Third, we test and extend CET theory’s assertion that the timing of turnover matters. To explore this
assertion, we examine how the effects of turnover unfold over time in a complex, co-evolving system
of human capital flows. We assert that the relative timing of actions and reactions within the human
capital flow system plays a critical role in determining when, how much, and how long unit-level
turnover will affect outcomes. To date, these temporal dimensions have not been studied in previous
unit-level turnover research (Park & Shaw, 2013). Further, empirical approaches that use cross-sectional or panel data may overestimate or artificially downplay the true effects, depending on when the data were gathered, and relationships may be mis-specified. For instance, if turnover rate effects on unit performance are studied prior to rehiring (or prior to when replacement employees are fully functioning), results can exaggerate the negative longer-term impact of turnover by attributing negative and static outcomes to fluid situations Conversely, if turnover rate effects are unknowingly studied after rehiring, results may underestimate turnover’s impact. To address this issue, we develop theory about the interplay among the determining factors within the system over time, including developing specific hypotheses about the duration of effects of human capital flows
on unit outcomes.
Third, we test and extend CET theory’s assertion that the timing of turnover matters. To explore thisassertion, we examine how the effects of turnover unfold over time in a complex, co-evolving systemof human capital flows. We assert that the relative timing of actions and reactions within the humancapital flow system plays a critical role in determining when, how much, and how long unit-levelturnover will affect outcomes. To date, these temporal dimensions have not been studied in previousunit-level turnover research (Park & Shaw, 2013). Further, empirical approaches that use cross-sectional or panel data may overestimate or artificially downplay the true effects, depending on when the data were gathered, and relationships may be mis-specified. For instance, if turnover rate effects on unit performance are studied prior to rehiring (or prior to when replacement employees are fully functioning), results can exaggerate the negative longer-term impact of turnover by attributing negative and static outcomes to fluid situations Conversely, if turnover rate effects are unknowingly studied after rehiring, results may underestimate turnover’s impact. To address this issue, we develop theory about the interplay among the determining factors within the system over time, including developing specific hypotheses about the duration of effects of human capital flowson unit outcomes.
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