave their organizations and return to their hometown has caused severe socioeconomic issues in China. The purpose of this paper is to contribute to migrant worker literature by revealing the micro-mechanism underlying migrant workers’ return-to-hometown intention and turnover.

Design/methodology/approach

Data were collected from a convenience sample from seven Chinese companies that employed migrant workers (n=147). The authors used path analysis to test the hypotheses.

Findings

Migrant workers’ family encouragement of returning to hometown was positively related to their return-to-hometown intention, which subsequently predicted their turnover decision in six months. Further, migrant workers’ perceived career sacrifice associated with returning to hometown weakened the effect of family encouragement to return.

Practical implications

For organizations that need to retain migrant workers, the findings indicate that it is particularly important to take migrant workers’ family needs and their career-related concerns into account. For migrant workers, the study highlights the importance of assessing gains and losses in the process of making turnover-related decisions.

Originality/value

This study contributes to migrant worker literature by investigating psychological processes underlying migrant workers return-to-hometown intention and the subsequent turnover from a micro perspective.

Details

Career Development International, vol. 25 no. 2
Type: Research Article
ISSN: 1362-0436

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Article
Publication date: 5 September 2016

Jinqi Jiang, Guangsheng Zhang, Diming Qi and Mi Zhou

Whether training contributes to stabilizing employment among rural migrant workers in cities remains unclear. Based on this gap in the research, the purpose of this paper…

Abstract

Purpose

Whether training contributes to stabilizing employment among rural migrant workers in cities remains unclear. Based on this gap in the research, the purpose of this paper is to examine how on-the-job training affects rural migrant workers’ job mobility in China.

Design/methodology/approach

By using randomly sampled survey data on migrant workers in Liaoning province in 2014, the authors applied a logistic model and survival analysis to explore the effect of on-the-job training on migrant workers’ job turnover and understand workers’ job change behaviour after receiving on-the-job training.

Findings

The results showed that job training provided by employers can significantly reduce migrant workersturnover by increasing specific human capital. By contrast, training provided by the government or migrant workers themselves focuses on increasing general human capital and thus fails to reduce job turnover. Moreover, further discussion revealed that, in the trained group, those people with a short tenure and low wage in the first job, people without any skills before migration, male migrant workers, and people that work in medium-sized and large cities have a higher probability of changing jobs. These findings suggest that to tackle the high rate of job mobility among rural migrant workers, firms should entice this labour to train by adjusting their internal training mechanisms, and local governments should subsidize firms that provide on-the-job training for rural migrant workers to help share the costs and risks of training. Moreover, for sake of reducing job changing among those trained workers, firms even should take actions to protect their labour rights of migrant workers and to ensure that they receive equal treatment to their urban counterparts.

Originality/value

This paper makes three contributions to the field of job mobility in China. First, it explores the mechanism between on-the-job training and rural migrant workers’ job mobility. Second, it empirically analyses the effect of on-the-job training on migrant workers’ job mobility as well as the different effects of general and specific training. Lastly, its results have important policy implications for the employment stability of rural migrant workers.

Details

China Agricultural Economic Review, vol. 8 no. 3
Type: Research Article
ISSN: 1756-137X

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Book part
Publication date: 13 September 1999

Erling Barth and Harald Dalc-OIsen

Abstract

Details

The Creation and Analysis of Employer-Employee Matched Data
Type: Book
ISBN: 978-0-44450-256-8

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Article
Publication date: 3 December 2018

Rhokeun Park

The purpose of this paper is to investigate the mediating role of organizational identification in the relationship between emotional exhaustion and turnover intention. It…

Abstract

Purpose

The purpose of this paper is to investigate the mediating role of organizational identification in the relationship between emotional exhaustion and turnover intention. It also examines the moderating roles of worker cooperatives in the relationships of emotional exhaustion with organizational identification and turnover intention.

Design/methodology/approach

Surveys of worker cooperatives and capitalist firms in the Seoul metropolitan area were conducted in 2016. The hypotheses of this study were tested through multilevel moderated mediation analyses.

