Turnover and organizational performance: A comparative analysis of the effects of voluntary, involuntary, and reduction-in-force turnover.

Abstract

Data were collected from 31 regional subunits of a national financial services company to examine differential effects of 3 types of turnover (voluntary, involuntary, and reduction-in-force) on measures of organizational subunit performance. Although each form of turnover exhibited adverse effects on subunit performance when examined separately, partial correlation results revealed greater and more pervasive adverse effects for reduction-in-force turnover (i.e., downsizing) in comparison with the effects of voluntary and involuntary turnover. The results confirm the negative effects of downsizing, suggesting the need to move beyond the traditional voluntary-involuntary classification scheme used in turnover research.