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1 – 10 of over 12000James 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.
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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.
The purpose of this paper is to examine the factors leading to turnover among sell‐side financial analysts and the consequences of turnover.
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.
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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…
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.
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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.
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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.
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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.
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This study aims to investigate how various aspects of intraorganizational career advancement – current career attainments, recent pace of upward mobility, and future prospect of…
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.
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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.
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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.
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