Career adaptability, turnover and loyalty during organizational downsizing

Abstract

During organizational restructuring and downsizing, employees often worry about being redundant, actually are redundant, and/or feel unsatisfied with their jobs. Employees, in turn, often react with poor loyalty to and high voluntary exit from the organization. The current study addresses this process from a careers' perspective, showing that career adaptability in the form of employees' career exploration and planning can account for at least some of these relationships. Redundancy fostered employees' career adaptive behaviors while job insecurity inhibited their career planning. Career planning, in turn, positively predicted employees' loyalty to the organization five months later while career exploration negatively predicted employees' loyalty, and positively predicted employees' exit reactions in the form of turnover intentions, job-search behaviors, and actual turnover. Implications and directions for future research are discussed.