‘Work performance method’ increases the turnover rate of new employees… It has a bigger impact than wages

Analysis results showed that a team work method that allows new employees to actively participate in work performance and grants them autonomy can also work in the direction of increasing the possibility of turnover.

Some analyzes suggest that supporting the adaptation of new employees who are unfamiliar with this type of task may be a way to prevent early job change.

According to the Korea Research Institute for Vocational Education and Training (KRIVET) on the 9th, Professor Noh Yong-jin of Seoul National University of Science and Technology presented a report titled 'Human Relationship Management and New Employee Turnover Rate', which studied this topic, at an academic conference held last month.

Professor Noh used the Korea Research Institute for Vocational Education's Human Capital Corporate Panel (HCCP) data from 2020 to 2023 to empirically analyze how human relationship management affects the turnover rate of new employees with no experience.

A regression analysis was conducted on the relationship between responses to questions related to team work attributes, interpersonal elements, task elements, coaching and mentoring, and turnover rate in a total sample of 1,479 companies over four years.

As a result of the analysis, relationship-oriented organizational culture such as 'creating a family-like organizational atmosphere' and 'emphasizing unity and unity' was found to be a factor that significantly lowers the turnover rate of new employees without experience, with a regression coefficient of -3.403.

On the other hand, in team work, the regression coefficient for 'organization members actively participate in problem solving and decision-making', 'can gain diverse experience by taking on various tasks and responsibilities within the organization', and 'sufficient autonomy to perform work proactively' was found to be 4.914. The stronger the task factor, the higher the turnover rate.

What is noteworthy is that these relationship and characteristic factors were found to have a greater impact than major working conditions such as wage level (-0.048) or weekly working hours (-0.271).

Coaching and mentoring also appeared to be a factor in lowering turnover at a weak level (-1.382).

Professor Noh diagnosed that the research results suggest that in order to reduce the early turnover of new employees, it is necessary to look at not only working conditions such as wages, but also whether new employees adapt to the organizational culture and work performance methods.

Although early job change can be seen as an inevitable process for young people to find jobs and conditions that suit them, there is also an aspect of job maladjustment that plays a role.

In addition, Professor Noh analyzed, “The impact of human relationship management on turnover rate was stronger for inexperienced people than for experienced people,” and “It is possible that the lack of job experience is involved in maladaptation or turnover in human relationships.”

He analyzed, “The process of adapting to the organization can be a big task for new employees of the MZ generation, who do not have many opportunities to experience direct interpersonal relationships due to the family structure of not having many brothers and sisters and the spread of the Internet,” and added, “Human relationship management that supports adaptation can contribute to lowering the turnover rate of new employees.”