Findings

This study revealed that organizational identification partially mediated the relationship between emotional exhaustion and turnover intention. The findings of the study provided evidence that worker cooperatives alleviated the adverse relationships of emotional exhaustion with organizational identification and turnover intention.

Research limitations/implications

Since it was conducted with a cross-sectional data set, this study is not free from the issue of causality. However, the findings provide insights into how emotional exhaustion may be associated with organizational identification and turnover intention, and how worker cooperatives may alter these relationships.

Practical implications

Capitalist firms should provide their employees with more autonomy and more opportunities to participate in organizational decision-making, as in worker cooperatives, to induce their employees to hold more positive attitudes.

Originality/value

There is no extant research on the mechanism through which emotional exhaustion is associated with turnover intention via organizational identification, and on the moderating roles of worker cooperatives in this mechanism.

Details

Personnel Review, vol. 48 no. 2
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 1 May 2003

Pekka Ilmakunnas and Mika Maliranta

Job and worker flows in the Finnish business sector are studied during a deep recession in the early 1990s. The data set covers effectively the whole work force. The gross…

Abstract

Job and worker flows in the Finnish business sector are studied during a deep recession in the early 1990s. The data set covers effectively the whole work force. The gross job and worker flow rates are fairly high. The evidence suggests that the adjustment of labor input has happened through a reduced hiring rate rather than through an increased separation rate. However, during the recession the group of declining plants included more and larger plants than before, which led to reduced employment. Excess worker turnover (churning) and excess job reallocation have been low during the recession. The evidence of the countercyclicality of job reallocation is mixed. The flows are calculated both for the whole business sector, and for seven main industries. Services have clearly higher flow rates than manufacturing, but the cyclical changes in the flows are fairly similar in all industries. To test the sensitivity of the results to data sources, job flows are calculated from three different statistics.

Details

International Journal of Manpower, vol. 24 no. 3
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 6 November 2020

Felicito Angeles Jabutay and Parisa Rungruang

This paper aims to investigate the impact of task interdependence and leader–member exchange, as social exchange variables, on affective commitment and turnover intent of…

Abstract

Purpose

This paper aims to investigate the impact of task interdependence and leader–member exchange, as social exchange variables, on affective commitment and turnover intent of new workers in an industry with high attrition rates. In addition, the paper examines the mediating effects of affective commitment.

Design/methodology/approach

The present study drew insights from the literature to formulate hypotheses that link the two social exchange variables on affective commitment and turnover intent. Through the utilization of the data collected from 441 call center agents working for eight call centers in the Philippines, the hypotheses were tested and analyzed using structural equation modeling.

Findings

The results reveal that task interdependence and leader–member exchange are positive antecedents of affective commitment and negative predictors of turnover intent. Further analysis reveals that affective commitment fully mediates the effects of the two social exchange variables on turnover intent.

Practical implications

The results imply that call centers can help improve new workers' affective commitment and reduce their turnover intent through job designs that can facilitate high task interdependence. Furthermore, training team leaders or supervisors to develop leadership styles that are more focused on people and relationships may also increase the agents' commitment and reduce their quit intention.

Originality/value

This paper is the first to demonstrate that social exchange variables can also impact the affective commitment and turnover intent of new workers in an industry known to have heavy supervisorial monitoring, high demands in terms of work quotas and high turnover rates.

Details

Asia-Pacific Journal of Business Administration, vol. 13 no. 1
Type: Research Article
ISSN: 1757-4323

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Article
Publication date: 6 March 2009

Rebecca M. Guidice, Joyce Thompson Heames and Sheng Wang

The purpose of this paper is to conceptually demonstrate that the relationship between turnover and innovation is not direct as some research suggests, but rather…

Abstract

Purpose

The purpose of this paper is to conceptually demonstrate that the relationship between turnover and innovation is not direct as some research suggests, but rather indirect, with organizational learning as the prerequisite social mechanism that ties the two phenomena together.

Design/methodology/approach

This paper integrates research across a number of related areas to develop a model of the immediate and indirect organizational consequences of different rates of knowledge worker turnover.

