Collective Turnover and Unit Performance: Exploring a Dynamic Relationship

43 Pages Posted: 16 Jul 2019

See all articles by Eugene Kim

Eugene Kim

Georgia Institute of Technology - Scheller College of Business

Minki Kim

College of Business, Korea Advanced Institute of Science and Technology (KAIST)

Do Won Kwak

Korea University

Sungjoon Nam

City University of Hong Kong; Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick; University of Chicago GSB

Date Written: July 16, 2019

Abstract

Drawing on context-emergent turnover theory, we empirically investigate the relationship between changes in collective turnover rates and unit performance and the moderating roles of the quality and quantity of departed, remaining, and newly hired employees, turnover dispersion, and pay dispersion over time. Using insurance company data for 2,988 sales agents within 126 units across 55 months, we found that changes in turnover rates were negatively related to changes in unit performance after accounting for baseline turnover rates. A high turnover rate at baseline mitigated the negative relationship between changes in that rate and unit performance. Adjusting turnover variables for the quality of employees strengthened those relationships. Furthermore, high quality and a large quantity of replacement hires, high quality of remaining employees, high turnover dispersion, and high vertical pay dispersion mitigated the relationship between changes in turnover rates and unit performance. Implications for context-emergent turnover theory and human capital resources are discussed.

Keywords: collective turnover; unit performance; human capital resources; pay dispersion

JEL Classification: J63

Suggested Citation

Kim, Eugene and Kim, Minki and Kwak, Do Won and Nam, Sungjoon, Collective Turnover and Unit Performance: Exploring a Dynamic Relationship (July 16, 2019). Georgia Tech Scheller College of Business Research Paper No. 19-14. Available at SSRN: https://ssrn.com/abstract=3420563 or http://dx.doi.org/10.2139/ssrn.3420563

Eugene Kim

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Minki Kim

College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )

85 Hoegiro Dongdaemun-Gu
Seoul 02455
Korea, Republic of (South Korea)

Do Won Kwak (Contact Author)

Korea University ( email )

145 Anam-ro, Sungbuk-gu
Division of International Studies
Seoul, Seoul 02841
Korea, Republic of (South Korea)

Sungjoon Nam

City University of Hong Kong ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick ( email )

Janice H. Levin Bldg., Room 121
94 Rockafeller Road
Piscataway, NJ 08854-8054
United States
973-353-1645 (Phone)

HOME PAGE: http://home.uchicago.edu/~snam2

University of Chicago GSB ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

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