During the period known as the Great Resignation, the United States witnessed a marked increase in voluntary employee resignations roughly a year into the COVID-19 pandemic, contrasting starkly with the high unemployment rates that characterized the pandemic’s early stages. This phenomenon prompted business leaders to delve deeper into the factors influencing an employee’s decision to voluntarily leave or stay in a position amidst prevalent job insecurity. Researchers from Hiroshima University, Texas Christian University, and the University of Warwick conducted two studies to explore how job embeddedness — elements that reinforce an employee’s commitment to their workplace — affects voluntary turnover under these conditions. They employed the conservation of resources (COR) theory as their conceptual framework, positing that individuals strive to acquire and safeguard valuable resources to avoid future losses.

Professor Vesa Peltokorpi of Hiroshima University explained their approach: using COR theory, they aimed to understand why some employees, faced with potential job loss, seek new employment opportunities and leave their organizations while others do not. The first study assessed the relationship between job insecurity and job search, predicting that job insecurity would be positively linked to voluntary job turnover. Using online surveys to measure respondents’ job insecurity and their degree of on-the-job embeddedness, the researchers conducted follow-up surveys three months and twenty-four months after the initial one to evaluate job search activities and voluntary turnover, respectively. Their findings supported their hypothesis, showing that job search mediates the relationship between job insecurity and voluntary turnover. Employees with higher on-the-job embeddedness are less likely to search for new jobs despite feeling insecure in their current positions.

The second study involved a new group of full-time employees and expanded the scope to include both on-the-job and off-the-job embeddedness, encompassing home and community ties. This study not only confirmed the findings of the first but also provided insights into how different types of embeddedness influence turnover intentions and actual turnover. Peltokorpi noted that while on-the-job embeddedness decreases the likelihood of employees considering quitting, off-the-job embeddedness has the opposite effect, exacerbating the link between job insecurity and turnover. This suggests that community-based resources, which offer social support and informational benefits, play a complex role for individuals experiencing job insecurity.

The research advances our understanding of why employees decide to stay or leave and underscores the nuanced roles that different forms of embeddedness play in these decisions. The cost implications of voluntary turnover are substantial for employers, with replacement expenses potentially reaching 200% of an employee’s annual salary.

While the studies shed considerable light on the dynamics of voluntary turnover, Peltokorpi admits that further research is needed. He advocates for more refined conceptual and empirical studies to better understand how on- and off-the-job embeddedness can mitigate or facilitate the effects of job insecurity on employment outcomes. Such research would provide deeper insights for business leaders and academics into the complex interplay of personal, organizational, and community factors that influence employee turnover.

More information: Vesa Peltokorpi et al, Job embeddedness and voluntary turnover in the face of job insecurity, Journal of Organizational Behavior. DOI: 10.1002/job.2728

Journal information: Journal of Organizational Behavior Provided by Hiroshima University