Category Archives: Turnover

The relationship between job performance and turnover – It’s not as simple as we thought! (IO Psychology)

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Topic: Job Performance, Turnover, Culture
Publication: Journal of Applied Psychology (JAN 2012)
Article: The effect of culture on the curvilinear relationship between performance and turnover
Authors: Michael C. Sturman, Lian Shao, & Jan H. Katz
Reviewed by: Alexandra Rechlin

The relationship between job performance and turnover has long been thought to be curvilinear (U-shaped). In other words, the highest and lowest performers are most likely to quit their jobs. Numerous studies have replicated these findings, but these studies were almost entirely conducted in the United States. In a recent article, Michael Sturman and his colleagues investigated the effect that culture may have on the relationship between performance and turnover.

The authors analyzed data from employees in 24 countries. They compared the countries in terms of in-group collectivism, power distance, and uncertainty avoidance. In a culture that is highly collectivistic, people have a strong desire to be part of a group, and group goals are more important than individual ones. Power distance refers to the extent that people in that culture are accepting of unequal power distribution, and uncertainty avoidance is the extent to which a culture’s members are comfortable with uncertainty and risk.

Sturman and his colleagues found that the curvilinear relationship between job performance and turnover didn’t really hold up in some cultures. The U-shaped relationship was weaker (in other words, it’s a much flatter U) for collectivist cultures and for cultures high in power distance and high in uncertainty avoidance. Voluntary turnover was less likely in those cultures than in cultures high in individualism and low in power distance and uncertainty avoidance. The relationship between performance and turnover was stronger (more U-shaped) in cultures that were high in performance orientation.

These findings are important because they indicate that the nature of the relationship between performance and turnover is not the same for all cultures. Therefore, the same HR practices used to reduce turnover may or may not be effective, depending on the country in which they’re used. HR practices (e.g., efforts to encourage turnover of low performers, retention of high performers) should be chosen based on the target culture.

Sturman, M. C., Shao, L., & Katz, J. H. (2012). The effect of culture on the curvilinear relationship between performance and turnover. The Journal of Applied Psychology, 97, 46-62. doi: 10.1037/a0024868

human resource management, organizational industrial psychology, organizational management

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Jobs: What Makes the Difference for Moms After Childbirth? (IO Psychology)

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Topic: Work-Life Balance, Turnover
Publication: Journal of Applied Psychology (SEP 2011)
Article: Health and Turnover of Working Mothers After Childbirth Via the Work-Family Interface: An Analysis Across Time
Authors: Dawn S. Carlson, Joseph G. Grzywacz, Merideth Ferguson and Emily M. Hunter, C. Randall Clinch and Thomas A. Arcury
Reviewed By: Mary Alice Crowe-Taylor

It has been shown that certain resources in jobs such as supervisor and coworker support decrease turnover of new mothers, but little research has been done on other positive aspects of jobs like skill discretion, job security and schedule control, and how they affect the work – family relationship.

Skill discretion is being able to use a variety of skills in a job and provides meaning for a job. It enriches family life via spillover from work life (as shown in previous research).

Job security should also be big for working moms, as they tend to have many concerns about job loss. These fears arise from maternity leaves and necessary absences due to childcare. These anxieties can affect performance.

Lastly, it seems like having schedule control would be a big benefit to working moms, by allowing them to have some control over their working times.

The findings of this study for these job variables? Drum roll please…skill discretion and job security were significant contributors to work-to-family enrichment as hypothesized, but schedule control’s effect depended on the type of job of the working moms. For those moms who were in jobs with high psychological demands, having schedule control exacerbated the work-to-family conflict, which was already higher for them than for moms in jobs with low psychological demands. The authors theorized that perhaps these moms were using schedule control to try to “fit more in” their everyday lives ratherthan to organize their existing responsibilities.

Additional results were as expected: greater work-to-family conflict predicted poorer physical and mental health over time, and turnover occurred more frequently for those with poorer mental or physical health. Greater work-to-family enrichment did predict better physical health, but surprisingly it did not predict better mental health. Instead, there was not a relationship between work-to-family enrichment and mental health. In other words, those moms who reported greater work-to-family enrichment did not also generally report greater mental health, but they did have a tendency to report greater physical health. So, they may or may not have been mentally exhausted, but physically they were fine. Interesting…

Carlson, D.S., Grzywacz, J.G., Ferguson, M. and Hunter, E.M., Clinch, C.R. and Arcury, T.A. (2011). Health and Turnover of Working Mothers After Childbirth Via the Work-Family Interface: An Analysis Across Time. Journal of Applied Psychology, 96(5), 1045-1054.

human resource management, organizational industrial psychology, organizational management

