Abandoning Ship? Employee Turnover Intention in Firms on the Decline: A Phenomenological Study

Organizational decline represents a critical stage in the corporate lifecycle that can lead to employee uncertainty, situational discontent, and possible turnover if not intentionally prevented by management. This phenomenological study explores the influence of management teams on employees' perceptions of corporate decline and their decisions to remain with or leave organizations as they progress through the stages of decline. This research, based on 14 qualitative interviews with employees who experienced corporate decline, examines participants' experiences, their perceptions of indicators of decline, the factors that influenced their stay-or-leave decisions, and the managerial strategies that effectively influenced employee retention. The study utilized a mixed-methods approach combining semi-structured qualitative interviews with a quantitative survey of decline indicators. Results indicate that the quality of managerial communication has the most substantial impact on employee retention decisions during organizational decline. While decline indicators trigger employee concerns, the decisive factor in retention appears to be management's response; specifically, honest communication, active listening, and employee inclusion in problem-solving. The findings provide evidence-based strategies for management teams seeking to retain key employees during organizational transitions and contribute to broader discussions on organizational sustainability, workforce management, and leadership effectiveness.