Do innovative work practices reduce labour turnover?
1999/2000 A new study has found only moderate support for the notion that innovative work practices, such as teamwork, job rotation and profit-sharing, reduce employee turnover. For instance, the report found almost no evidence that such innovative work practices reduce employee turnover in the manufacturing sector. Workplaces using innovative work practices were no more successful than others in retaining their employees. On the other hand, establishments in the services sector that employed a highly skilled workforce, and used some innovative work practices, did retain a greater proportion of their employees than others. These establishments included, among others, those operating in telecommunications, finance, insurance, and professional, scientific and technical services. In 1999, those which had teamwork and profit-sharing plans lost about 4% of their employees through resignations. In contrast, those with no innovative work practices lost a much greater proportion of their emplo