Effects of selection and training on unit-level performance over time: A latent growth modeling approach.

Abstract

Surprisingly few data exist concerning whether and how utilization of job-related selection and training procedures affects different aspects of unit or organizational performance over time. The authors used longitudinal data from a large fast-food organization (N = 861 units) to examine how change in use of selection and training relates to change in unit performance. Latent growth modeling analyses revealed significant variation in both the use and the change in use of selection and training across units. Change in selection and training was related to change in 2 proximal unit outcomes: customer service performance and retention. Change in service performance, in turn, was related to change in the more distal outcome of unit financial performance (i.e., profits). Selection and training also affected financial performance, both directly and indirectly (e.g., through service performance). Finally, results of a cross-lagged panel analysis suggested the existence of a reciprocal causal relationship between the utilization of the human resources practices and unit performance. However, there was some evidence to suggest that selection and training may be associated with different causal sequences, such that use of the training procedure appeared to lead to unit performance, whereas unit performance appeared to lead to use of the selection procedure.

Collective Turnover at the Group, Unit, and Organizational Levels: Evidence, Issues, and Implications

“…With several exceptions Hurley & Estelami, 2007), negative relationships between training and collective turnover have been reported (Detert et al, 2007;Ferratt et al, 2005;Gelade & Ivery, 2003;Malos & Campion, 2000;Riordan et al, 2005;Ryan et al, 1996). Further, Van Iddekinge et al (2009) found that retention rates increased over time as restaurants made greater use of a new-hire training program. On the other hand, studying over 4,000 Canadian workplaces, Haines et al (2010) found a positive relationship between employer-provided training and voluntary turnover rates, concluding that employer investments facilitate worker mobility.…”

“…Another study showed that the use of validated selection procedures interacted with selection ratios to predict involuntary turnover rates, suggesting that companies that hired selectively using valid selection procedures had little need to terminate workers (Shaw et al, 1998). Van Iddekinge et al (2009) found that greater actual use of an established cutoff for selection (based on selection test scores) was generally associated with higher retention rates, but changes in the use of the selection practice over time were not related to changes in retention rates. Researchers have also examined actual staffing levels (e.g., proportion of nurses to hospital beds).…”

“…In multivariate analyses, Koys (2001) found that total turnover rates did not predict profit after controllable expenses or profit after controllable expenses as a percentage of sales. Van Iddekinge et al (2009) reported that turnover rates were negatively related to profits against targets, but changes in turnover rates were not associated with changes in profits. Detert, Trevino, Burris, and Andiappan (2007) found that neither management nor crew turnover rates predicted operating profit as a percentage of sales.…”

Ethical Climate and Job Attitude in Fashion Retail Employees’ Turnover Intention, and Perceived Organizational Sustainability Performance: A Cross-Sectional Study

“…Hence, turnover intention has been the key measure to assessing an organization's performance. In particular, the researchers show that employees' low turnover intention positively affects an organization's financial performance, including sales [47], profit [48], return on assets [49], and even customer service in the retail setting [26].…”

Construction of a Strategic Business Process Reengineering Model: Empirical Research on the After-sale Service Process of SH

“…Organizations can gain the capital required for labor development, clustered knowledge, skills, capabilities, and other features (KSAOs) (Ployhart, Weekley & Baughman, 2006). Initially, while the organization may have to pay more to invest in labor, the recovery of the cost includes an increase in productivity, more work for employees, and/or specific knowledge and skills of the organization (Van Iddekinge, Ferris, Perrewé , Blass, & Heetderks, 2009). …”