The Impact of Geographical Area and Sectors of Activity on the Occurrence of Human Resource Churning

Olga Alexandra Chinita Pirrolas, Pedro Miguel Alves Ribeiro Correia

Abstract


Purpose: Given the relevance of operationalizing the concept of churning in the area of human resources, a concept related to the costs resulting from the replacement of workers who have voluntarily decided to leave the organization, and given that this concept is associated with various contexts, the aim of this literature review was to analyse the influence that geographical location and sectors of activity have on the churning, as well as their influence on society.

Methodology: As far as methodology is concerned, a narrative review was used, as it provides an overview of the topics covered, in order to combine perspectives and synthesise articles that have already been published.

Results: After analysing the literature, it was found that the highest percentage of human resource churning occurs in organisations located in large cities, as there is a greater concentration of population, which is more likely to have to compete with several organisations, increasing the likelihood of churning occurring. As for the sector of activity most susceptible to human resource churning, this is centred on the services sector, which is due to this particular sector being mostly located in large cities. In view of the above, it can be predicted that the sectors of activity are implemented by geographical area, given the volume of population, the existing labour force and the available resources, which have a different impact on the rate of human resource churning.

Research limitations: The scarcity of relevant literature on the subject, as well as empirical studies. Another limitation is that an empirical methodology was not chosen, through which it would have been possible to analyse the relationship between different variables, formulate hypotheses and test their veracity, which would certainly have contributed to a more robust enrichment of the literature.

Originality: Addressing the issue of human resource churning, a multifaceted concept that is still little applied and developed by organisations in terms of human resources. It is therefore pertinent to discuss its occurrence at various levels and in various contexts, in this review specifically in terms of geographical location and sectors of activity, thus emphasising the need for organisations to take measures to optimise human resources and minimise unnecessary costs with human resource replacements resulting from voluntary departures.

Keywords: Churning; Human Resources; Geographical Area; Sector of Activity; Replacements.

 

DOIhttps://doi.org/10.58869/EJABM10(1)/03


Full Text:

PDF

References


Alfaro, L. & Chen, X. M. (2014). The global agglomeration of multinational firms. Journal of International Economics, 94(2), 263 - 276. https://doi.org/10.1016/j.jinteco.2014.09.001

Artz, G.; Eathington, L.; Francois, J.; Masinde, M. & Orazen, P. (2020). Churning in Rural and Urban Retail Markets. The Review of Regional Studies, 50, 110-126.

Bardin, L. (2020). Análise de conteúdo. Edições 70.

Biderman, L. (2015). The Geographic Dynamics of Industry Employment in Brasiliam Metropolitan Areas: lessons for São Paulo. Braziliam Journal of Political Economy, 35(3), 492-509.

Bratti, M. & Leombruni, R. (2014). Local human capital externalities and wages at the firm level: Evidence from Italian manufacturing. Economics of Education Review, 41, 161–175.

Burgess, S.; Lane, J.& Stevens, D. (2000). Job Flows, Worker Flows, and Churning. Journal of Labor Economics, 18, 473-502. https://doi.org/10.1086/209967

Burgess, S.; Lane, J. & Stevens, D. (2001). Churning Dynamics: an analysis of hires and separations at the employer level. Journal of Labour Economics, 8, 1-14. https://doi.org/10.1016/S0927-5371(00)00027-0

Cappelli, P. & Neumark, D. (2004). External Churning and Internal Flexibility: Evidence on the functional flexibility and core-periphery hypotheses. Industrial Relations, 43(1), 148-182. https://doi.org/10.1111/j.0019-8676.2004-00322

Chaumier, J. (1988). Le traittement linguistique de l’information. Enterprise moderne d’Edition, 3ª ed.

Chaumier, J. (1989). Les techniques documentaires, 5ª ed.

Coffey, W. & Polese, M. (1984). Local Development Conceptual Bases and Policy Implications. Regional Studies, 19.

Combes, P. P. & Gobillon, L. (2015). The empirics of agglomeration economies. In G. Duranton, V.; Henderson, W. Strange (Eds.), Handbook of urban and regional economics, 5, 247–348).

