Average employee tenure, voluntary turnover ratio, and labour productivity: Evidence from Japanese firms

Yoshio Yanadori, Takao Kato

Research output: Contribution to journalArticlepeer-review

33 Citations (Scopus)

Abstract

Using Japanese firms' data, this study shows that voluntary turnover ratio is negatively related to firm labour productivity. While recent studies have reported the negative influence of turnover on organizational performance (Kacmar et al., 2006; Shaw et al., 2005a), they analysed only US samples. Our study contributes to researchers' efforts to generalize the relationship between voluntary turnover and organizational performance. Turnover is detrimental to labour productivity as it reduces the stock of firm-specific human capital that a firm retains. Findings suggest that firm average employee tenure mediates the relationship between voluntary turnover and labour productivity.

Original languageEnglish
Pages (from-to)1841-1857
Number of pages17
JournalInternational Journal of Human Resource Management
Volume18
Issue number10
DOIs
Publication statusPublished - 2007 Oct
Externally publishedYes

Keywords

  • Japanese firms
  • Labour productivity
  • Strategic human resource management
  • Voluntary turnover

ASJC Scopus subject areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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