Employers dread the turmoil of turnover, especially when it involves skilled personnel. The pressing question arises: does promoting employees to leadership roles with supervisory responsibilities help to retain them? Drawing on social exchange theory, this analysis anticipates that initially, turnover intentions may decrease among employees due to reciprocal sentiments. However, in the long haul, in accordance with human capital theory, assuming supervisory roles could heighten turnover intentions due to the broadened skill set gained. The crux lies in human resource management (HRM) practices that foster internal career development, countering this long-term turnover risk by providing internal advancement avenues.
In examining employer-employee, a research project by a German University validates both the short-term turnover-reducing and the long-term turnover-increasing impacts of supervisory responsibility. For long-term supervisors, practices like appraisal interviews and development plans emerge as mitigating factors, curbing the intention to quit.
Fluctuation takes a hefty toll on organisations, from productivity dips to knowledge loss. Financially, turnover expenses can soar, often surpassing an employee’s annual salary. Hence, retaining skilled personnel is paramount, particularly amidst talent shortages.
Promoting employees to leadership roles appears a logical step, yet it poses a problem known as the employability paradox. Does enhancing skills inadvertently fuel turnover? This study navigates this terrain, dissecting turnover intentions as a key predictor of actual turnover.
Initially, supervisory roles evoke reciprocity, dampening turnover intentions. However, enhanced skills broaden career prospects over time, amplifying turnover intentions. To address this, HRM practices nurturing internal career progression prove pivotal.
Economically, the research offers practical insights for employers. Short-term retention gains from leadership roles must be coupled with long-term strategies to combat turnover risks. For employees, the lure of enhanced skills must be matched with internal growth opportunities, or else attrition beckons.
Proxying internal career development practices through appraisal interviews and development plans may not capture the full spectrum of opportunities. Further research is required to explore alternative HRM strategies, alongside delving into the causal links between turnover intentions and actual turnover.
Understanding the interplay between leadership roles and turnover intentions is paramount in a talent shortage landscape. By nurturing internal talent, organisations can stem the tide of turnover and secure a steadfast workforce for the future.