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Employee Turnover and Organizational Performance: a Study of the Brazilian Retail Sector

Author

Listed:
  • Luciana Carvalho de Mesquita Ferreira

    (Insper)

  • Ciro Barbosa de Aquino Almeida

    (Insper)

Abstract

This study investigates the relationship between employee turnover and performance in retailing. To achieve this aim, we used data from a single company with several comparable branches and tested whether stores with lower employee turnover have better financial and organizational results (sales and workplace accidents, respectively). This study also analyzes whether Human resources practices, such as rewards, recognition and training, affect employee turnover. The empirical results indicate a strong relationship between employee turnover and sales, supporting results from previous studies. However, the additional relationships were not confirmed. The results do not rule out some hypotheses about the relationship between employee turnover and labor accidents, and further suggest that human resources management practices may increase employee turnover, depending on their motivation and strategic alignment.

Suggested Citation

  • Luciana Carvalho de Mesquita Ferreira & Ciro Barbosa de Aquino Almeida, 2015. "Employee Turnover and Organizational Performance: a Study of the Brazilian Retail Sector," Brazilian Business Review, Fucape Business School, vol. 12(4), pages 27-56, June.
    • Handle: RePEc:bbz:fcpbbr:v:12:y:2015:i:4:p:27-56
    as

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    References listed on IDEAS

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    1. Zeynep Ton & Robert S. Huckman, 2008. "Managing the Impact of Employee Turnover on Performance: The Role of Process Conformance," Organization Science, INFORMS, vol. 19(1), pages 56-68, February.
    2. Gary S. Becker, 1994. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition," NBER Books, National Bureau of Economic Research, Inc, number beck94-1.
    3. Pencavel, John H, 1972. "Wages, Specific Training, and Labor Turnover in US Manufacturing Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(1), pages 53-64, February.
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    Cited by:

    1. Ahsan Akbar & Xinfeng Jiang & Zeeshan Fareed & Minhas Akbar, 2021. "Does frequent leadership changes influence firm performance? Insights from China," Economics and Business Letters, Oviedo University Press, vol. 10(3), pages 291-298.

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