Collective Data on Collective Turnover: What Factors Most Affect Turnover Rates?

Overview and Key Findings: Numerous studies of the causes and consequences of organizational turnover that is, turnover rates rather than an individual\u27s decision to stay or leave—have appeared in the last century. Using meta-analysis (a quantitative methodology for summarizing results across studies), Cornell researchers (Ph.D. students Angela Heavey and Jake Holwerda, along with faculty member John Hausknecht) analyzed data from 82 published studies and found: Investments in high-commitment HR systems, emphasis on internal mobility, and provision of firm-specific training were associated with lower turnover rates; Positive attitudes toward the job, supervisors, and the organization were associated with lower turnover, but effects were weaker than those found for high-commitment HR systems; Expectation-enhancing practices such as electronic monitoring and job routinization forecasted higher departure rates; similarly, greater availability o f alternatives in the labor market signaled higher turnover; Lower turnover was associated with certain employee characteristics— turnover dropped as the average age and average tenure of employees increased (or, turnover was highest among younger and less tenured workers); There was robust evidence showing the damaging effects of increased turnover on multiple HR and business outcomes including customer satisfaction, production efficiency, sales, financial performance, error rates, and absenteeism; and Many of the causes and consequences of turnover are well-documented: Organizations can actively reduce, maintain, or increase turnover rates for specific employee groups with adequate attention and resources

Retaking Ability Tests in a Selection Setting: Implications for Practice Effects, Training Performance, and Turnover

This field study investigated the effect of retaking identical selection tests on subsequent test scores of 4,726 candidates for law enforcement positions. For both cognitive ability and oral communication ability selection tests, candidates produced significant score increases between the 1st and 2nd and the 2nd and 3rd test administrations. Furthermore, the repeat testing relationships with posthire training performance and turnover were examined in a sample of 1,515 candidates eventually selected into the organization. As predicted from persistence and continuance commitment rationales, the number of tests necessary to gain entry into the organization was positively associated with training performance and negatively associated with turnover probability

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

Studies of the causes and consequences of turnover at the group, unit, or organizational level of analysis have proliferated in recent years. Indicative of its importance, turnover rate research spans numerous academic disciplines and their respective journals. This broad interest is fueled by the considerable implications of turnover rates predicting broader measures of organizational effectiveness (productivity, customer outcomes, firm performance) as well as by the related perspective that collective turnover is an important outcome in its own right. The goal of this review is to critically examine and extract meaningful insights from research on the causes and consequences of group, unit, and organizational turnover. The review is organized around five major “considerations,” including (1) measurement and levels of analysis issues, (2) consequences, (3) curvilinear and interaction effects, (4) methodological and conceptual issues, and (5) antecedents. The review concludes with broad directions for future research

Candidate Persistence and Personality Test Practice Effects: Implications for Staffing System Management

Candidates persist in selection settings for numerous reasons, prompting several concerns regarding staffing system management. Predictors of the propensity to retest and personality test practice effects were investigated among a sample of 15,338 candidates who applied for supervisory positions (and 357 who repeated the selection process) over a four-year period with a large organization in the service industry. Results reveal greater likelihood of retesting among internal candidates and overall evidence of small to moderate personality test practice effects. Compared to passing candidates who retested for various reasons, failing candidates pursued alternative response strategies upon retesting and generated dimension-level practice effects that reached .40 to .60, whereas passing candidates generally replicated their initial profiles. For several subscales, low initial scores were associated with practice effects that exceeded a full standard deviation. Implications for research, practice, and policy are discussed

Causes and Consequences of Collective Turnover: A Meta-Analytic Review

Given growing interest in collective turnover (i.e., employee turnover at unit and organizational levels), the authors propose an organizing framework for its antecedents and consequences and test it using meta-analysis. Based on analysis of 694 effect sizes drawn from 82 studies, results generally support expected relationships across the 6 categories of collective turnover antecedents, with somewhat stronger and more consistent results for 2 categories: human resource management inducements/investments and job embeddedness signals. Turnover was negatively related to numerous performance outcomes, more strongly so for proximal rather than distal outcomes. Several theoretically grounded moderators help to explain average effect-size heterogeneity for both antecedents and consequences of turnover. Relationships generally did not vary according to turnover type (e.g., total or voluntary), although the relative absence of collective-level involuntary turnover studies is noted and remains an important avenue for future research

