This study draws on collective turnover and human capital theories to understand the effects of employee inflows and outflows on the relationship between collective human capital and labor productivity. Using data from 1,960 Italian manufacturing firms, we find that collective voluntary turnover negatively moderates the relationship between human capital (percentage of college graduates) and labor productivity, where the negative effects of collective turnover are greater when firms have a greater percentage of college graduates in their workforce. Similarly, collective new hiring rate also negatively moderates the relationship between college graduates and labor productivity. However, collective involuntary turnover does not moderate the relationship between college graduates and labor productivity. Overall, the results suggest that the positive relationship between organizational human capital levels and productivity is weaker when the churning (employee inflows and outflows) of employees is greater. The implications of these findings are discussed, along with directions for future research.

(2014). Human capital and productivity: the impact of collective employee inflows and outflows . In ACADEMY OF MANAGEMENT ANNUAL MEETING PROCEEDINGS. Retrieved from http://hdl.handle.net/10446/32165

Human capital and productivity: the impact of collective employee inflows and outflows

DELLA TORRE, Edoardo Ezio;
2014-01-01

Abstract

This study draws on collective turnover and human capital theories to understand the effects of employee inflows and outflows on the relationship between collective human capital and labor productivity. Using data from 1,960 Italian manufacturing firms, we find that collective voluntary turnover negatively moderates the relationship between human capital (percentage of college graduates) and labor productivity, where the negative effects of collective turnover are greater when firms have a greater percentage of college graduates in their workforce. Similarly, collective new hiring rate also negatively moderates the relationship between college graduates and labor productivity. However, collective involuntary turnover does not moderate the relationship between college graduates and labor productivity. Overall, the results suggest that the positive relationship between organizational human capital levels and productivity is weaker when the churning (employee inflows and outflows) of employees is greater. The implications of these findings are discussed, along with directions for future research.
2014
DELLA TORRE, Edoardo Ezio; Sikora, David; Zatzick, Christopher Douglas; Solari, Luca
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