16th International Conference on Human Resource Development Research
and Practice across Europe
3-5 of June, 2015, Cork, Ireland
To be or not to be a Trainee, does it matter for Talent Retention?
Authors:
Francisco Santos Cesário[1], Assistant Professor Universidade Europeia, Lisbon
Maria José Chambel, Associate Professor, Lisbon University, Faculty of Psychology
Abstract
The purpose of this study is to explore the relationships between perceptions of Human Resources Practices, Affective Commitment and Turnover Intentionwithin two groups of graduates employees recruited with different methodologies – Trainees and Not Trainees. With the support of a Portuguese leader organization that runs annually a Trainee Program to attract best graduate from top universities, data were collected from 186 graduates representing the two groups. Company express at the beginning of the study that would expect that former Trainees graduates would present higher levels of commitment and lower intentions to voluntary leave the organization. However results show no significant differences between the groups.
Keywords
Trainees programs, human resources practices, affective commitment , turnover intention
One of the most strategic factors facing top-performing companies is their capability to attract and retain high talent resources, high skilled workforce with high levels of organizational commitment. Talent management is a critical requirement not only for business needs but also for individuals who aim for career success and employability climate.
Despite thecurrent Europeaneconomic and labor market recession, companies are still fighting for the recruitment of young talented people introducing innovative programs to attract high potential ones mainly at the step doors of Universities. Companies using specific talent management practices for this group –the Trainees - would expect that selecting, developing and rewarding them in a differentiated approachfrom the “other employees” could be more competitive on talent retention and organizational commitment (Allen, Shore & Griffeth, 2003; Nishii, Lepak & Schneider, 2008).
In this perspective this study aimsto understand if investments made by organizationshave a return in employees’ attitudes. With the collaboration of a market leader Portuguese Telecom company that for 10 years is running an annual Trainee Program to attract best graduates from top Portuguese universities. Every year about 80 participants are included in this program with a total duration of 24 months. The program includes formal training, especially on soft skills, participation on outdoor activities, individual coaching and job rotation experience among internal departments. At the end individual evaluation is conducted byHR Department and those who succeed are invited to be employed with a formal working contract. Company would expect that the former trainee graduates when comparedwith other graduates recruited by standard procedures would develop a stronger affective organizational commitment. For purpose of this study conducted during 2012, HR Department identified both groups of graduates recruited between 2005 and 2008.An email was sent to 225graduates and we obtained data from 168 participants(84 Trainees and 84 Not-Trainees). The questionnaire included was composed of three scales, in order to analyzed the relationship between perceivedHuman Resources Management practices (HRM)- recruitment and hosting; training; and performance appraisal – and employees’ Affective Commitment (AC) and Turnover Intentions (TI). Perceptions about HR practices were analyzed with a questionnaire based upon the theory described in strategic human resources management (Boselie, Dietz & Boon, 2005), Afective Commitment with a Portuguese adaptation (Nascimento, Lopes & Salgueiro, 2008) of the Allen and Meyer (1997) three-component model.To measure Turnover Intention, Bozeman & Perrewé (2001) questionnaire was used. First, we started to analyze possible relations between all variables for the total sample.
Results (Table 1) shows a significant positive association betweenperceived HRM practices and AC (recruitment & hosting,r=.281**; training,based on r=.461**; performance appraisal, r=.284**) and negativerelation with TI(recruitment & hosting, r= - .352*; training, r= -474**, and performance appraisal, r=-.233**) which suggest that a high perception about the value of HR practices leads to a reinforcement of employment relation and a decrease on desire to voluntary leave.
Table 1. Descriptive statistics and correlations for all variables (total sample)
Variables / Mean / SD / 1 / 2 / 3 / 4 / 5 / 61.Academic Qualifications / 2.96 / 0.95
2.Tenure / 4.17 / 1.28 / -0.02
3.Recruitment & Hosting / 2.63 / 0.47 / -0.07 / -0.12
4.Training / 2.74 / 0.69 / -0.18* / 0.35**
5.Performance Appraisal / 2.84 / 0.69 / 0.06 / -0.9 / 0.35** / 0.40**
6.Affective Commitment / 5.30 / 1.14 / -0.23** / 0.04 / 0.28** / 0.46** / 0.28**
7.Turnover Intentions / 2.91 / 1.44 / 0.33** / 0.08 / -0.35** / -0.47** / -0.23** / -0.49**
Descriptive statistics with the comparison between the two groups (Table 2) shows however a slight lower rate for affective commitment of Trainees (M=4.08; SD=.87) compared with Not-Trainees (M=4.14; SD=.90) and the opposite for intentions to leave (Trainees, M= 2.54 SD.08; Not-Trainees, M=2,24 SD 1.28).
