Labour turnover and its effects on performance: an empirical test using firm data

Glebbeek, A. C. & Bax, E. H., 2002, Groningen: University of Groningen, SOM research school, 27 p. (SOM Research Reports).

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In this article we test the hypothesis that the relationship between labour turnover and the economic performance of the firm is bell-shaped: a turnover level too low has a negative effect and likewise does a level too high. Our analysis is based on economic performance data of 110 offices of a temp agency. Since these offices vary highly in labour turnover but are similar in product and operational management, the data enabled us to control for a number of important intervening variables. From a regression analysis it could be shown that labour turnover indeed is related to office performance in a curvilinear way, indicating that it is especially excessive turnover that matters. This result proved robust for both performance level and change of performance as the dependent variables.
Original languageEnglish
Place of PublicationGroningen
PublisherUniversity of Groningen, SOM research school
Number of pages27
Publication statusPublished - 2002

Publication series

NameSOM Research Reports

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