Productivity of employees in the aftermath of colleague turnover : evidence from a Chinese manufacturing company

Abstract

 This dissertation investigates the impact of colleague turnover on employee productivity within Chinese manufacturing enterprises, focusing specifically on a case study of Ji Kai Co., Ltd. It delves into the interrelation between personnel efficiency and turnover, offering fresh insights into their influence on the competitiveness and sustainability of the manufacturing sector. As a pivotal contributor to global economic expansion, China's manufacturing industry confronts the challenge of sustaining high personnel efficiency amidst escalating labor costs and swift technological evolution. This study highlights the critical understanding of employee productivity in the context of colleague turnover—a prevalent phenomenon with significant implications for organizational performance and morale. Utilizing a comprehensive dataset from Ji Kai Co., Ltd., a leader in the mining equipment manufacturing industry, the research examines the complex effects of turnover on the productivity of remaining employees, emphasizing the essential role of human resource management in maintaining enterprise competitiveness. Employing a mixed-methods approach, this study analyzes 57 months of panel data from Ji Kai Co., Ltd., including piece-rate wages and other productivity metrics for 317 workers, augmented by qualitative insights from factory observations and interviews with both managerial and frontline personnel. It meticulously evaluates workplace productivity in relation to team member turnover, the resilience of employees to uncertainty, and their experience with previous colleague resignations, while controlling for a range of individual and organizational variables. The findings confirm that team member turnover negatively affects the productivity of remaining employees, supporting Hypothesis 1. However, it also identifies the mitigating effects of employees' resilience to uncertainty (Hypothesis 2) and their prior turnover experiences (Hypothesis 3) on the negative impacts of coworker turnover. Notably, prior experiences of colleague turnover are shown to bolster employees' resilience to uncertainty, further diminishing the adverse effects of current peer turnover on productivity (Hypothesis 4). These results reveal the intricate dynamics between employee turnover, individual resilience, and organizational performance, illustrating how resilience and experiential learning can buffer against turnover's detrimental effects. The study underscores the importance of enhancing employees' resilience and capitalizing on experiential learning from past turnover incidents as strategic measures to counteract turnover's negative repercussions on productivity. It also highlights the critical role of comprehensive management practices focused on employee development, engagement, and well-being in navigating turnover challenges, advocating for strategic human resource management practices that address both the immediate and long-term impacts of turnover while fostering a resilient, capable workforce. This dissertation contributes valuable perspectives on the relationship between employee turnover and productivity in the Chinese manufacturing sector, offering significant implications for both academic inquiry and managerial practice. By elucidating factors that mitigate turnover's negative effects, it provides a strategic framework for manufacturing enterprises seeking to bolster their competitiveness and sustainability amid the complexities of the global market.