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Smile Like You Mean It: Reducing Turnover By Communicating Organizational Honesty (IO Psychology)

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Topic: Recruiting, Turnover
Publication: Personnel Psychology
Article: Mechanism Linking Realistic Job Previews with Turnover: A Meta-
Analytic Path Analysis
Authors: Earnest, D. R., Allen, D. G., & Landis, R. S.
Reviewed By: Katie Bachman

Nerd alert! I love me some realistic job previews (RJPs to those in the know). So, you can imagine my glee when I saw a brand-spankin’ new meta-analysis in the current P-Psych that dealt with RJPs. RJPs include any kind of manuals, presentations, videos, and written or verbal information that contains positive, negative, and neutral
information to job candidates or new hires. The big difference between an RJP and regular old recruiting materials is the inclusion of negative and neutral information. Basically, rather than trying to make your company look like puppies and rainbows, you throw in some stuff about the storm clouds too, with the end result being that potential employees have a more well-rounded impression of what their life would be like if they worked for you. Previous researchers (myself included!) have tried to tease out the mechanism behind the RJP – what really makes them work. Hark! We may have found one piece of the puzzle! (I hear bells chiming, is that just me?)

The results of my new favorite meta-analysis suggest that it may be all about perceived organizational honesty. By giving potential employees the good, the bad, and the ugly, your organization is communicating honesty, literally and symbolically. You’re giving them balanced information, but you’re also signaling that you are a truthful and upright partner in their job experience. An RJP sends a message that you won’t lie to them once they’re on the job and people like that sort of thing. The long term effect of all this up-front truth telling is reduced voluntary turnover. And who doesn’t like that?

Earnest, D. R., Allen, D. G., & Landis, R. S. (2011). Mechanism
linking realistic job previews with turnover: A meta-analytic path analysis. Personnel Psychology, 64, 865-897.

human resource management, organizational industrial psychology, organizational management

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IO Psychology:Organizational Culture: If the Shoe Fits

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Topic: Job Attitudes, Turnover
Publication: Personnel Psychology (2011)
Article: Understanding newcomers’ adaptability and work-related outcomes: testing the mediating roles of perceived P-E fit variables
Authors: M. Wang, Y. Zhan, E. McCune, D. Truxillo
Reviewed by: Chelsea Rowe

When considering a new position at a new firm, we often try to predict how well we will fit with that company. We consider how well our own goals align with those of the company (Person-Organization Fit), how well we could get along with the people we’d potentially be working closely with (Person-Group Fit), and how well the demands of the actual position line up with our own unique skills and abilities (Person-Job Fit). These three considerations combine to formulate a more holistic picture of how well we will fit in within a potential work setting (Person-Environment Fit).

Finding a good-fit can be easier for some than for others. In a study of Chinese workers, Wang, et al. (2011) investigated how new employees’ adaptability influenced their likelihood of perceiving fit within organizations. Adaptability also isn’t a “one size fits all” concept: different types of adaptability were uniquely related to specific aspects of Fit. The more flexible & broad-minded someone is with new people, termed interpersonal adaptability, the more apt he or she is to experience Person-Group Fit. Cultural adaptability, describing active attempts to assimilate into various cultures, fostered greater Person-Organization Fit. Those who are willing to participate and adjust oneself to fit within the culture at his or her workplace seem to also feel more as though the organization’s goals represent some of their own goals.

Wang and his colleagues checked up on employees’ satisfaction, performance, and turnover two months after these newcomers began their new jobs. Perceived fit mattered for these work-related outcomes! When employees express greater Person-Environment Fit, not only did they experience greater satisfaction with their jobs, but also had better performance ratings (as assessed by their bosses), and were less likely to turnover.

Newcomers with greater adaptability may make the transition into new roles more easily. However, managers can’t hire on the sole basis of adaptability; more knowledge and skills may make the less adaptable candidate the better person for the job. In this case, managers can take active attempts to ensure that their new-hire experiences greater Person-Environment fit. The more an employee feels at home, the more satisfied & productive he or she will be and the less likely he or she will be to leave the company.

Wang, M., Zhan, Y., McCune, E., & Truxillo, D. (2011). Understanding newcomers’ adaptability and work-related outcomes: Testing the mediating roles of perceived P-E fit variables. Personnel Psychology, 64(1), 163-189.

human resource management,organizational industrial psychology, organizational management

 

Human Resource Management: Reduce Turnover? It Depends…

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Topic: Human Resource Management, Turnover
Publication: Personnel Psychology (SUMMER 2011)
Article: The Impact of Motivation, Empowerment, and Skill-Enhancing Practices on Aggregate Voluntary Turnover: The Mediating Effect of Collective Affective Commitment
Authors: Timothy M. Gardner, Patrick M. Wright, Lisa M. Moynihan
Reviewed by: Mary Alice Crowe-Taylor, Ph.D.

