Source: Scott Cheney, PAROS Group, 2006
Myths about turnover abound; some say it is inevitable and there is little that can be done to stop it. Some argue that turnover is a serious symptom of deeper organizational problems. Still others imply that turnover is good since an organization needs to do periodic housecleaning in order to keep things neat and tidy.
In fact, turnover is an indication that something is wrong. At a minimum, the organization and the employee have been mismatched and often the only thing the organization has to show for it is another costly statistic.
In this era of continuing — and increasing — labor shortages, organizations cannot afford the tedious and expensive process of recruiting applicants, only to have them leave in discontent.
But just how costly is turnover? PAROS Group has devised this “cost-of-turnover” worksheet to determine how turnover affects an organization’s bottom line. You may be surprised.
Source: Curt Nickisch, NPR Morning Edition, August 21, 2008
A growing number of companies are laying people off for part of the workweek to weather the economic slowdown. Eighteen states have programs whereby employees collect unemployment for the hours that they don’t work at their full-time jobs.
Source: Steven J. Davis, John Haltiwanger, Ron S. Jarmin, Josh Lerner, Javier Miranda, US Census Bureau Center for Economic Studies, Paper No. CES-WP-08-07, March 1, 2008
The impact of private equity on employment arouses considerable controversy. Labor groups concerned about the fortunes of workers employed at buyout firms contend private equity firms destroy jobs. By contrast private equity associations and other groups have released a number of recent studies that claim positive effects of private equity on employment following the takeover. In this paper we conduct a comprehensive examination of the impact of private equity buyouts on the employment outcomes of firms that are taken over by these investment firms. We focus the analysis on two different dimensions. First, what are the employment outcomes of workers employed at establishments existing at the time of the buyout? Second, what is growth performance of the firm following the buyout? We conduct the analysis using a unique linked dataset covering the universe of US firms and information regarding US buyout operations between 1980 and 2005. We find targeted establishments exhibit net employment contraction, higher job destruction and establishment exit relative to controls. However, targeted firms exhibit higher greenfield entry and more acquisition and divestiture.
Source: Astraea Augsberger, Wendy Schudrich, Brenda G. McGowan, Charles Auerbach, Children and Youth Services Review, Volume 34, Issue 7, July 2012
From the abstract:
A significant challenge facing the child welfare system is the recruitment and retention of a stable and qualified workforce. Several studies have identified individual and organizational factors impacting workforce turnover. The current study expands upon previous research by utilizing a mixed methods design to examine the relationship between workers’ perceptions of respect in the workplace and their intention to leave. Thematic analysis of the qualitative data revealed that workers perceive a lack of respect in five domains including organizational support, fair salary and benefits, fair promotion potential, adequate communication and contingent rewards. Based on the qualitative findings, researchers designed the Respect Scale, a quantitative scale measuring the concept perceived respect. Results from the logistic regression found that workers who score lower on the Respect Scale were significantly more likely to intend to leave their current job. Research and practice implications are discussed.
Source: Sally Coleman Selden, Review of Public Personnel Administration, December 2006, Vol. 26 no. 4
Although several studies have looked at voluntary turnover in public organizations, little research has examined involuntary turnover and average time to terminate employees in public organizations. This study focuses on the impact of a state’s discipline system on its use and rapidity of discharge of state employees. Results show that factors associated with utilization of dismissal of state employees differ from factors associated with how quickly states terminate employees. This study shows that states adopting at-will employment are no more likely to fire employees than states with civil service employment systems are, but they do terminate employment relationships more quickly.
Source: Julius Getman, Perspectives on Work, Summer 2006, Volume 10, no. 1
… Despite the positive role large unionized companies play in American society, a fundamental conflict exists between the short-term financial focus of many in the investment and management communities and the longer-term focus of others, including employees who value job security and long-term investors who seek consistent growth. Conflicts over corporate control revolve around this tension. From a strategic union perspective, developing an action plan around making large companies more accountable to employees and other stakeholders, including long-term shareholders, must involve a number of new approaches.
Given the track record of labor’s success in trying new approaches, we have our work cut out for us. Still, unions represent employees in nearly 80 percent of the largest publicly traded companies in the United States. Perhaps more significant is the fact that nearly half the assets in American equity markets are held by the pension funds and savings plans of organized workers and union-represented employers. Taken together, unions have the potential to exert considerable leverage on capital markets.
Source: Jody Hoffer Gittell, Perspectives on Work, Summer 2006, Volume 10, no. 1
Layoffs often make sense from a traditional management perspective as a way to weather the storm by adjusting supply to demand. When demand drops, managers often reduce supply and lay off excess workers to avoid paying them when revenues are insufficient to cover costs.
Another perspective, however, stresses that high-performance work systems (which produce value for workers, managers, and investors) require loyalty and commitment in order to work effectively. According to this view, managers should seek to avoid layoffs when demand falls. Furthermore, if relationships help individuals and organizations bounce back from a crisis, then it is important to avoid harming relationships at such a critical time. From this perspective, layoffs are a problem, not a solution.