Findings

The paper finds that certain conditions and mechanisms must first be in place to pave the way to innovation. Grounded in social capital theory, this paper describes how turnover rates and organizational learning can be curvilinearly related with respect to ambidextrous learning; how betweenness centrality and learning culture can moderate this relationship; and why organizational learning should mediate the turnover‐innovation relationship.

Research limitations/implications

Faulty decisions based on simplified beliefs place organizational performance in a precarious position. Studies must consider how changes in personnel affect activities where interpersonal relationships are critical. Turnover that beneficially breathes diversity, critical evaluation, and creativity should result in benefits that more than offset its costs.

Originality/value

By taking an in‐depth look at previously disconnected research, the paper offers a unified model that more accurately depicts the processes and outcomes that intercede and explain how knowledge worker turnover rates come to influence innovation.

Details

The Learning Organization, vol. 16 no. 2
Type: Research Article
ISSN: 0969-6474

Keywords

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Article
Publication date: 1 July 2006

Ing‐Chung Huang, Hao‐Chieh Lin and Chih‐Hsun Chuang

The purpose of this paper is to examine the effect of individual‐based, firm‐based, and market factors on job retention, basing its hypotheses on human capital theory and…

Abstract

Purpose

The purpose of this paper is to examine the effect of individual‐based, firm‐based, and market factors on job retention, basing its hypotheses on human capital theory and signaling models.

Design/methodology/approach

By collecting secondary data on 180 employees who left their jobs at one firm and interviewing human resource managers and those who left for other jobs, factors determining the decision to stay with a firm for a certain period were investigated. Hierarchical regression analyses were performed to test hypothesized relationships.

Findings

Marriage, gender, honored employee status, relative pay (both inter‐firm and intra‐firm wages), speed of promotion, and economic cycles had a significant impact on how long the employees retained their jobs, but education level and individual performance did not. Firm‐specific human capital, wages, and signaling effects were proved to affect job retention. Firm‐based factors had a significantly more pronounced impact on the ultimate decision than individual‐based factors.

Research limitations/implications

This study examines worker mobility from the perspective of actual length of job retention, complementing existing streams of research based on intention to leave. Because a few unexamined psychological and sociological factors may confound the findings and because only examine one firm is examined, care should be used when generalizing the findings to other firms.

Practical implications

The study provides evidence useful in the creation of human resource management practices aimed at retaining competent employees.

Originality/value

This study's research questions and methods are new to the line of turnover studies, making it a starting point for further lines of exploration.

Details

International Journal of Manpower, vol. 27 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

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Article
Publication date: 15 November 2018

Zulqurnain Ali and Aqsa Mehreen

Considerable research has linked leaders’ development practices to employee performance, but little research has concentrated on how succession planning minimizes the…

Abstract

Purpose

Considerable research has linked leaders’ development practices to employee performance, but little research has concentrated on how succession planning minimizes the turnover intentions. The purpose of this paper is to investigate the impact of succession planning on turnover intentions among banking professionals. Moreover, the authors examine whether succession planning enhances the employee job security and creates career attitude that mitigates the risk of employee turnover intentions.

Design/methodology/approach

Using the survey method, the authors recruited permanent employees of retail banking and the proposed model and structural relationships were tested via structural equation modeling.

Findings

The findings depict that succession planning provides job security and creates positive career attitude which in turn mitigate the turnover intentions among banks employees.

Practical implications

The present study helps the bank management to formulate a strategic and proactive succession system based on job security and build a strong career attitude to discourage the turnover intentions among banks employees. Moreover, the outcome supports the management of banks in case of the sudden resignation of a bank employee; they will be in a position to appoint a resourceful employee immediately on the vacant post to provide excellent customer services.

Originality/value

The current study successfully developed an empirical relationship between succession planning and turnover intentions which was skipped in the literature on human resource development. Furthermore, this study offers an important mediation mechanism for job security and career attitude for mitigating the turnover intentions among banks employees through succession planning.

Details

Journal of Advances in Management Research, vol. 16 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

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