Employee turnover is a persistent challenge for organizations, and the stakes grow higher when it occurs collectively within teams or stores. But what happens when external disruptions, like the COVID-19 pandemic, reshape the dynamics of collective turnover? 

A recent study published in the Journal of Applied Psychology and co-authored by Matthew Call, an associate professor at Texas A&M University’s Mays Business School along with Patrick Flynn of North Carolina State University; and Paul Bliese and Anthony Nyberg of the University of South Carolina investigates this question, providing new insights into how external environmental changes influence turnover rates over time and the critical role of internal factors and collective engagement in mitigating these effects.

The Dynamic Nature of Turnover

The research uncovers a distinctive pattern in collective turnover (when multiple employees leave an organization simultaneously). During the pandemic’s initial phase, turnover rates decreased as employees prioritized job security in response to perceived threats. However, rates began to rise as the immediate crisis perception diminished.

This pattern challenges conventional wisdom about employee behavior during crises. Rather than seeing a uniform response throughout the disruption, organizations experience waves of employee retention and departure that correspond to changes in how workers perceive external threats.

Internal Factors Supersede External Conditions

One of the study’s most striking findings is that store-level factors have more influence on turnover than external conditions like local infection rates or government restrictions. Even during the height of the pandemic, internal dynamics — such as team cohesion and management practices — remained the primary drivers of employee retention.

The research demonstrates that while external disruptions can amplify the importance of environmental factors, they never overshadow the fundamental role of internal workplace conditions in shaping turnover decisions.

The Power of Collective Engagement

The study reveals collective engagement as a crucial buffer against turnover during disruptions. Stores where employees felt strongly connected to their teams and committed to shared goals experienced notably lower turnover rates, even amid pandemic uncertainty.

When employees feel part of a cohesive unit, they’re more likely to weather external challenges without seeking alternative employment.

Practical Implications for Organizations

For managers, the research says organizations should prioritize internal factors they can control, such as team dynamics and communication practices, rather than focusing solely on external threats.

The study suggests implementing flexible scheduling, creating open forums for employee concerns, and providing targeted support for vulnerable teams. These approaches help maintain workforce stability by addressing the internal factors that most influence turnover decisions.

While focused on the pandemic, the study’s implications also extend to other external disruptions organizations might face, from economic downturns to natural disasters. The findings suggest that building resilient teams through strong internal practices provides the best defense against turnover during any crisis.

Practical Implications for Retention Strategies

The study’s findings offer actionable insights for managers and organizations looking to retain employees during external disruptions:

1. Focus on Internal Factors: While external conditions may be beyond control, internal factors like team cohesion, leadership quality, and communication remain critical levers for managing turnover.
2. Enhance Collective Engagement: Organizations should invest in initiatives that foster collective engagement, such as team-building activities, recognition programs, and transparent communication. These efforts can help create a sense of belonging and reduce turnover risks.
3. Proactive Retention Initiatives: Managers should adopt proactive strategies during periods of external disruption, including flexible scheduling, open forums for employee concerns, and targeted support for vulnerable teams.
4. Monitor External Dynamics: Understanding how external factors influence employee behavior can help organizations anticipate turnover trends and adjust strategies accordingly.

Building Long-term Resilience

The research emphasizes the importance of taking a long-term view of employee retention. Rather than reacting to each crisis as it occurs, organizations should focus on building enduring engagement and team cohesion that will serve them well regardless of external conditions.

This approach requires consistent investment in practices that foster collective engagement, from regular team-building activities to recognition programs that reinforce shared achievements and goals.