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Furloughed Employees’ Voluntary Turnover: The Role of Procedural Justice, Job Insecurity, and Job Embeddedness

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  • Felix Ballesteros-Leiva

    (Department of Management, Université Laval, Québec, QC G1V 0A6, Canada)

  • Sylvie St-Onge

    (Department of Management, HEC Montréal, Montreal, QC H3T 2A7, Canada)

  • Marie-Ève Dufour

    (Department of Management, Université Laval, Québec, QC G1V 0A6, Canada)

Abstract

During the COVID-19 lockdown period, several employers used furloughs, that is, temporary layoffs or unpaid leave, to sustain their businesses and retain their employees. While furloughs allow employers to reduce payroll costs, they are challenging for employees and increase voluntary turnover. This study uses a two-wave model (Time 1: n = 639/Time 2: n = 379) and confirms that furloughed employees’ perceived justice in furlough management and job insecurity (measured at Time 1) explain their decision to quit their employer (measured at Time 2). In addition, our results confirm that furloughed employees’ job embeddedness (measured at Time 1) has a positive mediator effect on the relationship between their perceived procedural justice in furlough management (measured at Time 1) and their turnover decision (Time 2). We discuss the contribution of this study to the fields of knowledge and practice related to turnover and furlough management to reduce their financial, human, and social costs.

Suggested Citation

  • Felix Ballesteros-Leiva & Sylvie St-Onge & Marie-Ève Dufour, 2023. "Furloughed Employees’ Voluntary Turnover: The Role of Procedural Justice, Job Insecurity, and Job Embeddedness," IJERPH, MDPI, vol. 20(9), pages 1-14, April.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:9:p:5664-:d:1134206
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    References listed on IDEAS

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    1. Juan Laborda & Pilar Rivera-Torres & Vicente Salas-Fumas & Cristina Suárez, 2021. "Is there life beyond the Spanish government’s aid to furloughed employees by COVID-19?," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-21, June.
    2. Carl M. Campbell III & Kunal S. Kamlani, 1997. "The Reasons for Wage Rigidity: Evidence from a Survey of Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 759-789.
    3. Peter Hamilton & Oonagh Harness & Martyn Griffin, 2022. "Life during furlough: Challenges to dignity from a changed employment status," Industrial Relations Journal, Wiley Blackwell, vol. 53(6), pages 523-544, November.
    4. Israel Escudero-Castillo & Fco. Javier Mato-Díaz & Ana Rodriguez-Alvarez, 2021. "Furloughs, Teleworking and Other Work Situations during the COVID-19 Lockdown: Impact on Mental Well-Being," IJERPH, MDPI, vol. 18(6), pages 1-16, March.
    5. Magnus Sverke & Lena Låstad & Johnny Hellgren & Anne Richter & Katharina Näswall, 2019. "A Meta-Analysis of Job Insecurity and Employee Performance: Testing Temporal Aspects, Rating Source, Welfare Regime, and Union Density as Moderators," IJERPH, MDPI, vol. 16(14), pages 1-29, July.
    6. Speer, Andrew B. & Dutta, Subhadra & Chen, Menghan & Trussell, Glenn, 2019. "Here to stay or go? Connecting turnover research to applied attrition modeling," Industrial and Organizational Psychology, Cambridge University Press, vol. 12(3), pages 277-301, September.
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