Existing research suggests that the relationship between collective turnover and firm performance is contingent on a number of contextual factors. However, little is known about how the performance effects of collective turnover could vary between family and nonfamily firms. The fundamental difference between family and nonfamily firms in many aspects warrant an investigation. Using a panel data on Korean firms from 2007 to 2017, this study found that family firms experience greater performance loss from collective turnover than nonfamily counterparts. Also, this study showed that the difference in the performance effects of collective turnover between family and nonfamily firms is more salient in the service industry than manufacturing industry and at the lower-level usage of high-involvement work practices. Theoretical contributions to family firm and collective turnover literature are discussed.