Debaere, P.; Lee, J. & Paik, M. (2010). Agglomeration, backward and forward linkages: Evidence from South Korean investment in China. Canadian Journal of Economics, 43(2), 520–546. https://doi.org/10.1111/j.1540-5982.2010.01582.x

Doeringer, P. & Piore, M. (1971). Internal Labor Markets and Manpower Analysis. Lexington, MA: Heath Lexington Books.

Dolatabadi, S. & Keynia, F. (2017). Designing of Customer and Employee Churn Prediction Model Based on Data Mining Method and Neural Predictor. The 2nd International Conference on Computer and Communication Systems, Krakow, Poland, 1-4. https://doi.org/10.1109/CCOMS.2017.8075270

Driffield, N. & Munday, M. (2000). Industrial performance, agglomeration, and foreign manufacturing investment in the UK. Journal of International Business Studies, 31(1), 21–37. https://doi.org/10.1057/palgrave.jibs.8490897

Fielder, M. & Moor, K. (2017). Users on the move: On relationships between QoE ratings, data volumes and intentions to churn. IEEE, 42nd Conference on local Computer Networks Workshops, 1-7. https://doi.org/10.1109/LCN.Workshops.2017.70

Findeisen, S. & Sudekum, J. (2008). Industry Churning and the Evolution of Cities: evidence for germany. Journal of Urban Economics, 64, 326-339.

Flórez, L.; Morales, L.; Medina, D. & Lobo, J. (2017). Labour flows across firm´s size, economic sectors and wages in Colombia: evidence from employer-employee linked panel. Borradores de Economía, 1013.

Foster, L.; Grim, C. & Haltiwanger, J. (2016). Reallocation in the Great Recession: cleansing or not? Journal of Labor Economics, 34(1), 293-331.

Grimshaw, D. & Rubery, J. (1998). Integrating the internal and external labour markets. Cambridge Journal of Economics, 22(2), 199–220.

Hancock, J. I.; Allen, D. G.; Bosco, F. A.; McDaniel, K. R. & Pierce, C. A. (2013). Meta‐analytic review of employee turnover as a predictor of firm performance. Journal of Management, 39(3), 573–603.

Heavey, A. L.; Holwerda, J. A. & Hausknecht, J. P. (2013). Causes and consequences of collective turnover: A meta‐analytic review. Journal of Applied Psychology, 98(3), 412–453.

Henderson, J. (1983). Industrial Bases and City Sizes. American Economic Review, 73, 164-9.

Henderson, J. (1988). Urban Development: Fact. Theory and Illusion. New York: Oxford University Press.

Hoover. E. (1948). The Location of Economic Activity, New York: McGraw-Hill.

Isard, W. (1956). Location and Space Economy, Cambridge, MA: MIT Press.

Jacobs, J. (1969). The economy of cities. London: Jonathan Cape.

Johannisson, B. (1990). Organizing for local economic development- on firm and context dynamics, 30 European conference of the RSA Istanbul, 28-31 August.

Kamalaveni, M.; Ramesh, S. & Vetrivel, T. (2019). A Review of Literature on Employee Retention. International Journal of Innovative Research in Management Studies (IJIRMS), 4, 1–10.

Kaye, B. & Evans, S. (2001). Retaining key employees. Public Management, 1, 6-11.

Kerr, A. (2018). Job Flows, Worker Flows and Churning in South Africa. South African Journal of Economics, 86, 141–66. https://doi.org/10.1111/saje.12168

Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy, 99, 483–99.

Lavoratori,K.; Mariotti, S. & Piscitello, L. (2020). The role of geographical and temporary proximity in MNEs’location and intra-firm co-location choices. Regional Studies, 54(10), 1442–1456. https://doi.org/10.1080/00343404.2020.1732901

Lazear, E. & Spletzer J. (2012). Hiring, Churn, and the Business Cycle. American Economic Review, 102(3), 575–579.

Maillat, D. (1988). PME, Innovations et development territorial. IRER, Cahier, 18.

Moomaw, R. (1988). Agglomeration Economies: Localization or Urbanization? Urban Studies, 25.

Moreira, G.; Oliveira, M.; Lopes, A. & Pantoja, M. (2018). Concepção de Suporte Organizacional e Intenção de Rotatividade com Base na Literatura. Sociedade e Cultura, 21(1), 219-231. https://doi.org/10.5216/sec.v21i1.54932

Moulaert. F. & Djellal, F. (1990). Les conseils en technologic de I'informatioti: des Economies d'agglomeration en roseau. Conference 'Metropoles en Desequilibre?, Lyons.

