Meta-Analytic Review of Employee Turnover as a Predictor of Firm Performance

Julie I. Hancock, David G. Allen, University of Memphis, Frank A. Bosco, Marshall University, Karen R. McDaniel, Arkansas State University, and Charles A. Pierce, University of Memphis, published “Meta-Analytic Review of Employee Turnover as a Predictor of Firm Performance” on October 24th, 2011 in the Journal of Management’s OnlineFirst section. To read other OnlineFirst articles, please click here.

The abstract:

Previous research has primarily revealed a negative relationship between collective employee turnover and organizational performance. However, this research also suggests underlying complexity in the relationship. To clarify the nature of this relationship, the authors conduct a meta-analytic review in which they test and provide support for a portion of Hausknecht and Trevor’s model of collective turnover. The authors’ meta-analysis includes 48 independent samples reporting 157 effect size estimates (N = 24,943), tests six hypothesized moderator variables, and provides path analyses to test alternative conceptualizations of the turnover– organizational performance relationship. Results indicate that the mean corrected correlation between turnover and organizational performance is –.03, but this relationship is moderated by several important variables. For example, the relationship is stronger in manufacturing and transportation industries (–.07), for managerial employees (–.08), in midsize organizations (–.07), in samples from labor market economies (–.05), and when organizational performance is operationalized in terms of customer service (–.10) or quality and safety (–.12) metrics.In addition, proximal performance outcomes mediate relationships with financial performance. The authors discuss implications of their results for theory and practice and provide directions for future research.

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This entry was posted in Performance and tagged , , by Cynthia Nalevanko, Editor, Management INK. Bookmark the permalink.

About Cynthia Nalevanko, Editor, Management INK

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 900 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, and Washington DC, our publishing programme includes more than 560 journals and over 800 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

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