Trulaske researcher explores how hard times hit human capital investments

Joonyoung Kim understands the challenges of guiding organizations through economic downturns. Navigating lean times often demands tough decisions. But should investments in human capital be among them? Kim, now an assistant professor of management at the University of Missouri’s Robert J. Trulaske, Sr. College of Business, set out to answer that question. His co-authored paper, “Turning the Tide: The Impact of Performance Decline on Human Capital Investment” earned him the 2025 Best Convention Paper Award from the Human Resources Division of the Academy of Management and will be recognized at the HR Division Awards Ceremony in Copenhagen.

What was the purpose of your study?
My co-author (Professor Rebecca Kehoe at Cornell University) and I wanted to understand how firms respond when their performance takes a hit, specifically, how they handle investments in their workforce during tough times. While there’s a lot of research showing that firms tend to invest more in employees when they’re doing well, we know much less about what happens when things go south. Our study looked at whether firms cut back on human capital investment (HCI) during downturns, and what factors influence that decision.

What did you uncover?
We found that firms generally do reduce HCI when performance declines, especially when the decline is steep. But not all firms behave the same. Companies in more dynamic or resource-rich industries, those pursuing people-intensive strategies, or those that have been steadily increasing workforce investments in recent years are less likely to make cuts. So, context really matters.

Why is this research particularly relevant now?
Uncertainty has become the new normal for many firms. Whether it’s tech disruptions, supply chain issues, or other challenges, these pressures can hit performance in unexpected ways. That makes decisions about where to cut (and where to keep investing) even more important. Our study helps make sense of those tough calls and offers a framework for thinking them through.

What sets this study apart from prior research?
We took ideas from a classic theory, Behavioral Theory of the Firm, and applied them to human capital strategy, something that hasn’t been done much before. Rather than viewing HCI as a fixed practice, we treated it as a dynamic resource allocation decision that shifts in response to performance signals. We also highlighted key factors, such as industry conditions, strategy, and prior investment patterns, that shape how firms react to downturns.

Which audiences might find this research particularly valuable?
This work is relevant to scholars in strategic human resources management (SHRM) and resource management, but also to business leaders, HR executives, and policymakers who are thinking about workforce planning and talent strategy in uncertain times.

What are the actionable takeaways?
The big takeaway is that cutting HCI isn’t always the smartest move when performance declines. If your firm depends on talent to compete — or operates in an industry where conditions are rapidly changing and human capital is critical for seizing external opportunities — it may be wiser to preserve or even increase workforce investments to position for recovery. For policymakers, supporting struggling firms through targeted programs, such as reskilling initiatives or training subsidies, can also make a meaningful difference.

What inspired you to pursue this research?
Before academia, I worked as an HR consultant and saw how firms navigated hard times. Some immediately cut training and compensation; others took a longer-term view and leaned into their workforce. That contrast stuck with me, and this project was my way of making sense of those different choices.

What did it mean to you to win this award?
It was incredibly meaningful. Awards like this validate the importance of asking tough questions — like how firms make people decisions when money is tight. I’m grateful to the selection committee and thrilled that this work is resonating with others.

How did Trulaske empower you to win this award?
Mizzou has been an incredibly supportive environment for conducting research. Before submitting this work to the Academy of Management Annual Meeting (which recognized it with this award) I presented it to my colleagues in the management department. They offered generous feedback and encouragement, and I made significant revisions based on their input before the submission. Trulaske also places a strong emphasis on producing high-impact work that bridges theory and practice, and that support has made all the difference.

Is there anything else you’d like to share?
Just a quick thanks to everyone who helped along the way—co-authors, mentors, colleagues. This project grew out of lots of great conversations, and I’m excited to keep building on it.

Mizzou’s Robert J. Trulaske, Sr. College of Business prepares students for success as global citizens, business leaders, scholars, innovators and entrepreneurs by providing access to transformative technologies, offering experience-centered learning opportunities and fostering an entrepreneurial mindset.