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Is High Employee Turnover Really Harmful? An Empirical Test Using Company Records

Arie C. Glebbeek and Erik H. Bax
The Academy of Management Journal
Vol. 47, No. 2 (Apr., 2004), pp. 277-286
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/20159578
Page Count: 10
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Is High Employee Turnover Really Harmful? An Empirical Test Using Company Records
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Abstract

We tested the hypothesis that employee turnover and firm performance have an inverted U-shaped relationship: overly high or low turnover is harmful. Our analysis was based on economic performance data from 110 offices of a temporary employment agency. These offices had high variation in turnover but were otherwise similar, allowing control for important intervening variables. Regression analysis revealed a curvilinear relationship; high turnover was harmful, but the inverted U-shape was not observed with certainty.

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