Moulaert, F. & Martinelli, F. (1992). Le conseil en technologie de I'information et la technologie du conseil, in J. Gadrey (ed.). Manager le conseil

Moulaert, F. & Gallouj, C. (1993). The locational geography of advanced producer service firms: the limits of economies of agglomeration. Service Industries Journal.

Myrdal, G. (1947). Economic Theory and Underdeveloped Regions. London: Duckworth.

Orellano, V.; Mattos & Pazello, E. (2009). A Substituição de Trabalhadores como Instrumentos para Redução de Gastos com Salários: evidências para a indústria paulista. Revista Brasileira de Economia, 63(2), 135-152.

Osterman, P. (2011). Institutional labor economics, the new personnel economics, and internal labor markets: a reconsideration. ILR Review, 64(4), 637–653.

Paul, J. & Criado, A. (2020). The art of writing literature review: What do we know and what do we need to know? International Business Review, 29, 1-7. https://doi.org/10.1016/j.ibusrev.2020.101717

Peequeur, B, (1989). Le development local. Paris: Syros.

Pirrolas, O. & Correia, P. (2021a). The Theoretical-Conceptual Model of Churning in Human Resources: The importance of its operationalization. Sustainability, 13, 4770.

Pirrolas, O. & Correia, P. (2021b). Churning de Recursos Humanos: causas e estratégias de atenuação. Revista Lex Humana. 13(1), 165-181.

Pirrolas, O. & Correia, P. (2022a). Literature Review on Human Resource Churning—Theoretical Framework, Costs and Proposed Solutions. Social Sciences, 11: 489 https://doi.org/10.3390/socsci11100489

Pirrolas, O. & Correia, P. (2022b). Churning de recursos humanos: setor privado versus setor público. Revista de Gestão dos Países de Língua Portuguesa, 21(3), 163–182

https://doi.org/10.12660/rgplp.v21n3.2022.85188

Pirrolas, O. & Correia, P. (2023). Human Resources Churning. Encyclopedia, 3, 582–589 https://doi.org/10.3390/encyclopedia3020041

Pirrolas, O. & Correia, P. Human Resources Churning Dependent on the Economy: society's impact on institutions? Revista de Administração Mackenzie – RAM (In Prelo), 25(5).

Reynolds, L. (1951). The Structure of Labour Markets. New York: Harper and Brothers.

Saradhi, V. & Palshikar, G. (2010). Employee Churn Prediction. Expert Systems whith Applications, 38(3), 1999-2006. https://doi.org/10.1016/j.eswa.2010.07.134

Schumpeter, J. (1976). Capitalism, Socialism and Democracy. 5ª edição. George Allen & Unwin (Publishers) LDA.

Singer, E. & Ramsden, J. (1972). Human resources: obtaining results from people at work. London: McGraw-Hill.

Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039

Tobler, W. (1963). Geographic Area and Map Projections. Geographical Review, 53(1), 59-78.

Torre, E.; Zatzick, C.; Sikora, D. & Solari, L. (2017). Workforce Churning, Human Capital Disruption, and Organisational Performance in Different Technological Contexts. Human Resource Management Journal, 28, 112-127. https://doi.org/10.1111/1748-8583.12167

Weber, A. (1929). Theory of the Location of Industry, Chicago: University of Chicago Press.

Williamson, O.; Wachter, M. & Harris, J. (1975). Understanding the employment relation: the analysis of idiosyncratic exchange. The Bell Journal of Economics, 6(1), 250–278.

Zhao, D.; Li, J.; Tan, Y.; Yang, K.; Ge, B. & Dou, Y. (2018). Optimization Adjustment of Human Resources Based on Dynamic Heterogeneous Network. Physica A, 503, 45-57. https://doi.org/10.1016/j.physa.2018.02.168




Copyright (c) 2024 European Journal of Applied Business and Management

 

European Journal of Applied Business and Management

ISSN: 2183-5594

DOI: https://doi.org/10.58869/EJABM

Indexing:

EBSCO | CROSSREF | GOOGLE SCHOLAR | LATINDEX | DRJI | ICI JOURNALS MASTER | REDIB | MIAR