IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v20y2023i9p5664-d1134206.html
   My bibliography  Save this article

Furloughed Employees’ Voluntary Turnover: The Role of Procedural Justice, Job Insecurity, and Job Embeddedness

Author

Listed:
  • Felix Ballesteros-Leiva

    (Department of Management, Université Laval, Québec, QC G1V 0A6, Canada)

  • Sylvie St-Onge

    (Department of Management, HEC Montréal, Montreal, QC H3T 2A7, Canada)

  • Marie-Ève Dufour

    (Department of Management, Université Laval, Québec, QC G1V 0A6, Canada)

Abstract

During the COVID-19 lockdown period, several employers used furloughs, that is, temporary layoffs or unpaid leave, to sustain their businesses and retain their employees. While furloughs allow employers to reduce payroll costs, they are challenging for employees and increase voluntary turnover. This study uses a two-wave model (Time 1: n = 639/Time 2: n = 379) and confirms that furloughed employees’ perceived justice in furlough management and job insecurity (measured at Time 1) explain their decision to quit their employer (measured at Time 2). In addition, our results confirm that furloughed employees’ job embeddedness (measured at Time 1) has a positive mediator effect on the relationship between their perceived procedural justice in furlough management (measured at Time 1) and their turnover decision (Time 2). We discuss the contribution of this study to the fields of knowledge and practice related to turnover and furlough management to reduce their financial, human, and social costs.

