The Dark Side of Wars for Talent and Layoffs: Evidence from Korean Firms
- 주제(키워드) war for talent , layoffs , employee development , human resources , firm performance
- 주제(기타) GREEN & SUSTAINABLE SCIENCE & TECHNOLOGY; Environmental Sciences; Environmental Studies
- 설명문(일반) [Cho, Hee-jung] Ewha Womans Univ, 26 Sangil Ro 6 Gil, Seoul 05282, South Korea; [Cho, Hee-jung] Samsung Engn, HR Team, Samsung GEC, 26 Sangil Ro 6 Gil, Seoul 05282, South Korea; [Ahn, Ji-Young] Ewha Womans Univ, Ewha Sch Business, 52 Ewhayeodae Gil, Seoul 03760, South Korea
- 등재 SCIE, SSCI, SCOPUS
- 발행기관 MDPI
- 발행년도 2018
- URI http://www.dcollection.net/handler/ewha/000000151689
- 본문언어 영어
- Published As http://dx.doi.org/10.3390/su10051365
초록/요약
In this study, we examined the effects of layoffs and wars for talent on firms' performance. The simultaneous use of layoffs and "war-for-talent" practices has become part of the management strategy for adjusting workforce competencies. We suggest that war-for-talent practices decrease organizational performance when laying people off at the same time. Moreover, we argue that investment in employees' skill development during the same period as layoffs and a war for talent can enhance organizational sustainability in increasing employee commitment, trust and organizational flexibility. Using a longitudinal survey conducted at over 653 Korean firms by a government-sponsored research institution, the results show that war-for-talent practices do not have a significant impact on firms' performance. Moreover, our findings indicate a negative relationship between war-for-talent practices and financial performance when conducting layoffs and, as expected, a positive effect of the interaction between a war for talent and layoffs on turnover. Lastly, the results indicate a negative effect on organizational performance in firms pursuing a war for talent is mitigated when investments in employee development are continued during periods of layoffs.
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