• Rotational Programs: Prevalence, Effects on Retention

    Spotlight for Recruiting Professionals
    March 5, 2014

    The onboarding process for new graduate hires may have an influence on the likelihood of these employees staying with the organization for five years, according to results of NACE’s 2013 Recruiting Benchmarks Survey.

    Firms with these programs retained an average of 6 percentage points more employees at five-year benchmarks than firms without them. (See Figure 1.)

    However, there was no difference in first-year retention rates between firms with rotational programs and those without.

    Since 2011, the percentage of employers with rotational programs has remained relatively unchanged. In 2013, 42.8 percent of employers reported having these programs.

    The use of rotational programs varied across industries with employers in the finance, insurance, and real estate; gas and oil extraction; and three manufacturing (chemical and pharmaceutical, motor vehicle, and miscellaneous) sectors considerably more likely to have rotational programs than employers in the wholesale trade, construction, computer and electronics manufacturing, and professional services (accounting services, management consulting, and miscellaneous) sectors.

    Company size also had an effect on whether an employer reported having a rotational program, particularly for the largest and smallest firms. Those with 1,000 or fewer employees averaged far below the mean, while more than 60 percent of firms with more than 20,000 employees reported rotational programs. (See Figure 2.)

    The 2013 Recruiting Benchmarks Survey was conducted May 22, 2013, through July 31, 2013, among NACE employer-member organizations, 275 of which—28 percent—participated. Details about the 2013 Recruiting Benchmarks Survey report are available at www.naceweb.org/surveys/college-recruiting.aspx.

    Rotational programs vs. Retention rates

    Rotational programs by company size