Human resources churning dependent on the economy: Society’s impact on institutions?

Abstract

Abstract Purpose: This essay presents the results of a theoretical research using the existing literature on human resource churning within the economic context. The research examines how institutions and society address human resource churning from the economy. To accomplish this, two specific objectives were established: the examination of the key variables impacting churning within the economic context, and the creation and analysis of a theoretical model. The research question that emerged was: “How do institutions and society deal with the occurrence of churning arising from the economic context?” Originality/value: The relevance of this essay rests in its potential to contribute to the existing literature and enhance the advancement of know-ledge in a field that despite its complexity and relevance remains relatively underexplored in the area of human resource management. In this regard, understanding the impact that the economic context plays on the phenomenon of human resource churning is a key aspect for organizations to take mitigation measures. Design/methodology/approach: It follows a theoretical approach by means of a literature review which has allowed the exploration, analysis, deepening and broadening of the existing literature. Findings: Upon analysis of the results, it was found that during periods of economic recession the churning rate is lower compared to periods of economic recovery. As a result, organizations need to adapt their policies to the economic context in order to retain their employees and avoid costs arising from replacements (churning).