  Unexpected events -- "shocks" -- are the motive force in explaining changes
in embeddedness and retention within the unfolding model of labor turnover.
Substantial research effort has examined strategies for insulating valued
employees from adverse shocks. However, this paper provides empirical evidence
that unambiguously negative shocks can increase employee retention when
underlying firm and employee incentives with respect to these shocks are
aligned. Using survival analysis on a unique data set of 466,236 communication
records and 45,873 employment spells from 21 trucking companies, we show how
equipment-related shocks tend to increase the duration of employment. Equipment
shocks also generate paradoxically positive sentiments that demonstrate an
increase in employees' affective commitment to the firm. Our results highlight
the important moderating role aligned incentives have in how shocks ultimately
translate into retention. Shared hardships strengthen bonds in employment as in
other areas.
