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Turnover rates and organizational performance: a meta-analysis
1Owen Graduate School of Management, Vanderbilt University, Nashville, TN 37221, USA. TaeYoun.Park@owen.vanderbilt.edu
The Journal of Applied Psychology
|December 19, 2012
Summary
High employee turnover negatively impacts organizational performance. This meta-analysis reveals the relationship
Area of Science:
- Organizational Psychology
- Human Resource Management
- Business Administration
Background:
- Employee turnover is a significant concern for organizations.
- Understanding the link between turnover and performance is crucial for strategic decision-making.
Purpose of the Study:
- To quantify the relationship between employee turnover and organizational performance.
- To identify factors moderating this relationship.
- To guide future research in turnover literature.
Main Methods:
- A meta-analysis was performed on 300 total correlations (N = 309,245) and 110 independent correlations (N = 120,066).
- Moderator analyses examined organizational, contextual, and methodological variables.
- Sample-level regressions explored potential curvilinear relationships.
Main Results:
- A significant negative relationship exists between total turnover rates and organizational performance (ρ = -.15).
- Voluntary (ρ = -.15) and reduction-in-force turnover (ρ = -.17) showed stronger negative impacts than involuntary turnover (ρ = -.01).
- The relationship varied significantly based on employment systems, performance dimensions, region, and entity size.
Conclusions:
- Employee turnover, particularly voluntary, has a measurable negative effect on organizational performance.
- Organizational characteristics and context significantly influence the turnover-performance link.
- Future research should investigate potential curvilinear effects and refine understanding of moderating factors.
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