Potential positive consequences of employee turnover on remaining employees

Abstract

The past century has seen expansive and pervasive research into employee turnover, the focus of which has largely been on its causes, consequences as seen from the organisation’s perspective, costs relative to the firm’s performance, and on strategies aimed at predicting turnover intent and prevention strategies to enhance employee retention. Very little of the past employee turnover research has focused on its positive consequences with respect to remaining employees. The objective of this qualitative case study research was to explore the potential positive consequences of employee turnover on the remaining employees. The interpretivist research philosophy guided the research, whilst the mono method exploratory qualitative research methodology was applied. Data was collected cross-sectionally from a purposively chosen sample of 15 participants via the in-depth, open-ended semi-structured interview method. The sample comprised a mixture of management and bargaining unit employees. The conceptualised integrative Effort-Reward Model theoretical framework provided the lens through which this research was conducted. Key findings suggest that employee turnover results in remaining employees being positively impacted, albeit under conducive workplace environments where harmony, respect, trust, and empowerment prevail. Finally, the ‘Modified Effort-Reward Model’ which delineates the role management should play in setting up workplace environments that enable remaining employees to be positively impacted amid employee turnover events is proposed. It is anticipated that the application of the ME-RM model will culminate a reduction in operational costs associated with the replacement of departing employees, where currently between 90% and 200% of the departing employee’s annual salary is incurred when a replacement employee is recruited.