Staff turnover and organizational performance: The case of a microfinance organization

Giuliano Romina (), Godfroid Cécile () and Radermecker Laure ()
Additional contact information
Giuliano Romina: Human Resources and Responsible Organizations, Warocqué School of Business and Economics University of Mons, Mons, Belgium
Godfroid Cécile: Management and Organization Studies, Warocqué School of Business and Economics, University of Mons, Mons, Belgium
Radermecker Laure: Management and Organization Studies Warocqué School of Business and Economics, University of Mons, Mons, Belgium

Journal of Economics and Management, 2023, vol. 45, issue 1, 413-440

Abstract: Aim/purpose – This study examines the relationship between staff turnover and performance in the microfinance industry in a dynamic perspective and investigates some contingency factors that moderate this relationship. Design/methodology/approach – We ran random-effects and GMM models based on a database of 2,814 branch-month observations from a specific microfinance organization. Findings – It takes three months to see a significant negative impact of turnover on the volume of a branch’s loan portfolio. Moreover, it takes four months after the turnover event for this negative impact to be counterbalanced. After four months, turnover stops having negative consequences and even becomes advantageous in terms of loan portfolio growth, but this positive effect lasts only one month. The effect of turnover thus appears to be particularly limited in time. Finally, we find that the negative relationship between turnover rate and performance is weakened by the seniority level of departing loan officers and by the recruitment rate. Originality/value/contribution – First, this paper examines the duration of the consequences of turnover event, which is poorly studied in the literature. Second, it focuses on microfinance, an industry where relational capital is of high importance. Third, it extends the theory on turnover by highlighting that the seniority level of departing employees is a moderator in the relationship between turnover and organizational performance.

Keywords: staff turnover; performance; context-emergent theory; microfinance; GMM (search for similar items in EconPapers)
JEL-codes: G21 J63 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.22367/jem.2023.45.16 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:jecman:v:45:y:2023:i:1:p:413-440:n:4

DOI: 10.22367/jem.2023.45.16

Access Statistics for this article

Journal of Economics and Management is currently edited by Ewa Ziemba

More articles in Journal of Economics and Management from Sciendo
Bibliographic data for series maintained by Peter Golla ().