Turnover and Unit-Level Financial Performance: An Analysis of the Costs and Benefits of Voluntary and Involuntary Turnover in Unskilled Jobs

Hesford, James W.; Malina, Mary A.; Pizzini, Mina

doi:10.1108/s1474-787120150000026002

Cited by 8 publications

(9 citation statements)

References 50 publications

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“…McElroy et al (2001) found dismissal rates to be negatively correlated with same-year profitability. Two other empirical studies (Hesford, Malina, & Pizzini, 2016;Subramony & Holtom, 2011) hypothesized and found dismissal rates to be negatively associated with performance. Batt and Colvin (2011) found the effect of dismissal rates on performance to be negative and similar to that of VTO but hypothesized this negative effect on the basis of movement costs and operational disruption.…”

Section: Utility Analysis Summarymentioning

confidence: 98%

A theoretical assessment of dismissal rates and unit performance, with empirical evidence.

Maltarich¹,

Reilly²,

DeRose³

2020

Journal of Applied Psychology

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Unit-level dismissal rates have rarely been studied, but utility analysis suggests that increasing dismissal rates can improve performance by increasing the contribution of a unit's workers. This proposition comports with other theory around dismissals but contradicts substantial empirical evidence. We extend the staffing utility framework, taking a multilevel perspective and attending to both within-and between-unit effects of dismissal rate practices. We test our theory in monthly observations from 1,047 retail locations over almost 3 years. Our results explain how between-unit associations between workforce contribution and unit performance can mask the within-unit benefit of increasing dismissal rates. This insight reconciles theory with prior evidence, although some researchers have interpreted them to be at odds. A better understanding of the complex causes and consequences of dismissal rates has the potential to open new avenues of research and inform practice in ways that promote unit effectiveness.

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Section: Utility Analysis Summarymentioning

confidence: 98%

A theoretical assessment of dismissal rates and unit performance, with empirical evidence.

Maltarich¹,

Reilly²,

DeRose³

2020

Journal of Applied Psychology

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“…Studies show that high turnover has a negative effect on productivity and customer outcome, and that it is a significant part of the indirect costs in an organization (Hesford et al 2016). There are also costs regarding utilizing experienced workforce to train and socialize newcomers when using mentorship training.…”

Section: Theoretical Background 21 What Is Educational Relevance?mentioning

confidence: 99%

“…There are also costs regarding utilizing experienced workforce to train and socialize newcomers when using mentorship training. Until the newcomers are fully proficient, the productivity of the experienced workforce may drop (Hesford et al 2016) .…”

Section: Theoretical Background 21 What Is Educational Relevance?mentioning

confidence: 99%

On Work Relevance of Adult Education: A Case Study Narrative

Vold¹,

Haave²,

Kaloudis³

2020

EJKM

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There is an increased focus on relevance of higher education. Mostly it is about enhanced job opportunities or job advancements for the individual. However, relevance of higher education may also be towards solving important issues or problems at a workplace. There are some necessary preconditions as to how an educational activity becomes relevant. Firstly, the student must be capable to discover how generic knowledge and acquired skills may or may not apply to concrete situations at work. This requires experience, understanding of the norms and culture of the organisation and a certain form of practical intelligence. Secondly, the conditions at work place must be conducive to innovation and change in various ways. In this article, we present a case study where employee turnover and lack of effective training routines were a major efficiency constraint in a Norwegian firm. With constant competition, changes in markets and other factors that influence the sustainability of an organization, cutting costs, such as high turnover and the time from being newcomer to being fully operative in the job. The responsible for training activities in the firm realized that additional formal education at the higher education level was needed, and he decided to enrol in a Knowledge Management study program at The Inland Norway University of Applied Sciences in order to learn how he could improve knowledge management and learning processes of new employees at his workplace. The case study ultimately demonstrates how crucial the interplay between content and form of education on one hand and specific conditions facilitating changes and improvements at work on the other is for the relevance in formal higher education narrative.

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“…Many reasons could lead employees to think about quitting and leaving their jobs, which is entitled by "employee turnover intentions." The existing literature assumes that the loss of high performers is harmful to the organization, whereas the exit of low performers can improve the overall organizational performance (Hesford, Malina, & Pizzini, 2016). However, employee turnover intention is usually considered to be a common concern at work; thus, it is crucial to identify and understand the possible causes, which can help predict employee turnover (Oruh, et al, 2020).…”

Section: Reasons Behind Employee Turnover Intentionsmentioning

confidence: 99%

“…According to a survey by Willis Tower Watson, one in three employees will leave an organization within two years (Hall, 2019). Turnover is costly to organizations, and previous literature has shown considerable costs associated with employee turnover (Hesford, Malina, & Pizzini, 2016). The costs include about "one-third of the worker's annual earnings, temporary replacement workers, and lost productivity" (Agovino, 2019, p. 2).…”

Section: Costs Of Employee Turnover Intentionsmentioning

confidence: 99%

The Moderating Effect of Technostress on The Relationship between Personality Traits and Employee Turnover Intentions. (c2022)

Ghosn¹

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Organizations all around the world face turnover, which is caused by multiple reasons, and one of them could be personality traits of the employees. The purpose of this study is to examine the nature of the relationship between personality traits and employee turnover intentions, while studying the moderating effect of technostress on this relationship. Technostress constitutes an important variable since recently, most employees are frequently using information and communication technologies (ICTs) at their work, which is causing them technostress. The nature of this research is quantitative, in which the relationship between the chosen variables has been measured using an online questionnaire, sent to respondents working in the Middle East. The data was later on analyzed through SPSS statistical software. The study finds that there is a negative relationship between personality traits and employee turnover intentions, and that technostress moderates, partially moderates some traits, and do not moderate others.

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Turnover and Unit-Level Financial Performance: An Analysis of the Costs and Benefits of Voluntary and Involuntary Turnover in Unskilled Jobs

Cited by 8 publications

References 50 publications

A theoretical assessment of dismissal rates and unit performance, with empirical evidence.

A theoretical assessment of dismissal rates and unit performance, with empirical evidence.

On Work Relevance of Adult Education: A Case Study Narrative

The Moderating Effect of Technostress on The Relationship between Personality Traits and Employee Turnover Intentions. (c2022)

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