Employee development and voluntary turnover: testing the employability paradox

Abstract The employability paradox is a concern among employers. It states that development activities enhancing employees' employability also increase the risk for employee turnover. This study examined this paradox and probed the relationship between six development activities and voluntary turnover mediated by perceived employability. We tested both a turnover‐stimulating path via perceived external employability ( i.e . perceived job alternatives with other employers) and a retention path via perceived internal employability ( i.e . perceived job alternatives with the current employer) by using two‐wave longitudinal data from 588 employees. The results put the turnover risk into perspective: only upward job transition positively influenced turnover via perceived external employability. Also, the retention path via perceived internal employability was not supported: several development activities were positively related with perceived internal employability, but perceived internal employability did not influence turnover. We did, however, find a direct retention effect of skill utilisation. Overall, the results downplay the employability paradox.