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경영대학
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The dark side of wars for talent and layoffs: Evidence from Korean firms
Title
The dark side of wars for talent and layoffs: Evidence from Korean firms
Authors
Cho H.
;
Ahn J.-Y.
Ewha Authors
안지영
;
조희정
SCOPUS Author ID
안지영
; 조희정
Issue Date
2018
Journal Title
Sustainability (Switzerland)
ISSN
2071-1050
Citation
Sustainability (Switzerland) vol. 10, no. 5
Keywords
Employee development
;
Firm performance
;
Human resources
;
Layoffs
;
War for talent
Publisher
MDPI AG
Indexed
SCIE; SSCI; SCOPUS
Document Type
Article
Abstract
In 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 offat 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. © 2018 by the authors.
DOI
10.3390/su10051365
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