Preventing early turnover of new employees considering formal and informal relationships

Abstract

Early turnover rate has remained around 30% for the past 30 years. The main reason is that personal relationships in companies were not good. To the best of our knowledge, there is no previous study that considered early turnover from the viewpoints of both formal and informal relationships. The aim of this paper is to propose a company organizational structure that would prevent early turnover considering both of these relationships. We built a simulation model to infer early leavers from formal and informal relationships. Based on this model, we propose a company organizational structure in which one team is formed by younger members of the existing workforce, and new employees are assigned to the team. The simulation results showed that the proposed structure was more effective in reducing early turnover than the existing top-down corporate structure.