Using survival analysis to demonstrate the effects of training on employee retention

Abstract

In order to thrive, companies are waging war with competitors to hire and retain the most knowledgeable and skilled employees. Personnel with industry experience are the highly valued field generals who will win new business and generate revenue. The cost of acquiring experienced personnel and the cost of losing such personnel is substantial, upwards of $100,000 per person. To remain profitable, companies must retain personnel as long as possible. Training is among the many tactics that have been implemented to increase retention among employees. This article focuses on assessing the impact of a 3-day training course designed to acclimate experienced hires to one company's policies, formal and informal procedures, and pathways to success. A quasi-experimental design, wherein study participants self-selected to attend training, was used to test the hypothesis that training would increase retention and justify the substantial financial investment in training. Attention is given to the benefits of using survival analysis as a data analytic technique applicable for employee retention studies.