A recent collaborative study by the University of South Florida and the University of Cincinnati reveals how workplace cohorts substantially influence newcomer retention, providing essential insights for organizations looking to reduce employee turnover and improve team stability. Workplace cohorts are groups of new employees who join an organization simultaneously and often receive training together. This approach is prevalent in various sectors, including the military and professional services such as law, accounting, and consulting. It is also common among Fortune 500 companies like Amazon and Walmart.

Amit Chauradia, an Assistant Professor at the USF Muma College of Business and the study’s principal investigator, emphasizes the importance of strategic cohort management to enhance retention. According to Chauradia, organizations could significantly reduce turnover risks by aligning the hiring process with employee location preferences and promoting a positive cohort experience. This approach fosters a supportive environment that can discourage employees from seeking other job opportunities.

The research, published in the Journal of General Management, analyzed survey data from about 650 new employees across 32 cohorts at a global IT services firm. The findings revealed a contagion effect within cohorts: when some cohort members begin job-seeking behaviours, it increases the likelihood that others will follow suit, particularly if they feel less committed to the organization’s location. This suggests a strong attachment to the organization’s geographical location can mitigate turnover risk.

Chauradia and Daniel Peat, an Assistant Professor at the Carl H. Lindner College of Business at the University of Cincinnati and a co-author of the study, are scholars in human capital. They focus on the competencies and skills that add value to individuals and organizations. Peat highlights that while previous research primarily focused on collective turnover and organizational issues, their study is among the first to examine the impact of cohort dynamics on individual decisions to leave an organization.

The study builds on existing theories of job embeddedness and turnover contagion, showing how social connections within cohorts can anchor employees to an organization or accelerate their departure. This research challenges organizations to rethink how they manage cohorts, which is critical in managing Generation Z, who represent a significant portion of the global workforce and are known for their high turnover rates within the first year of employment.

The study offers new strategies for corporate leaders and HR professionals and underscores the importance of managing cohorts as social groups rather than mere collections of individuals. By prioritizing geographic preferences during the hiring process and fostering positive cohort dynamics, companies can create an environment where newcomers feel embedded and are more likely to stay long-term. Chauradia and Peat plan to continue their research to explore how organizations can effectively develop newcomers in a manner that encourages talent to grow, perform, and stay within the organization, promising further insights that could help build a more stable, committed workforce.

More information: Amit Chauradia et al, The ties that bind: Cohort influence on newcomers staying or leaving their organization, Journal of General Management. DOI: 10.1177/03063070251332040

Journal information: Journal of General Management Provided by University of South Florida