The Dark Side of Wars for Talent and Layoffs: Evidence from Korean Firms †
AbstractIn this study, we examined the effects of layoffs and wars for talent on firms’ performance. The simultaneous use of layoffs and “war-for-talent” practices has become part of the management strategy for adjusting workforce competencies. We suggest that war-for-talent practices decrease organizational performance when laying people off at the same time. Moreover, we argue that investment in employees’ skill development during the same period as layoffs and a war for talent can enhance organizational sustainability in increasing employee commitment, trust and organizational flexibility. Using a longitudinal survey conducted at over 653 Korean firms by a government-sponsored research institution, the results show that war-for-talent practices do not have a significant impact on firms’ performance. Moreover, our findings indicate a negative relationship between war-for-talent practices and financial performance when conducting layoffs and, as expected, a positive effect of the interaction between a war for talent and layoffs on turnover. Lastly, the results indicate a negative effect on organizational performance in firms pursuing a war for talent is mitigated when investments in employee development are continued during periods of layoffs. View Full-Text
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Cho, H.-J.; Ahn, J.-Y. The Dark Side of Wars for Talent and Layoffs: Evidence from Korean Firms †. Sustainability 2018, 10, 1365.
Cho H-J, Ahn J-Y. The Dark Side of Wars for Talent and Layoffs: Evidence from Korean Firms †. Sustainability. 2018; 10(5):1365.Chicago/Turabian Style
Cho, Hee-jung; Ahn, Ji-Young. 2018. "The Dark Side of Wars for Talent and Layoffs: Evidence from Korean Firms †." Sustainability 10, no. 5: 1365.
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