International Journal of Organizational Analysis

A previous trainee experience: does it matter for retention of young graduates?

Francisco Cesário, Maria José Chambel,
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Francisco Cesário, Maria José Chambel, (2017) "A previous trainee experience: does it matter for retention of young
graduates?", International Journal of Organizational Analysis, Vol. 25 Issue: 2,pp. -, doi: 10.1108/IJOA-02-2016-0977
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 A previous trainee experience: does it matter for retention of young graduates?

Introduction

One of the most important strategic dilemmas confronting top-performing companies is their

capability to attract and retain young graduates with good development potential in order to

develop a highly qualified workforce with high levels of organizational commitment

(Govaerts et al., 2011; Michaels et al., 2001; Wehner, Giardini, and Kabst, 2012). Despite the
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current European economic and labour market recession, to ensure their survival and to

achieve a sustainable competitive advantage, companies are fighting to recruit young

graduates. Through university recruitment activities these companies attempt to attract

candidates with the highest potential, prioritizing graduates of prestigious universities

(Philips, 2009; Tibergian, 2013). Although it is possible for organizations to pursue this

strategy by focusing on graduate recruitment, such a strategy is unlikely to be successful in

the long term if it is not followed by appropriate retention strategies (Garavan et al., 2012).

Investing in specific young graduate initiatives will not provide significant return if their

potential is undetermined by HR deficiencies, such as weak employee engagement or absence

of career development opportunities, which result in graduates voluntarily leaving the

company (Rigg, 2015).

In Portugal graduate recruitment has become one of the main HR challenges;

prestigious organizations are in strong competition for these resources. Organizations

understand that their futures depend on their ability to recruit and engage the best graduates

(Connerley et al., 2003).

Portuguese market leader companies provide examples of an innovative graduate

recruitment strategy. These companies have implemented trainee programmes specifically

 designed to attract young graduates from the best Portuguese universities. These programmes

are publicized annually in the most important media sources (e.g., national newspaper

advertisements) and in terms of corporate marketing such strategies differentiate graduates as

targets. Admission into a trainee programme is viewed as belonging to a high-potential group

– the “Special Ones”. Large and well-recognized companies operating in Portugal have

increased significantly their efforts to attract graduates by implementing these Trainee

Programme (e.g., Nestlé, Unilever, Lidl, EDP, Capgemini, Leroy Merlin, GALP, Vodafone,

and Santander). Despite the growing importance of the trainee programmes, there is still a
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lack of knowledge about the positive effects of this specific recruitment strategy on the

attitudes of new graduates after completing the program, especially as compared with other

graduates not recruited through a trainee program.

The purpose of this study, involving recent graduates recruited through a corporate

trainee programme, is: first, to understand whether, after the deep economic and financial

crisis that strongly affected Portugal from 2009 to 2014, human resources management

(HRM) practices promoted by organizations continue to have a positive effect on young

graduates’ affective commitment, and whether these practices are negatively related to

turnover; secondly, to verify whether young graduates recruited through a trainee programme

will have higher levels of affective commitment and lower levels of intention to leave when

compared with young graduates not recruited through that specific programme.

HRM practices and employee attitudes

Recent graduates are an important part of the organization’s talent or human capital. The role

of HRM is crucial in designing and implementing a talent management strategy and practices

that can attract, develop and retain talented graduates (Rigg, 2015; Turban, 2001).
 Research provides support for the argument that HRM practices have a direct

influence on employees’ attitudes and behaviours, such as their affective commitment and

intention to remain in an organization (Nishii et al., 2008; Paauwe and Boselie, 2005).

However, Wright and Nishii (2007) suggest that the focus should not be on the impact of

HRM practices at the strategic level of the organization, but on employee perception of those

practices. HRM practices may be seen by employees as an important input into the social

relation process (Snape and Redman, 2010), which relies on a mutual social exchange

relationship developing between them and the organization. Reciprocity, in this social
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exchange relationship, tends to be a central factor because an organization with reciprocal

HRM practices, properly implemented, sends a strong message to employees about the value

the organization attributes to them (Chambel et al., 2015).

