Training, voluntary turnover, and firm financial performance
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Date
2021
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Abstract
Several studies suggest that organizational practices promoting human resource
development (HRD), such as training, increase organizational performance. However,
most of these studies rely on the use of subjective measures and cross-sectional designs.
Moreover, this line of research has mostly focused on general overall indicators of HRD
rather than addressing different dimensions of HRD which may help researchers and
practitioners better understand the complexity of the HRD-performance link. The main
objective of this study was to examine the effect of employee exposure to HRD and
resource investment in HRD, on voluntary turnover. Additionally, we aimed to examine
the interaction between these two dimensions of HRD in predicting voluntary turnover, as
well as the conditional indirect effect from employee exposure to HRD, to organizational
financial performance, through the mediating role of voluntary turnover. We tested our
proposed moderated mediation model using objective firm-level data collected at three
points over a three-year period, from a sample of 72 companies. We found evidence that
employee exposure to HRD was negatively related to voluntary turnover and—
indirectly—positively related to firm financial performance. Additionally, we found that
these effects were amplified when the moderating variable—resource investment in
HRD—was high. Noteworthy, this is the first study to examine the interactive effect
between these two dimensions of HRD. Thus, this study contributes to the scientific
literature by offering new insights about the conditions under which organizational
training practices may impact voluntary turnover and, subsequently, firm financial
performance. Practical and research implications are discussed.
Description
Tesis (Magíster en Psicología Laboral-Organizacional)--Pontificia Universidad Católica de Chile, 2021