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JOURNAL OF ORGANIZATIONAL PSYCHOLOGY
Customer Satisfaction as a Mediator of the Turnover- Performance Relationship
Author(s): Mahesh Subramony, Brooks C. Holtom
Citation: Mahesh Subramony, Brooks C. Holtom, (2011) "Customer Satisfaction as a Mediator of the Turnover- Performance Relationship" Vol. 11, Iss. 1, pp. 49 - 62
Article Type: Research paper
Publisher: North American Business Press
Abstract:
We developed and tested a model examining the influence of unit-level voluntary and involuntary turnover on critical performance outcomes within a relationship based business context. Utilizing the notion of relational assets, we proposed that voluntary and involuntary turnover levels disrupt the existing stock of relationships with customers thus negatively affecting customers’ satisfaction with the firm, thereby decreasing unit-level financial performance. We tested our hypotheses using longitudinal data related to voluntary and involuntary turnover of full-time staff, customer satisfaction, and financial performance (net operating profits per employee) obtained from 46 regional offices of a temporary help services (THS) firm. Consistent with our predictions, customer satisfaction with the THS firm mediated the relationship between both voluntary and involuntary turnover rates and unit-level financial performance.