Thus, HRM practices are a method of organizational communication (Bowen and

Ostroff, 2004) and if an organization communicates to employees that they are important,

they reciprocate with attitudes and behaviours that are also important to that organization

(Katou and Budwar, 2014). In fact, employees reciprocate by enhancing their positive

attitudes toward the organization when they perceive favourable treatment from their

employer, namely, a sense that the organization answers their needs and pays attention to

their goals (Chambel and Farina, 2015). Organizational commitment—in particular, affective

commitment—is considered to be an important determinant of dedication, loyalty, and a

strong desire to remain in the organization (Allen and Meyer, 1990). When employees

perceive that the organization invests in them, they will respond with a higher affective

commitment to the organization and a lower intention to leave the organization voluntarily

(Hinkin and Tracey, 2010; Kehoe and Wright, 2013; Andrews et al., 2003).

For new graduate employees, the opportunity to be recruited by a company that values

their skills and competences, that wants to help them develop their knowledge, that invests in
 training, and that clearly defines performance expectations and goals may be seen as

invaluable and beneficial. With these practices, the company facilitates the performance of

new employees and enhances the likelihood they will remain with the company. In fact,

rigorous recruitment and selection procedures, followed by constant development support,

may signal to the new employee that the company cares about the individual’s quality of life

(Huselid, 1995).

A young graduate’s decision to join a company, even as a trainee, is thought to be

influenced by impressions of the company’s attractiveness as an employer (Rynes, Bretz, and

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Gehart, 1991). Organizations are looking for new ways to attract graduates and are becoming

increasingly aware of the importance and advantages of their image and reputation. An

organization with a better image or reputation can attract better graduate candidates

(Lemmink, Schuijf, and Streukens, 2003; Gatewood, Gowan, and Lautenschlager, 1993).

HR practices represent an organizational investment in employees and underscore

their value within the company (Takeuchi et al., 2007). With such investments, the

adaptability and performance of young graduates as new employees are enhanced and there is

a higher probability that the company will maintain this employment relationship.

In summary, the link between HRM practices and affective commitment has been

widely demonstrated in previous research (Chambel, 2012; Nishii et al., 2008; Paul and

Anantharaman, 2004; Takeuchi et al., 2007; Wright and Kehoe, 2008). Furthermore, earlier

studies have also shown that particular HRM practices, which reinforce employee beliefs that

the organization values their contributions and cares about their needs and wellbeing, reduce

employee turnover (Paré and Tremblay, 2007; Rogg et al., 2001; Way, 2002). Based on this

research, it is hypothesized that:

H1: HRM practices developed by the company relate positively with new graduate

employees’ affective commitment.

 H2: HRM practices developed by the company relate negatively with new graduate

employees’ turnover intention.

Thus, in this study it is expected that specific HRM practices—selection, induction

into the workplace, skills development, and performance evaluation—provided by the

organization for all graduates will promote their organizational affective commitment and

reduce their turnover intentions.

Graduate recruitment: the study context

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From 2009 to 2014 Portugal experienced a deep economic crisis and a financial assistance

programme was agreed upon by the Portuguese authorities, the European Union, and the

International Monetary Fund to run from May 2011 to June 2014 with the total amount of

financing to be €78 billion. During this period, most recruitment activities (in both public and

private sectors) were suspended; salaries and career promotions were frozen; and some wages

and benefits were reduced.

Despite this recession, large companies implemented specific programmes to attract

young graduates. Portuguese companies adopted two different approaches in the recruitment

of new graduates: either a standard process or through a corporate trainee programme. In the

first approach, which lasts about three to four weeks, graduate candidates apply to job

advertisements in national newspapers and are involved with standard selection methods,

mostly just based on individual interviews and curriculum analysis. Selection is followed by a

formal structured integration process, which includes group sessions with newcomers where

information about the company is delivered, such as its history, structure, mission, vision, and

core values.

In the second approach, recruitment through a corporate trainee programme,

companies design a process, which lasts for approximately three months. HR apply specific
 selection methods (e.g., personality and ability tests, group dynamics, assessment centre with

work motivation and career expectation interviews) to ensure that the most suitable and

appropriate new graduates are selected for the trainee programme. For those graduates who

are selected, a customized induction and welcome programme is prepared, followed by

intensive soft skills training and job rotation experience, with ongoing management support,

and regular performance feedback as well as assignment of an internal coach or mentor.

Generally the programme (Figure 1) includes development activities, such as formal training

(particularly on soft skills), participation in teambuilding outdoor activities, and individual

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coaching and job rotation experience among different business units. At the end of the trainee

programme, an individual performance appraisal is conducted by the HR department, and

those who succeed are invited to be employed with a formal, permanent employment

contract.

