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Collective turnover response over time to a unit-level shock.

Jenna R Pieper1, Mark A Maltarich2, Anthony J Nyberg2

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Collective turnover, or employee departures, can be explained by event systems theory. A unit-level shock, like a general manager departure, triggers a disruption phase, leading to increased voluntary turnover after a delay.

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Area of Science:

  • Organizational Behavior
  • Human Resource Management
  • Sociology

Background:

  • Collective turnover is a critical organizational phenomenon.
  • Understanding the drivers of employee departures following unit-level disruptions is essential for organizational stability.
  • Existing theories may not fully capture the temporal dynamics and social mechanisms involved in collective turnover.

Purpose of the Study:

  • To provide a theoretical explanation for collective turnover mechanisms following unit-level shocks.
  • To apply event systems theory to model the disruption phase and its impact on turnover.
  • To identify delays and cumulative effects in voluntary turnover after a shock.

Main Methods:

  • Theoretical application of event systems theory.
  • Empirical examination of collective turnover data.
  • Analysis of 239 general manager departures in a large U.S. retailer (2012-2014).

Main Results:

  • A disruption phase following a unit-level shock was identified.
  • A delay before the onset of the disruption phase was observed.
  • Cumulative abnormal voluntary turnover was found during the disruption phase.

Conclusions:

  • Event systems theory offers a robust framework for understanding collective turnover.
  • Unit-level shocks, such as leadership changes, can initiate a delayed and cumulative turnover response.
  • Organizational interventions should consider these temporal dynamics and social mechanisms.