Table 2. Descriptive statistics between Groups
Variables / Did you participate in the Trainee Program? / Mean / SD / T test / P valueRecruitment & Hosting / Yes
No / 2.63
2.63 / 0.41
0.52 / .02 / .98
Training / Yes
No / 2.81
2.67 / 0.69
0.68 / 1.34 / .18
Performance Appraisal / Yes
No / 2.94
2.74 / 0.63
0.72 / 1.82 / .07
Affective Commitment / Yes
No / 4.08
4.14 / 0.87
0.90 / -.43 / .67
Turnover Intentions / Yes
No / 2.54
2.24 / 0.63
1.28 / 1.63 / .11
However T-Tests indicate the inexistence of significant differences between Trainees and Not-Trainees for affective commitment (t= -0.43, p= 0.67) and turnover intentions (t=1.63, p= 0.11).
In order to further investigate which of the considered HRM practices makes contribution to the prediction of affective commitment and turnover intentions a hierarchical multiple regression analysis was conducted. Results (Table 3) showa direct significant effect of Training on Affective Commitment and Turnover Intentions and of Recruitment and Hosting only on Turnover Intentions. The importance of Training is well highlighted and this is quite relevant for organizations policies design. Both groups of employees attributed greater importance to the fact that when organizational investment in training is perceived it has positive impact on the desire to stay in the organization, since training was positively related to affective commitment and negatively to turnover intentions. Their desire to maintain organizational attachment maybe a response to a perceived value of organizational practicesand encourages job satisfaction, lower absenteeism, organizational citizenship behaviors and job performance (Chambel & Sobral, 2011; Mathieu & Zajac, 1990; Meyer & Allen, 1997;; MudorPooksoon, 2011; Riketta, 2002, 2008).
Table 3. Predicting effects of HRM Practices
Variables / Affective Commitmentβ / Turnover Intentions
β
Recruitment & Hosting / 0.11 / -0.21**
Training / 0.38*** / -0.39***
Performance Appraisal / 0.09 / 0.01
Notes: **p<0.01; ***p<0.001
Additionally, a mediation effect of the affective commitment was tested, in the relationship between perceived HRMpractices andTurnover Intentions. In order to verify this effect, hierarchical regression analysis, following Baron and Kenny (1986) recommendations and Sobel test (Peacher & Hayes,2004) were conductedbut this effect was only found in relation with Training (Z= -3,95; R²= 0, 315). Training has been considered a crucial human resource management practice for promoting organizational commitment and has been included in various conceptualizations of high performance work systems (Huselid, 1995; Lepak & Snell, 2002). Affective commitment showed an important mechanism to explain the relationship between training practices and turnover intentions.
Our main concern in this study was to understand if Trainees, high potential labeled group, would present what the organization would expected, higher levels of liaison and retention in comparison with other employees. Our findings didn´t went on that direction.
Being the trainees a younger group and with higher academic qualifications it is likely that they are more ambitious about their future, fast career and rewards progression, and eager to develop career in diverse work contexts. All the investment made on the high-potential group(specifictraining and individual coaching for about two years) didn’t resulted on higher levels of commitment and reduced intention to leave when compared with “ the other employees” involved in “ more traditional “ recruitment and induction processes.
An important implication of this research is that organizations should not assume that their investments on high potential young employees has a safe return on loyalty or desire to stay and there is a need to promote the development of adequate HR practices that attained to their needs and interests. This paper provides empirical findings to understand implications of retention policies and the role of human resources practices promoted by organizations and in particular the high value of training for the increase of organizational commitment and for the desire to stay.
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