----------------------------

Insert about here Figure 1. The Trainee Programme Structure

------------------------------

Comparing these two recruitment approaches for new graduates, we may infer that the

companies which developed and implemented trainee programmes made a greater investment

in graduates than those who did not. According to social exchange theory, graduates respond

reciprocally in terms of work attitudes based on perceptions that the company HRM practices

satisfy their expectations and value them (Chambel et al., 2015), so we would expect that

graduates with a corporate trainee experience prior to selection will develop stronger positive

attitudes toward the company than graduates recruited by the standard method. Based on this

research, it is hypothesized that:

 H3: Graduates with former trainee experience have higher levels of affective

commitment and lower intention to leave when compared with graduates who have not

participated in the trainee programme.

Method
Sample and procedure

This study was conducted between 2013 and 2014 with the support of a Portuguese company,

a market leader, which since 2005 has run an annual trainee programme with an average of

80 young graduates recruited at university campuses. After the graduates complete the
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programme with 24 months of duration, and about 80% of them are offered a permanent

employment contract.

The first step was an unstructured interview to gather information, the HR strategy

and the rational for the implementation of the program. The HR director explained that each

year the company creates a staff recruitment plan based on immediate business needs and

with the involvement of unit managers. This plan is called the “Operational HR Recruitment

Plan”. The Plan may include recruitment for different employee categories but mainly for

technical and functional jobs (e.g., finance or marketing assistants). Additionally, the CEO

and Board members, based on the organizational development strategy, decided to implement

a specific programme to attract and identify a pool of young talent among the best Portuguese

university students, not to fill immediate business needs but to prepare them for future

leadership positions and strengthen the organization’s potential for growth.

The HR department was then asked to identify the two groups of graduates recruited

between 2005 and 2008—graduates with experience as trainees prior to hiring and non-

trainee graduates. We wanted to compare two different groups of graduates with similar

tenure of 5–8 years working in the company. An email invitation to participate was sent to

225 graduates, and we obtained data from 168 (74.6 %). Of the 168 selected to participate in
 this study, 84 were former trainees and 84 non-trainees.

Measures

Human Resource Practices. Based both on the organization’s trainee program and interviews

with the HR Corporate Director, three HRM practices were identified as the most visible for

graduates: 1) recruitment and induction; 2) training; and 3) performance appraisal. To assess

graduates’ perceptions of the importance of these practices, we used a Portuguese language

questionnaire (Cesário, 2015) with 12 items. There were four items for each practice.

Examples of statements in each category are as follows:

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Recruitment and induction – “When I started working for this organization, I received

adequate support from my supervisor to facilitate my integration.”(α= 0.66)

Training – “When I think of the training I received in this organization, it has been

useful to improve my performance”. (α= 0.85)

Performance appraisal – “When I think of my performance appraisal in this

organization, the feedback I receive is useful to improve my performance”. (α= 0.79).

Responses were scored on a 5-point Likert scale ranging from 1=strongly disagree to

5=strongly agree.

Affective commitment. To assess affective commitment, a Portuguese language adaptation

(Nascimento et al., 2008) of Meyer and Allen’s (1997) scale with six items (α= 0.86) was

used. Examples of these statements are: “I would be happy if I developed the rest of my

career in this company” and “I do not feel emotionally attached to this company” (inverted).

Responses were scored on a 7-point Likert scale ranging from 1=totally disagree to 7=

totally agree.

Turnover intention. We measured turnover intention using a translation of the scale

developed by Bozeman and Perrewe (2001). The scale contained five items. Examples of
 these statements are: “It is likely that I will look for another job in the near future” and “I’m

currently looking for another job in another organization”.

Responses were scored on a 7-point Likert scale ranging from 1=strongly disagree to

7=totally agree. (α= 0.88).

Results

Initially correlations between all variables for the total sample were analysed. The results

(Table 1) show a significant positive association between perceived HR practices and

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affective commitment (recruitment and induction, r = 0.28**; training, r = 0.46**;

performance appraisal, r = 0.28**) and a negative relation to turnover intention (recruitment

and induction, r = -0.35*; training, r = -0.47**; performance appraisal, r = -0.23**). This

suggests that a high perception of HR practices reinforces the employment relationship and

diminishes the desire to leave the company voluntarily.

