A Two-Staged Longitudinal Model of Collective Turnover on Unit-Level Performance

Abstract

This paper argues that the impact of a turnover event on unit-level performance is manifest in two distinct stages. Drawing on collective turnover and team adaptation theory, we propose that Stage 1 (transition adaptation) is marked by a sudden and negative change in unit-level performance, while stage 2 (acquisition adaptation) is marked by a gradual increase in unit performance toward pre-turnover levels. In addition, we propose a model in which the degree of coordination within the unit negatively moderates the relationship between a turnover event and both stages of adaptation. We test our model on a sample of 567 branches in a U.S. bank. Our results largely support our hypothesis as a turnover event leads to an immediate, negative change in unit-level performance followed by a gradual increase in unit-performance over time. However, unit-level coordination only moderates the rate at which performance improves during the reacquisition phase. Thus, high degrees of coordination slow down recovery. These results highlight the value of the two-staged model and the need to study collective turnover dynamics over time.