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The impact of employee turnover and turnover volatility on labor productivity: a flexible non-linear approach

Author

Listed:
  • Sophie de Winne
  • Elise Marescaux

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Luc Sels
  • Ilke van Beveren
  • Stijn Vanormelingen

Abstract

This article intends to further unravel the relationship between employee turnover and organizational performance. We test a complex non-linear relationship between turnover and performance, integrating different theoretical views (i.e. theories on human and social capital, operational disruptions and organizational learning) and using polynomial regressions. Based on organizational routines theory, we also consider the role of turnover volatility, i.e. the turbulence in turnover across time. To this end, we make use of longitudinal data of Belgian firms over a period of 10 years (1999–2008). Our results confirm the complex non-linear relationship such that organizations' labor productivity increases at low levels of turnover, reaches a peak and decreases afterwards in a negatively attenuated fashion. Moreover, turnover volatility is negatively associated with labor productivity, suggesting that organizations find it especially difficult to deal with strong and frequent changes in turnover across time. Finally, volatility also moderates the relationship between employee turnover and labor productivity. The higher turnover volatility, the less outspoken the positive results of small amounts of turnover. At high levels of turnover, firms with medium volatility suffer the most negative effects. Both research and practical implications of these findings are considered.

Suggested Citation

  • Sophie de Winne & Elise Marescaux & Luc Sels & Ilke van Beveren & Stijn Vanormelingen, 2019. "The impact of employee turnover and turnover volatility on labor productivity: a flexible non-linear approach," Post-Print hal-02998176, HAL.
  • Handle: RePEc:hal:journl:hal-02998176
    DOI: 10.1080/09585192.2018.1449129
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    Citations

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    Cited by:

    1. Volodymyr Martyniuk & Natalia Tsygylyk & Stanisław Skowron, 2021. "The Impact of the Covid-19 Pandemic on Key Indicators of Personnel Security: A Study with Neural Network Technologies," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 141-151.
    2. Md Aslam Mia & Hasanul Banna & Abu Hanifa Md Noman & Md Rabiul Alam & Md. Sohel Rana, 2022. "Factors affecting borrowers’ turnover in microfinance institutions: A panel evidence," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 55-84, March.
    3. Chux Gervase Iwu & Abdullah Promise Opute & Olayemi Abdullateef Aliyu & Chukuakadibia Eresia-Eke & Tichaona Buzy Musikavanhu & Afeez Olalekan Jaiyeola, 2021. "A Structural Equation Modelling Evaluation of Antecedents and Interconnections of Call Centre Agents’ Intention to Quit," JRFM, MDPI, vol. 14(4), pages 1-21, April.
    4. Zubanov, Nick & Shakina, Elena, 2023. "Performance Costs and Benefits of Collective Turnover: A Theory-Driven Measurement Framework and Applications," IZA Discussion Papers 16413, Institute of Labor Economics (IZA).

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