Suggested Citation

  • Felix Ballesteros-Leiva & Sylvie St-Onge & Marie-Ève Dufour, 2023. "Furloughed Employees’ Voluntary Turnover: The Role of Procedural Justice, Job Insecurity, and Job Embeddedness," IJERPH, MDPI, vol. 20(9), pages 1-14, April.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:9:p:5664-:d:1134206
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/20/9/5664/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/20/9/5664/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Juan Laborda & Pilar Rivera-Torres & Vicente Salas-Fumas & Cristina Suárez, 2021. "Is there life beyond the Spanish government’s aid to furloughed employees by COVID-19?," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-21, June.
    2. Israel Escudero-Castillo & Fco. Javier Mato-Díaz & Ana Rodriguez-Alvarez, 2021. "Furloughs, Teleworking and Other Work Situations during the COVID-19 Lockdown: Impact on Mental Well-Being," IJERPH, MDPI, vol. 18(6), pages 1-16, March.
    3. Magnus Sverke & Lena Låstad & Johnny Hellgren & Anne Richter & Katharina Näswall, 2019. "A Meta-Analysis of Job Insecurity and Employee Performance: Testing Temporal Aspects, Rating Source, Welfare Regime, and Union Density as Moderators," IJERPH, MDPI, vol. 16(14), pages 1-29, July.
    4. Carl M. Campbell III & Kunal S. Kamlani, 1997. "The Reasons for Wage Rigidity: Evidence from a Survey of Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 759-789.
    5. Peter Hamilton & Oonagh Harness & Martyn Griffin, 2022. "Life during furlough: Challenges to dignity from a changed employment status," Industrial Relations Journal, Wiley Blackwell, vol. 53(6), pages 523-544, November.
    6. Speer, Andrew B. & Dutta, Subhadra & Chen, Menghan & Trussell, Glenn, 2019. "Here to stay or go? Connecting turnover research to applied attrition modeling," Industrial and Organizational Psychology, Cambridge University Press, vol. 12(3), pages 277-301, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adam Elbourne & Debby Lanser & Bert Smid & Martin Vromans, 2008. "Macroeconomic resilience in a DSGE model," CPB Discussion Paper 96.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Robert Dur & Jan Tichem, 2015. "Altruism and Relational Incentives in the Workplace," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(3), pages 485-500, September.
    3. da Silveira, Jaylson Jair & Lima, Gilberto Tadeu, 2021. "Wage inequality as a source of endogenous macroeconomic fluctuations," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 35-52.
    4. Jonas Agell & Helge Bennmarker, 2003. "Endogenous Wage Rigidity," CESifo Working Paper Series 1081, CESifo.
    5. David Amirault & Paul Fenton & Thérèse Laflèche, 2013. "Asking About Wages: Results from the Bank of Canada’s Wage Setting Survey of Canadian Companies," Discussion Papers 13-1, Bank of Canada.
    6. repec:hal:wpspec:info:hdl:2441/6762 is not listed on IDEAS
    7. Fehr, Ernst & Goette, Lorenz, 2005. "Robustness and real consequences of nominal wage rigidity," Journal of Monetary Economics, Elsevier, vol. 52(4), pages 779-804, May.
    8. Luca Gambetti & Julián Messina, 2018. "Evolving Wage Cyclicality in Latin America," The World Bank Economic Review, World Bank, vol. 32(3), pages 709-726.
    9. Ed Burton & David John Edwards & Chris Roberts & Nicholas Chileshe & Joseph H. K. Lai, 2021. "Delineating the Implications of Dispersing Teams and Teleworking in an Agile UK Construction Sector," Sustainability, MDPI, vol. 13(17), pages 1-21, September.
    10. Kim, Jinill & Ruge-Murcia, Francisco J., 2009. "How much inflation is necessary to grease the wheels?," Journal of Monetary Economics, Elsevier, vol. 56(3), pages 365-377, April.
    11. Ana María Iregui B. & Ligia Alba Melo B. & María Teresa Ramírez G., 2009. "Are wages rigid in Colombia?: Empirical evidence based on a sample of wages at the firm level," Borradores de Economia 571i, Banco de la Republica de Colombia.
    12. Fernando Martins & M. Druant, 2009. "How are Firms’ Wages and Prices Linked: Survey Evidence in Europe," Working Papers w200918, Banco de Portugal, Economics and Research Department.
    13. George Chouliarakis & Mónica Correa-López, 2009. "A Fair Wage Model of Unemployment with Inertia in Fairness Perceptions," Centre for Growth and Business Cycle Research Discussion Paper Series 130, Economics, The University of Manchester.
    14. Armin Falk, "undated". "Homo Oeconomicus Versus Homo Reciprocans: Ans�tze f�r ein Neues Wirtschaftspolitisches Leitbild?," IEW - Working Papers 079, Institute for Empirical Research in Economics - University of Zurich.
    15. Barigozzi, Francesca & Manna, Ester, 2020. "Envy in mission-oriented organisations," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 395-424.
    16. Armin Falk & Ernst Fehr & Urs Fischbacher, 2003. "On the Nature of Fair Behavior," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 20-26, January.
    17. Jacques Wels, & Booth, Charlotte & Wielgoszewska, Bożena & Green, Michael J. & Di Gessa, Giorgio & Huggins, Charlotte F. & Griffith, Gareth J. & Kwong, Alex S.F. & Bowyer, Ruth C.E. & Maddock, Jane & , 2022. "Mental and social wellbeing and the UK coronavirus job retention scheme: Evidence from nine longitudinal studies," Social Science & Medicine, Elsevier, vol. 308(C).
    18. Martin Weiss, 2009. "Higher Tax Rates on Labor? Evidence from German Panel Data," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 65(1), pages 73-92, March.
    19. Smith, Jennifer C., 2002. "Pay Cuts And Morale : A Test Of Downward Nominal Rigidity," The Warwick Economics Research Paper Series (TWERPS) 649, University of Warwick, Department of Economics.
    20. Antonio Cabrales, 2010. "The causes and economic consequences of envy," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 1(4), pages 371-386, September.
    21. Simon G�chter & Ernst Fehr, "undated". "Fairness in the Labour Market � A Survey of Experimental Results," IEW - Working Papers 114, Institute for Empirical Research in Economics - University of Zurich.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:20:y:2023:i:9:p:5664-:d:1134206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.