Collective turnover and firm performance: the joint effects of working time-reducing human resource practices and human capital flow and composition under the 52-hour rule in South Korea

ABSTRACT

This study examines whether the effect of collective turnover can be contingent upon working-time reducing human resource (HR) practices and human capital flow and composition (i.e. the hiring ratio of newcomers and the ratio of contingent workers) in the context of the 52-hour rule in South Korea (hereafter Korea). As the Korean government shifts from a 68-hour workweek to a 52-hour workweek system, firms are implementing various working-time reducing HR practices, potentially affecting collective turnover and human capital. Analysing 273 Korean firms, we find that higher collective turnover relates to lower firm performance, especially with increased working-time HR practices. However, employing more contingent workers mitigates this negative impact. Our study contributes to the literature on collective turnover and strategic human resource management by suggesting that working time-reducing HR practices should be carefully utilized in the context of the 52-hour rule in Korea.

KEYWORDS:

• Collective turnover
• contingent workers
• firm performance
• working time-reducing HR practices
• 52-hour rule

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Eun-Ji Oh

Eun-Ji Oh is a PhD student in the Management Department of the College of Business Administration at Sungkyunkwan University. She received her Master’s degree in Business Administration from Sungkyunkwan University. Her research interests base upon strategic human resource management, turnover, workplace diversity, and strategic human capital.

Yong Geun Kim

Yong Geun Kim is Adjunction Professor of Division of Humanities & Social Sciences at Pohang University of Science and Technology (POSTECH) in Pohang, South Korea and the Deputy Director of Corporate Citizenship Research Institute. He received MBA from Seoul National University, a PhD from Sungkyunkwan University and professional certificate from the Stanford Graduate School of Business. His research focuses on ESG, corporate citizenship, leadership and HR.

Youngsang Kim

Youngsang Kim (PhD, University of South Carolina, USA) is an Associate Professor of Management at the SKK Business School, Sungkyunkwan University in Seoul, South Korea. His primary research areas include strategic human capital, strategic human resource management, turnover, HR analytics, contingent workers, workplace diversity, and environmental sustainability.