----------------------------

Insert about here Table 1. Descriptive statistics and correlations for all variables

-----------------------------

However, descriptive statistics comparing the two groups (Table 2) show a slightly lower

level of affective commitment for graduates with previous trainee experience (M = 4.08, SD

= 0.87) compared with non-trainees (M = 4.14, SD = 0.90), with opposite findings for the

intention to leave (former trainees: M= 2.54, SD = 0.08; non-trainees: M = 2.24, SD = 1.28).

-----------------------------

Insert about here Table 2 Descriptive statistics between Groups

 -------------------------------

Regression analyses

To further investigate which of the considered HR practices contributes to the prediction of

affective commitment and turnover intention, a hierarchical multiple regression analysis was

conducted (Table 3).

------------------------------
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Insert about here Table 3 Predicting effects of HRM Practices

--------------------------------

H1 predicted that graduates’ perceptions of the HR practices promoted by

organizations would be positively related to affective commitment. The results show that

only the perceptions regarding training practice were a significant predictor of affective

commitment (β = 0.38, p <0.001), thus providing partial support for this hypothesis.

H2 predicted that graduates’ perceptions of the HR practices promoted by

organizations would be negatively related to turnover intentions. As shown in Table 3,

recruitment, induction and training were significant predictors of turnover intention (β = -

0.21**, p <0.01 and β = -0.39***, p <0.001, respectively). However, the perception regarding

performance appraisal was not a significant predictor of turnover intention. Thus, H2 had

only partial support.

H3 predicted that graduates with previous trainee experience would have higher levels

of affective commitment and lower levels of intention to leave when compared with
 graduates with no trainee experience. However, t-tests (Table 2) indicate there was no

significant difference between the two groups in terms of affective commitment (t = -0.43, p

= 0.67) and turnover intentions (t = 1.63, p = 0.11). Thus, no support for H3 was not found.

Discussion

One of this decade’s main organizational challenges—which confronts companies all over

Europe and in Portugal, in particular—is to develop a sustainable, strong, and competitive

workforce, as well as new means of attracting and retaining young graduates. Identifying the
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appropriate high-potential group to target at the appropriate time is crucial to the graduate

recruitment process and should be the primary HR challenge (Breaugh, 2009). HR strategy

should incorporate new approaches to career development as well as the expectations of

recent graduates. The challenges that employers encounter in terms of graduate recruitment

and retention are highly complex and contentious (Heaton et al., 2008), mainly because, over

the last decade, young graduates have been entering the labour market with higher

expectations (Broadbridge, Maxwell & Ogden, 2007; Oliver, 2011).

The first purpose of this study was to explore the association between new young

graduates’ perceptions of HR practices used by organizations and their attitudinal outcomes.

Concerning H1—which presupposed that HR practices developed by the company were

positively related to new graduates’ affective commitment—it was observed that training was

the only HR practice predictive of this positive attitude. This observation is in line with

previous studies that showed a positive relationship between training and workers’ affective

commitment (Chambel and Sobral, 2011; Mathieu and Zajac, 1990).

Going a step further, this study confirms that in a very competitive graduate

recruitment environment, organizations should invest in employees’ training and

development to help them achieve organizational and individual goals (Ghosh et al., 2011;
 Guzzo et al., 1985). This is because employees reciprocate this organizational investment by

emotionally liaising with the organization.

Regarding the hypothesis (H2) that HR practices experienced by graduates were

negatively associated with turnover intentions, results showed that recruitment and training

activities predicted this attitude. These HRM practices influence the employees’ feeling of

importance to the organization, signalling that the organization is supportive in terms of

professional development and is seeking to establish or maintain a social exchange

relationship. Hence, employees reciprocate with a lower intention to leave (Allen et al., 2003;
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Leana and Florkowski, 1992; Meyer and Smith, 2000). Recruitment and training are therefore

practices that may be seen by graduate recruits as important inputs into the social relation

process (Snape and Redman, 2010), which relies on a mutual social exchange relationship

between employees and the organization.

