Furloughed Employees’ Voluntary Turnover: The Role of Procedural Justice, Job Insecurity, and Job Embeddedness

Felix Ballesteros-Leiva (), Sylvie St-Onge and Marie-Ève Dufour
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Felix Ballesteros-Leiva: Department of Management, Université Laval, Québec, QC G1V 0A6, Canada
Sylvie St-Onge: Department of Management, HEC Montréal, Montreal, QC H3T 2A7, Canada
Marie-Ève Dufour: Department of Management, Université Laval, Québec, QC G1V 0A6, Canada

IJERPH, 2023, vol. 20, issue 9, 1-14

Abstract: During the COVID-19 lockdown period, several employers used furloughs, that is, temporary layoffs or unpaid leave, to sustain their businesses and retain their employees. While furloughs allow employers to reduce payroll costs, they are challenging for employees and increase voluntary turnover. This study uses a two-wave model (Time 1: n = 639/Time 2: n = 379) and confirms that furloughed employees’ perceived justice in furlough management and job insecurity (measured at Time 1) explain their decision to quit their employer (measured at Time 2). In addition, our results confirm that furloughed employees’ job embeddedness (measured at Time 1) has a positive mediator effect on the relationship between their perceived procedural justice in furlough management (measured at Time 1) and their turnover decision (Time 2). We discuss the contribution of this study to the fields of knowledge and practice related to turnover and furlough management to reduce their financial, human, and social costs.

Keywords: furloughed employees; voluntary turnover; procedural justice; job insecurity; job embeddedness (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
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