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High-performance work systems and firm performance: the mediation effect of the quality of employee turnover

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Abstract

This study aims to investigate: (a) the differences in how human resource (HR) practice bundles, which enhance skills, motivation, and opportunities, account for the turnover of high performers versus non-high performers; (b) whether the turnover of high performers has a stronger impact on firm performance compared to that of non-high performers; and (c) whether the turnover of high performers, rather than that of non-high performers, mediates the relationship between HR practices and firm performance. Research hypotheses were tested using data collected from 153 South Korean companies. The results indicated that (a) HR practice bundles enhancing motivation were most effective in retaining high performers, compared to those enhancing skills or opportunities; (b) the turnover of high performers had a substantially stronger impact on firm financial performance compared to that of non-high performers; and (c) the turnover of high performers mediated the impact of motivation-enhancing HR practices on firm financial performance.

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Notes

  1. Our results held in terms of supporting our hypotheses even when we added back the four dropped items.

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This paper was supported by Konkuk University in 2019.

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  1. College of Business Administration, Konkuk University, 120, Neungdong-ro, Gwangjin-gu, Seoul, 05029, Korea

    Kiwook Kwon

  2. College of Business Administration, Kangwon National University, Kangwondaehak-gil 1, Chuncheon-si, Gangwon-do, 24341, Korea

    Chiho Ok

  3. Korea University Business School, Anam-ro 145, Seongbuk-gu, Seoul, 02841, Korea

    Kwanghyun Kim

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Kwon, K., Ok, C. & Kim, K. High-performance work systems and firm performance: the mediation effect of the quality of employee turnover. Asian Bus Manage (2024). https://doi.org/10.1057/s41291-024-00270-9

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