New Hires’ Informal Training and Turnover

We analyze the relationship between informal on-the-job training and turnover of new hires. To this end, we use unique survey data about different aspects of informal co-worker training and link it to both firm-level and individual-level administrative data.

We find that informal training is negatively associated with turnover of new hires six months after entering the firm. However, this relationship becomes smaller and statistically weaker after 12 months.

Further heterogeneity analysis reveals a trade-off after one year, as onboarding can, to some extent, contribute to increased retention in firms with a lower wage premium and thereby help to mitigate costly worker turnover in these firms.

Joint work with Didier Fouarge and Carolin Linckh.

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