Effect of employee turnover on firm performance

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2024-07-09
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en
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This thesis conducted a panel data analysis on the relationship between employee turnover and firm performance. The goal of this thesis is to determine the strength of the relationship, testing moderators related to organizations, context, and methodologies, and based on the results, proposing directions for future research on employee turnover. Hausknecht and Trevor (2011) performed a meta-analysis on 115 articles regarding employee turnover and found mixed results. Current literature finds mixed results for the effect of employee turnover on firm performance. There is also no consensus on a possible curvilinear relationship between employee turnover and firm performance. Furthermore, there is a gap in literature on possible moderating variables, like industry, firm size and the age of the firm. The Workspace database is used for gathering data of 1423 firms over a 10 year timespan. The findings demonstrate a significant difference in the type of employee turnover. With voluntary turnover having a significant negative on firm performance, while the involuntary turnover has a positive effect on firm performance. The industry has a moderating effect on the relationship between employee turnover and firm performance, while the results of the age and size of the company are mixed and need further research. Key words: employee turnover; firm performance; industry; panel data
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Faculteit der Managementwetenschappen
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