ILR Impact Brief - Deconstructing Absenteeism: Satisfaction, Commitment, and Unemployment

[Excerpt] Group attitudes about satisfaction and commitment are negatively associated with absenteeism and interact in predicting absenteeism at the unit level. The effects are particularly strong in areas where jobs are plentiful but fade away where jobs are scarce. In other words, higher levels of absenteeism in a work group are associated with lower levels of job satisfaction and organizational commitment in labor markets with low unemployment, and vice versa. Organizational commitment is the crucial factor: absenteeism is higher in work units with low levels of commitment regardless of the level of satisfaction. Group norms about absenteeism and other contextual factors, such as work processes, contribute to the variance among work units. Satisfaction and commitment are not related to changes in absenteeism over time

Unit-Level Voluntary Turnover Rates and Customer Service Quality: Implications of Group Cohesiveness, Newcomer Concentration, and Size

Despite substantial growth in the service industry and emerging work on turnover consequences, little research examines how unit-level turnover rates affect essential customer-related outcomes. The authors propose an operational disruption framework to explain why voluntary turnover impairs customers’ service quality perceptions. Based on a sample of 75 work units and data from 5,631 employee surveys, 59,602 customer surveys, and organizational records, results indicate that unit-level voluntary turnover rates are negatively related to service quality perceptions. The authors also examine potential boundary conditions related to the disruption framework. Of three moderators studied (group cohesiveness, group size, and newcomer concentration), results show that turnover’s negative effects on service quality are more pronounced in larger units and in those with a greater concentration of newcomers

Why High and Low Performers Leave and What They Find Elsewhere: Job Performance Effects on Employment Transitions

Little is known about how high and low performers differ in terms of why they leave their jobs, and no work examines whether pre-quit job performance matters for post-quit new-job outcomes. Working with a sample of approximately 2,500 former employees of an organization in the leisure and hospitality industry, we find that the reported importance of a variety of quit reasons differs both across and within performance levels. Additionally, we use an ease-of-movement perspective to predict how pre-quit performance relates to post-quit employment, new-job pay, and new-job advancement opportunity. Job type, tenure, and race interacted with performance in predicting new-job outcomes, suggesting explanations grounded in motivation, signaling, and discrimination in the external job market

When Does Employee Turnover Matter? Dynamic Member Configurations, Productive Capacity, and Collective Performance

In theory, employee turnover has important consequences for groups, work units, and organizations. However, past research has not revealed consistent empirical support for a relationship between aggregate levels of turnover and performance outcomes. In this paper, we present a novel conceptualization of turnover to explain when, why, and how it affects important outcomes. We suggest that greater attention to five characteristics—leaver proficiencies, time dispersion, positional distribution, remaining member proficiencies, and newcomer proficiencies—will reveal dynamic member configurations that predictably influence productive capacity and collective performance. We describe and illustrate the five properties, explain how particular member configurations exacerbate or diminish turnover’s effects, and present a new measurement approach that captures these characteristics in a collective context and over time

Organizational Strategy and Staffing

In this chapter, we draw linkages between theory and research from strategic human resource management (and its focus on predicting unit/firm performance) with the key issues and empirical findings from the staffing and selection literature (and its focus on predicting individual performance). We organize the chapter around the fit and flexibility framework (Wright & Snell, 1998) to discuss the dual concerns of fitting staffing and selection systems to strategic needs while simultaneously enabling flexibility to respond to future demands. Implications for research and practice explain how such an approach may alter and enhance conventional views regarding staffing system characteristics such as the types of criteria, knowledge, skills, abilities, and other characteristics (KSAOs), and selection methods that are considered