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Meta-analytic review of employee turnover as a predictor of firm performance

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Hancock, Julie I., Allen, David G., Bosco, Frank A., McDaniel, Karen R. and Pierce, Charles A. (2013) Meta-analytic review of employee turnover as a predictor of firm performance. Journal of Management Studies, Volume 39 (Number 3). pp. 573-603. doi:10.1177/0149206311424943

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Official URL: http://dx.doi.org/10.1177/0149206311424943

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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.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: Journal of Management Studies
Publisher: Wiley-Blackwell Publishing Ltd.
ISSN: 0022-2380
Official Date: March 2013
Dates:
DateEvent
March 2013Published
Volume: Volume 39
Number: Number 3
Page Range: pp. 573-603
DOI: 10.1177/0149206311424943
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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