The greater the use of motivation-enhancing practices such as pay raises and promotions, and empowerment-enhancing practices, such as quality-improvement and problem-solving groups, the less group-level turnover the organization will have, as shown in this longitudinal study with variables aggregated to the group level. The HR practices’ impact is partially indirect, through collective organizational commitment.

These results support SDT (Self Determination Theory) which explains that people need autonomy; they need to feel competent; and, thirdly, they need to feel as though they belong to the group. HR executives know that by meeting these needs, the organization is able to increase intrinsic motivation and positive work attitudes (including commitment to the organization). In contrast, the greater use of skill-enhancing practices (like tuition- reimbursement and formal training programs) was not linked to less turnover, rather it was linked to greater turnover, and the level of commitment to the organization didn’t make a difference.

This study found these results using 20 stand-alone business units of a large food distribution company. 1, 748 employees and 93 job groups under 20 HR Managers provided the data. The HR practices, commitment and turnover were all measured at the group level, rather than at the individual level. This macro-level of study provides evidence to support macro theories regarding optimization of organizational functioning.

So what are the key takeaways for HR executives? One is that the greater use of motivation and empowerment-enhancing practices leads to lower group turnover rates. For example, the authors give the following estimate for this sample, using model results: one could expect that a one standard deviation increase in motivation- enhancing practices will be associated with a 19.64% decrease in voluntary turnover.

Another key takeaway is that to offset or control aggregate voluntary turnover, organizations might also increase the use of motivation and empowerment-enhancing strategies that might directly impact voluntary turnover, such as merit pay, promotions and other incentives.

Gardner, T. M., Wright, P. M., & Moynihan, L. M. (2011). The Impact of Motivation, Empowerment, and Skill-Enhancing Practices on Aggregate Voluntary Turnover: The Mediating Effect of Collective Affective Commitment. Personnel Psychology, 64, 315-35.

human resource management,organizational industrial psychology, organizational management

 

Human Resources Management: For Some, The Grass is Always Greener

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Topic: Turnover, Human Resources
Publication: Journal of Vocational Behavior (online pre-publication)
Article: Is the past prologue for some more than others? The hobo syndrome and job complexity.
Authors: Becton, J. B., Carr, J. C., Judge, T. A.
Reviewed by: Larry Martinez


The fact is that employees are more mobile today than in decades past.  The former ideal of finding one company and staying there for one’s entire career has been replace by the reality of increased job movement for today’s workers.  But are some workers more likely to get the itch to leave than others?  And more importantly, is there anything that organizations can do to make these wayward workers want to stay?  The results of a study by Becton and colleagues (in press) directly inform these questions.

Based on a sample of 393 employees, these authors found that in general, those employees who had a history of changing jobs frequently (as assessed using biodata) were more likely to turnover in subsequent jobs.  However, this relationship was affected (moderated) by the complexity of the job (as measured by O*Net ratings).  This means that, theoretically, some people are more likely to want to leave their organizations (as evidenced by previous job mobility) and this pattern was even stronger for those in increasingly complex jobs. 

This could be because complex jobs take a longer amount of time to get used to and are fraught with more early onset frustrations as one learns the ropes, making it more likely for these more fickle employees to look for something else. 

These results discount the idea that job hopping is more likely for younger generations, but is instead a dispositional characteristic.  They do, however, lend credit to the idea that using past employment information might be informative with regards to future hiring decisions.  That is, you may be wary of hiring someone who has a history of job hopping.  And according to these results, this may be especially the case in complex jobs.  In addition, organizations may need to adopt specific strategies for retaining employees who have a history of changing jobs that differs from those who do not have this job mobility pattern. 

Becton, J. B., Carr, J. C., & Judge, T. A. (in press). Is the past prologue for some more than others? The hobo syndrome and job complexity. Journal of Vocational Behavior.

human resource management,organizational industrial psychology, organizational management

Job Satisfaction and Turnover…Now That’s Change We Can Believe In

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Topic: Job Attitudes, Turnover
Publication: Academy of Management Journal
Article: The Power of Momentum: A New Model of Dynamic Relationships Between Job
Satisfaction Change and Turnover Intentions
Authors: Chen, G., Ployhart, R.E., Cooper Thomas, H., Anderson, N., & Bliese, P.D
Reviewer: Neil Morelli

Let’s say you’re interested in using a job satisfaction (JS) survey to help predict turnover. Which would you say is more important, the absolute value of JS or the change in JS from time 1 to time 2? After proposing that JS is especially salient to an employee when it has deviated from an earlier reference point, Chen et al. (2011) argued the latter.

