Does Losing Temporary Workers Matter? The Effects of Planned Turnover on Replacements and Unit Performance

Bocconi University Management Research Paper No. 10

Forthcoming in Academy of Management Journal

56 Pages Posted: 7 Jan 2019

See all articles by Federica De Stefano

Federica De Stefano

University of Pennsylvania

Rocio Bonet

IE Business School

Arnaldo Camuffo

Bocconi University - Department of Management and Technology

Date Written: November 2, 2018

Abstract

This study examines the performance consequences of planned turnover. In particular, we investigate the departure of temporary workers due to the expiration of their contracts. We reconcile the contradictory predictions of collective turnover research—that any type of worker exits impairs organizational performance—and of contingent work research—that temporary worker exits improve organizational performance because they provide flexibility. We argue that the planned turnover of temporary workers has an inverted U-shaped relationship with unit performance because it combines flexibility benefits and disruption costs. We also argue that the costs of planned temporary worker turnover are moderated by the proportion and the firm-specific experience of their replacements. We test these arguments using longitudinal monthly data from a leading multinational company in the food and beverage industry, and find support for our hypotheses. The study suggests that managers hiring temporary workers should consider the cost of losing them and challenges the widespread scholarly and managerial assumption that temporary workers are disposable resources.

Keywords: planned turnover, temporary workers, replacements, rehires

Suggested Citation

De Stefano, Federica and Bonet, Rocio and Camuffo, Arnaldo, Does Losing Temporary Workers Matter? The Effects of Planned Turnover on Replacements and Unit Performance (November 2, 2018). Forthcoming in Academy of Management Journal. Available at SSRN: https://ssrn.com/abstract=3311454

Federica De Stefano (Contact Author)

University of Pennsylvania ( email )

Philadelphia, PA 19104
United States

Rocio Bonet

IE Business School ( email )

Alvarez de Baena, 4
Madrid, Madrid 28006
Spain

Arnaldo Camuffo

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy
390258362630 (Phone)
390258362634 (Fax)

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