Speaker(s): Zeynep Ton & Rob Huckman
Title:
Abstract
Labor turnover has been identified as a source of concern
for firms in many settings. In environments such as retail, call centers,
hospitals, and food services, high levels of labor turnover present potential
operational challenges for managers. We examine the effect of turnover on the
performance of routine tasks in a retail store setting. Consistent with Nelson
and Winter (1982), we define a task as "routine" when it is preformed
in a regular and predictable manner. This definition encompasses a wide range of
activities not only within retail environments, but also within other
manufacturing and service environments. Using monthly data from 268 stores of a
large retail chain, our preliminary analysis shows that employee turnover has a
negative impact on the performance of two routine tasks-shelving merchandise and
processing returns. We also consider the degree to which this average effect is
moderated by characteristics of individual stores.