“Is There Something More Important Than a Paycheck?” ... What a Study Found About New-Hire Turnover

[Financial News] A study has found that giving new employees with no work experience excessive autonomy and responsibility may actually lead to higher turnover. Allowing employees to make their own decisions and take on a range of tasks may become a burden for those who have not yet adapted to the organization.
According to the Korea Research Institute for Vocational Education and Training (KRIVET) on the 10th, Professor Noh Yong-jin of Seoul National University of Science and Technology (SeoulTech) presented a report titled “Human Relations Management and New Employee Turnover” at an academic conference last month. The report analyzed the relationship between new employees’ adjustment to organizations and turnover.
Using data from the 2020–2023 Human Capital Corporate Panel (HCCP) collected by KRIVET, Professor Noh analyzed how companies’ approaches to human relations management and their work environments were related to turnover among new employees with no prior work experience.
The study used 1,479 company samples collected over four years. The researchers compared new-employee turnover rates with responses on team-work characteristics, relationships among employees, work practices, and coaching and mentoring, and conducted a regression analysis.
The analysis found that turnover among new employees with no prior work experience was lower at companies that fostered a close, family-like atmosphere and valued harmony and a sense of unity among employees. The regression coefficient for this relationship-oriented organizational culture was -3.403, indicating a statistically significant negative relationship.
By contrast, turnover was higher in environments where new employees actively participated in problem-solving and decision-making, took on a range of tasks and responsibilities, and were given considerable autonomy.
The regression coefficient for this task-oriented work style was 4.914. The analysis suggests that an environment in which employees are expected to take the initiative may instead be a burden for new hires with little experience.
The regression coefficients for wage levels and weekly working hours were -0.048 and -0.271, respectively. Coaching and mentoring for new employees also showed a negative relationship with turnover, with a regression coefficient of -1.382.
However, because the variables were measured in different units, it is difficult to directly compare the size of their regression coefficients to determine which factors have a greater effect on turnover.
Professor Noh said, “For MZ-generation new employees, who have had few opportunities to experience direct interpersonal relationships because of family structures with few siblings and the spread of the internet, adjusting to an organization can be a major challenge,” and analyzed: “Human relations management that supports their adjustment could help reduce turnover among new employees.”
[email protected] Han Seung-gon Reporter