Keeping Your Headcount When All about You Are Losing Theirs: Downsizing, Voluntary Turnover Rates, and the Moderating Role of Hr Practices

Although both downsizing and voluntary turnover have been topics of great interest in the organizational literature, little research has addressed the possible relationship between the two. Using organization-level data from multiple industries, we first investigate whether downsizing predicts voluntary turnover rates. Second, to lend support to our causal model, we examine whether this relationship is mediated by aggregated levels of organizational commitment. Third, we test whether the downsizing-turnover rate relationship: (1) is mitigated by HR practices that tend to embed employees in the organization or convey procedural fairness; and (2) is strengthened by HR practices that enhance career development. Results support the hypothesized main, mediated, and moderated effects.