Events

Ms. Hyesook Chung
Ph.D. Candidate in Human Resource Studies
Cornell University

The use of variable work schedules – altering the numbers and timing of employees’ work hours from week to week – is one of the widely used HR practices to increase staffing flexibility. However, little research has examined whether and how the use of variable work schedules influences unit-level financial performance. Despite the common assumption that the use of variable work schedules can help firms achieve higher performance (by allowing for timely response to demand fluctuations), especially during a crisis such as COVID-19, this study demonstrates otherwise. I propose that greater use of variable schedules can lead to higher employee turnover at the unit level and the effect is stronger during the pandemic. I also argue that managerial reliance on variable work schedules can decrease not only the level of unit performance but also its recovery during the pandemic via employee turnover. Using data from 1,678 units of a quick service restaurant chain in the US across periods spanning different phases of the COVID-19 pandemic, I find support for these predictions. The findings suggest that scholars and practitioners should reconsider the general assumption that organizations are better able to adapt to uncertain environments through staffing flexibility.