Potential to Foster Relationships and Reduce Early Turnover by Assigning New Employees to Younger Teams based on Formal and Informal Relationships
Abstract
The early turnover rate of Japanese university graduates has remained at approximately 30% over the past 30 years, mainly because of poor human relations within companies. To the best of our knowledge, no previous study has examined early turnover from the perspective of both formal and informal relationships. We propose an organizational structure for companies that reduces early turnover by considering both formal and informal relationships. A simulation model was developed to evaluate the effects of such relationship networks on early turnover. To inhibit the early turnover of new employees, we recommend forming teams of younger existing employees and assigning new employees to such teams. The simulation results show that the proposed corporate organizational structure is more effective in reducing early turnover than the existing top-down corporate structures.
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