Exculpating HR: Applying an Institutional Logics Approach to Employee Quits

Abstract

Many studies examine how human resource (HR) practices influence employee quit rates, implicitly assuming that HR policies and practices are the key determinants of voluntary labour turnover. Although the results of such studies often indicate a weak association between HR policies and practices and higher quit rates, the very assessment of a potential relationship between HR and quits assumes that labour turnover is something that HR can and should fix. The institutional logics perspective provides a powerful lens to examine how different institutional pressures influence managers’ and employees’ decisions and actions Whilst these logics can reinforce one another, they are often in conflict. This complex interaction can provide insights into the variable success of HR practices in different contexts. Based on 54 interviews from Pakistani banking employees, this paper finds that employee perceptions of HR effectiveness only partially explain turnover intentions. The paper contends that competing logics of professionalism, the market, bureaucracy as well as employee’s own logics based on family, societal and cultural imperatives are crucial to understanding HRM effectiveness. Consequently, we argue that mainstream HRM literature typically downplays the importance of institutional logics embedded within local contexts, and, as a result, overlooks how employees may blame HR managers and policies for outcomes which may be beyond their control and remit.