High-performer turnover and firm performance: The moderating role of human capital investment and firm reputation

What can Ohio schools learn from South Korean businesses? In a study published in the Journal of Organizational Behavior, Kiwook Kwon and Deborah E. Rupp examine the impact on firms when their high-performing employees leave their jobs.  Specifically, Kwon and Rupp analyze employee and performance data for 155 Korean firms, finding that organizations that invest in extensive selection practices, provide intensive training and development, and implement incentive-based pay suffer less when they lose high-performing employees. The researchers explain that firms focusing on human resources initiatives have staff that is more capable of filling the void left behind when a high-performing employee leaves their organization.

School can potentially learn from the experiences of these firms. Losing a high-performing teacher is difficult for any school. To mitigate the cost of losing a great teacher or administrator, school leaders must think about how to effectively implement human resources initiatives with their staff. As Governor Kasich has proposed a $300 million Straight-A-Fund to incentivize innovation, school leaders should consider applying for grants to develop better processes for hiring new teachers, effectively delivering in-service training, and implementing innovative human resources initiatives. While it will not have the wow factor of a new school building or high-tech equipment, developing a strong workforce can go a long way toward improving a school’s—and its students—chances for success.

SOURCE: Kwon, Kiwook, Deborah E. Rupp. “High-performer turnover and firm performance: The moderating role of human capital investment and firm reputation.”  Journal of Organizational Behavior 34, no. 1 (2013): 129-150.

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