Variable work schedules, unit-level turnover, and performance before and during the COVID-19 pandemic

Area of Science:

• Human Resource Management
• Organizational Behavior
• Business Administration

Background:

• Variable work schedules (VWS) are increasingly used to enhance staffing flexibility.
• The impact of VWS on unit-level turnover and financial performance remains under-researched.
• The COVID-19 pandemic highlighted the need to understand flexible work arrangements during crises.

Purpose of the Study:

• To examine the effects of VWS on organizational turnover and financial performance.
• To investigate whether VWS use impacts performance during the COVID-19 pandemic.
• To explore unit-level turnover as a mediator between VWS and financial performance.

Main Methods:

• Analysis of data from 1,678 units of a U.S. quick-service restaurant chain.
• Study covered different phases of the COVID-19 pandemic (October 2019-December 2020).
• Examined the relationship between VWS, turnover rates, and financial performance.

Main Results:

• Greater use of VWS was associated with higher unit-level turnover rates.
• The positive relationship between VWS and turnover was more pronounced during the pandemic.
• Managerial reliance on VWS decreased financial performance and recovery, mediated by turnover.

Conclusions:

• The common assumption that staffing flexibility via VWS universally aids organizational adaptation is questioned.
• Practitioners and scholars should reconsider the benefits of VWS in uncertain environments.
• VWS may negatively impact performance and increase turnover, particularly during crises.