Sure Everyone Can Be Replaced … But At What Cost? Turnover As A Predictor Of Unit-Level Performance

TLDR

Turnover research typically treats employee turnover as the outcome variable and seeks its antecedents. This study treats turnover as a predictor of unit-level performance. A structural model linking managerial and employee turnover to performance via efficiency was tested on 262 Burger King restaurants. Customer wait time mediates the effects of management and crew turnover on sales and profit, whereas food waste does not.

Abstract

Most turnover research positions employee turnover as the dependent variable and focuses on identifying its antecedents. In this study, we viewed turnover as a key predictor in determining unit-level performance. Specifically, a structural model was developed and tested that links managerial and employee turnover with performance through efficiency. We tested the model using a sample of 262 BURGER KING® restaurants. Results demonstrate that efficiency, measured as customer "wait time," mediates the relationships of both management and crew turnover to both sales and profit, and efficiency, measured as food waste, does not mediate the relationship of turnover to sales or profit.