Fear of Being Replaced by Robots and Turnover Intention: Evidence from the Chinese Manufacturing Industry

Abstract

As China has become the largest user of industrial robots, the need to understand how workers perceive robot-human substitution and how their perceptions influence their job behaviors is becoming increasingly crucial. This paper examined whether workers’ fear of being replaced by robots (FRR) is correlated with one aspect of job behavior: turnover intention, which refers to the extent to which an individual intends to change their job within a specific time period. Using a dataset covering 1512 manufacturing workers in Guangdong province of China, we found that workers who fear losing their jobs to robots report significantly higher turnover intention. We also found that the positive effect of FRR on turnover intention increased when robots were already utilised in the workplace. This effect was also found to be increase when workers perceived that their wages did not increase with the rise in productivity due to robotisation. Based on these findings, we provide practical recommendations to organizations on effectively addressing the turnover intention arising from the FRR.