Mass lay-offs tremendously impact employees and companies. Helping people toward new employment could help organizations manage costs and reputation. The authors sought to test a model, based on regulatory focus theory, predicting which employees are more likely to consider leaving the company during this uncertain time (turnover intentions) and indirectly to engage in behavior to strengthen their external labor market position (mobility-oriented behavior).
With a mass lay-off impending, the authors studied employees (N = 326) in a financial services organization. The authors reasoned that employees' perception that they have higher (vs lower) qualifications than their job requires, may be able to spur turnover intentions for some because it enhances perception that movement to another job is desirable and feasible. The authors proposed perceptions of being overqualified vs perceptions of being underqualified only affect the turnover intentions and mobility-oriented behavior of promotion-focused employees.
Supporting the expectations, promotion-focused employees (but not prevention-focused employees) who perceived themselves to be overqualified, compared with promotion-focused employees who perceived themselves to be underqualified, showed higher turnover intentions and, indirectly, mobility-oriented behavior.
This research is one of few studies that have examined intentions and behavior of employees who are facing impending mass lay-off, as most lay-off research has studied survivors or victims post lay-off. To the best of the authors’ knowledge, this is the first study to apply a regulatory focus perspective on overqualification/underqualification, as well as to turnover intention and mobility behavior.