Chen et al. introduced the idea of “job satisfaction momentum”, or the systematic change in job satisfaction over time, and tested if it would influence the nature of the JS to turnover intention relationship. Their results indicated that JS change is negatively related to turnover intention change; as JS increased (declined), turnover intention declined (increased). In other words, it was the systematic change in JS that helped determine the change in turnover intentions.

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When Turnover Strikes: The (Possible) Cost of Pay Dispersion

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Topic: Compensation, Turnover
Publication: Journal of Applied Psychology (MAY 2011)
Article: Executive turnover: The influence of dispersion and other pay system characteristics
Authors: J. G. Messersmith, J. P. Guthrie, Y.-Y. Ji, & J.-Y. Lee
Reviewed By: Thaddeus Rada

It is probably not much of an exaggeration to say that being paid a fair wage or salary is one of the highest priorities of all employees in any organization. Therefore, it is not surprising that compensation is one of many factors in the workplace that can have an impact on employee turnover decisions. The current study, by Messersmith and colleagues, addresses how turnover at the highest level of an organization (the top management team, or TMT) might be impacted by pay dispersion (the size of the pay differences between different employees in the TMT).

Messersmith and colleagues used tournament theory as a guiding framework for their study. Tournament theory views organizations as competitive playing fields in which the goal of the “players” (the employees) is to move up in the organization in order to reap greater financial benefits. Among their hypotheses, the authors suggested that TMTs with greater pay dispersion (that is, larger pay differences between TMT members) would be more likely to experience turnover than organizations with less pay dispersion.

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Should I stay or should I go? Re-conceptualizing turnover

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Topic: Human Resources, Turnover
Publication: Journal of Applied Psychology (APR 2011)
Article: Examining the job search-turnover relationship: The role of embeddedness, job satisfaction, and available alternatives
Authors:  Swider, B. W., Boswell, W. R., & Zimmerman, R. D.
Reviewed by: Larry Martinez

It’s not uncommon that a bad day at work can send you to the classifieds section (or today’s technology-boosted equivalent) to see what alternative employment you might be able to drum up.  Most of the time, we’ll browse for a bit, decide that our job isn’t that bad, or that it would be too inconvenient for us to leave, or that there aren’t any better jobs out there for us anyway and forget about the whole thing.  Sometimes, though, this job search results in actually leaving one’s job.  Swider and colleagues (2011) examine what influences whether people stay or leave, given the fact that they are looking.

Most previous turnover theories include four components: job search, satisfaction with the current job, the cost of leaving, and availability of alternatives.  However, for the most part, these theories are framed such that these latter three components influence whether someone starts looking.  Swider and colleagues have reframed these relations and posited that satisfaction, cost, and alternatives are still important factors in determining whether someone actually leaves – after they have started looking for other jobs.  Their results show that, indeed, for employees looking for other jobs, those that were less satisfied, perceived lower cost of leaving (measured as the level of embeddedness in their current jobs), and were in a labor market with more opportunities, were more likely to actually quit.

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Dysfunctional employees? It could be attachment issues.

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Topic: Stress, Turnover, Citizenship Behavior
Publication: Journal of Applied Psychology
Article: Attachment at (Not to) Work: Applying Attachment Theory to Explain Individual Behavior in Organizations
Authors: D. A. Richards A.C.H. Schat
Reviewed By: Neil Morelli

People seem to inherently know that a job isn’t just about where you work, but also who you work with. Recent research has helped validate this feeling by studying how our behavior at work is partly determined by how attached, or unattached, we become to the people we work with. Specifically, attachment theory states that people are naturally motivated to associate with others in tough times, and the quantity and quality of this attachment is largely dependent on early life experiences.  For example, those who are “securely attached” tend to exhibit strong self worth and a trust of others.  At work, these attachment types help explain how we behave when presented with a challenging task or stressful moment.

Richards and Schat (2011) defined people who are considered to be “insecurely” attached as either being anxiously attached or avoidantly attached.  Anxiously attached people are those who have a low view of themselves and are thus the “needy and clingy” type, whereas the avoidantly attached have a low view of others and are thus distant and mistrusting. Either type demonstrates an inability to deal with adversity or effectively garner support from others.

After determining that there is a clear distinction between these two poor attachment styles, it was discovered that anxious types are more likely to rely on others for support, less likely to contribute through “extra” effort, and more likely to want to leave when faced with challenges; when avoidant types are faced with challenges they are more likely to put on a strong face, regulate emotions, and look to themselves instead of others for support.

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