Minimising voluntary turnover post employee downsizing in South Africa

Abstract

Organisations are increasingly turning to downsizing to respond to the increasing pressures of remaining sustainable in a highly competitive environment. This is done with the aim of reducing organisational costs in order to improve the performance on the bottom line. Unfortunately, downsizing often results in organisations losing more employees than anticipated as highly mobile and skilled employees voluntarily leave the organisation as a result of the downsizing process. In the end, the organisation may be faced with the increasing costs of replacing the skilled employees and thereby negating the cost reduction initiatives that the downsizing process was meant to achieve. This research report investigates the key factors that influence employees to consider voluntary turnover as a result of the downsizing process. This is done with the aim of guiding organisations to design the downsizing process that will help minimise the voluntary turnover of employees. The research is based on a survey that was done in one selected organisation and complemented by surveys conducted on general employees employed in South African organisations. The findings of the research indicate that employees are influenced to consider voluntary turnover mainly as a result of the trust that they have in management and the consistency that the downsizing process was conducted. Practical implications are given that could be used to improve the organisations' reduction of voluntary turnover intentions. This study adds to literature by expanding the attachment theory by identifying which of the emotions experienced by employees during downsizing influence voluntary turnover intentions.