H3 explored attitudinal differences between two groups of graduates: one group with

previous trainee experience, based on a high level of organizational investment in a trainee

programme lasting almost 24 months; and the other group, graduates with no trainee

experience prior to employment, based on a low level of organizational investment in

recruitment and selection activities. Contrary to what was expected, no differences were

observed between these two groups. Perhaps this unexpected result occurred because trainees

had higher academic qualifications (at least an MA degree) compared with the non-trainee

graduate group, mostly with BA degrees and not seen inside the company as a high potential

group. Maybe both characteristics, higher educational qualifications and being labelled as a

special high potential graduate group, suggest that graduates with trainee experience have

developed higher ambitions and expectations regarding their professional aspirations and

expect a fast career progression and higher rewards (Terjesen et al., 2007). If they feel their

expectations are not being fulfilled, they do not develop a strong organizational commitment
 and company HR practices to promote their retention are worthless. This possible explanation

of results should be further investigated through a similar study where a mediation effect of

the psychological contract fulfilment should be tested.

This study raises a very important issue for reflection by organizations. Most HR

leaders understand that the use of highly-qualified graduates to maximize business efficiency

has become a distinctive factor in ensuring organizational success (Ingham, 2006) and

developing an effective strategy for graduate retention is very important for the future of a

company (Frank et al., 2004).

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Previous research has identified several organizational and worksite environmental

factors relating to employee retention that can also be applied to graduates. Factors

influencing retention appear to include challenging and meaningful work, opportunities for

advancement, empowerment, responsibility, managerial integrity, and new opportunities (Birt

et al., 2004). Walker (2001) also identified factors which can promote retention: positive

relationships with colleagues; recognition of capabilities and performance contributions;

good work-life balance; and adequate communication within the organization. Research has

also shown that as long as employees feel they are learning and growing, they will be less

inclined to leave (Govaerts et al., 2010).

Limitations and future directions

This study has certain limitations. The cross-sectional nature does not allow for generalized

conclusions regarding causal relations. Graduates of the company were requested to respond

to the questionnaire and report their perceptions regarding HR practices, levels of

commitment and intention to leave at a specific time. Future studies would benefit from

testing these relations using a longitudinal design.

 This study’s findings raise another interesting question with regard to organizational

strategy: “Is it useful, or fair, to explicitly create two groups of graduates within the same

organization in such a way that the organization promotes two micro-cultures?” Future

research regarding this question could have considerable implications for HR managers and

organizational leaders designing strategies to attract and retain young graduates.

Conclusion

From a practical perspective, our findings suggest the need for organizations to rethink their
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recruitment and selection strategies and pay attention to the career expectations of young

graduates. This study provides empirical findings to help HRM understand the implications

of attraction and retention policies and the role of HR practices promoted by organizations, in

particular, training opportunities to increase employee organizational commitment and desire

to remain with the company. The results of this study will provide HRM with insights into

some practices that could increase organizational commitment and retention of graduates.

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 Trainees Selection Induction & On
Atraction Procedures Welcome
Procedures Boarding

Permanent e
Performance Development
Contract Evaluation & Activities
Feedback

Off Boarding
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Figure 1. The Trainee Programme Structure (24 months duration)

 Table 1. Descriptive statistics and correlations for all variables (total sample)

Variables Mean SD 1 2 3 4 5 6
1.Academic 2.96 0.95
Qualifications
2.Tenure 4.17 1.28 -0.02
3.Recruitment & 2.63 0.47 -0.07 -0.12
Induction
4.Training 2.74 0.69 -0.18* 0.35**
5.Performance 2.84 0.69 0.06 -0.9 0.35** 0.40**
Appraisal
6.Affective 5.30 1.14 -0.23** 0.04 0.28** 0.46** 0.28**
Commitment
7.Turnover 2.91 1.44 0.33** 0.08 -0.35** -0.47** -0.23** -0.49**
Intention
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Table 2. Descriptive statistics between Groups

Variables Did you participate

in the Trainee Mean SD T test P value
Programme?
Recruitment & Yes 2.63 0.41 .02 .98
Induction No 2.63 0.52
Training Yes 2.81 0.69 1.34 .18
No 2.67 0.68
Performance Yes 2.94 0.63 1.82 .07
Appraisal No 2.74 0.72
Affective Yes 4.08 0.87 -.43 .67
Commitment No 4.14 0.90
Turnover Yes 2.54 0.63 1.63 .11
Intentions No 2.24 1.28

Table 3. Predicting effects of HRM Practices

Affective Commitment Turnover Intentions

Variables β β
Recruitment & 0.11 -0.21**
Induction
Training 0.38*** -0.39***
Performance Appraisal 0.09 0.01
Notes: **p<0.01; ***p<0.001