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The Effects of Network Groups on Minority Employee Turnover Intentions

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The Effects of Network Groups on Minority Employee Turnover Intentions THE EFFECTS OF NETWORK GROUPS ON MINORITY EMPLOYEE TURNOVER INTENTIONS Raymond A. Friedman and Brooks Holtom Companies in the United States are concerned with retaining minority employees to maintain or increase the diversity of their workforce. Here we assess the value of one approach companies have used to retain minority employees: “network” groups. Based on data obtained from a large company with extensive network groups, this study compares the turnover intentions of minor- ity employees who have joined one of the company’s network groups to those who have not joined one of the company’s network groups. The data show that employee network groups can be useful in helping companies retain managerial-level minority employees. Extensive recom- mendations are provided to help organizations maximize the effectiveness of network groups. © 2002 Wiley Periodicals, Inc. For over 30 years, U.S. companies have reward managers who retain minority em- been concerned with retention of minority ployees (Crump, 1988), and intensive train- employees, initially to better comply with ing and intervention programs (Alderfer, affirmative action requirements (Gold, 1992). In this article we assess the impact 1993) and later to increase diversity (Jack- of one approach to supporting minority em- son et al., 1992; Triandis, 1995). We expect ployees: minority employee “network” that retention of minority employees is af- groups. These groups—usually initiated by fected by all of the factors that influence re- the employees themselves, but supported by tention in general, including job satisfac- the company—are designed to help minor- tion, organizational commitment, and ity employees be better connected to each perceived availability of alternative jobs other, and thus gain greater access to infor- (Griffeth, Hom, & Gaertner, 2000; Maertz mation, social support, and mentoring. & Campion, 1998). In addition, however, If network groups work as envisioned, companies have developed various pro- they should help companies retain minority grams designed to support minority employ- employees. Yet, there has been no research ees in particular, such as mentoring pro- assessing the impact of network groups on grams (Thompson, DiTomaso, & Blake, turnover intentions of minority employees. 1988), compensation systems designed to Are all the claims made about network Correspondence to: Raymond A. Friedman, Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, TN; telephone: 615-322-3992; e-mail: [email protected] Human Resource Management, Winter 2002, Vol. 41, No. 4, Pp. 405–421 © 2002 Wiley Periodicals, Inc. Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/hrm.10051 406 • HUMAN RESOURCE MANAGEMENT, Winter 2002 groups really valid? Should companies sup- ing social support, information, and leader- port network groups? Do network groups ship opportunities to members. According to have the same effects for minority employees Friedman (1996), a key challenge facing mi- at all levels of the organization, or do they norities is that most people tend to interact help some employees more than others? Can more comfortably with those who are similar. Employee a poorly run network group still help? These If you are a minority in a company, however, network groups questions need to be answered for companies there may be few who are similar and they are formally to know how to respond sensibly to the for- may be hard to locate. The dominant cultural established groups of mation of groups. In our study we seek to an- norms are most likely of the White majority employees— swer these questions by examining data from (Ibarra, 1993, 1995). As a result, minorities usually women one company that has extensive network may not have as many close, personal ties at or minorities— groups. We are able to compare the turnover work, making it likely that they will receive that get intentions of employees who have joined one less social support and mentoring than together for of the company’s network groups with those Whites. This potential disadvantage may various activities. who have not joined one of the company’s have far-reaching effects. For example, Seib- network groups. We also test whether the ef- ert, Kraimer, and Liden (2001) found that in- fects of network groups are stronger for some dividuals with multiple mentors reap greater minority employees than others, and whether career benefits than those who have only one satisfaction with a network group among mentor. Minorities also may not have as members can affect its impact on retention. many casual contacts (Granovetter, 1973), those that are less deep and personal, but Background on Network Groups still important in building a social network and gaining access to information. Employee network groups are formally estab- Network groups provide minorities with lished groups of employees—usually women knowledge about other minorities in the com- or minorities—that get together for various pany and opportunities to meet with them and activities (see Childs, 1992; Friedman, 1996; interact comfortably. This should lead to more Hyde, 1993). Some of the types of activities deep, personal relationships at work, as well include social gatherings, discussions about as a broader network of casual connections. what is going on in the company (e.g., new These contacts, in turn, provide information technologies, corporate strategy, career sys- about the company and how to adapt to it, as tems), or fundraising for minority scholar- well as opportunities for mentoring and sup- ships. These meetings are often run by group port. The end result should be enhanced ca- members, but they may also include senior reer development through community build- executives or HR managers who are invited ing and, ultimately, reduced voluntary to provide talks about particular issues turnover. While network groups may occa- and/or hear concerns that members may sionally communicate complaints to manage- have about the company. Meetings are usu- ment about corporate policies or how people ally over lunch or after work and tend to are treated (e.g., Creed & Scully, 1998; Fried- occur about once a month or every other man & Deinard, 1996), the primary purposes month. Many groups also organize a yearly of network groups are community building conference with outside speakers, seminars, and career building, not advocacy. and workshops (topics can range from sales techniques to personal financial planning to Turnover—From Attitudes to Social Ties discussions of ethnic literature). Corporate policies toward network groups vary (Fried- Much of the current theory and research on man & Bogar, 1999), but typically require voluntary turnover springs from the ideas of groups to state their purpose, have some type March and Simon (1958) on the perceived of charter and leadership structure, and be ease and desirability of leaving one’s job. The open to anyone in the company. perceived ease of movement is heavily influ- The stated purpose of most groups is to enced by job alternatives and the perceived enhance the careers of members by provid- desirability of movement is heavily influenced Network Groups and Minority Employee Turnover • 407 by job satisfaction. Job attitudes combined ness also predicts turnover above and beyond with job alternatives predict whether employ- a combination of perceived desirability of ees intend to leave an organization, which is movement measures (job satisfaction, organi- the direct antecedent to turnover.1 The re- zational commitment) and the perceived ease Recent search investigating this attitude-driven of movement measures (job alternatives, job theoretical and empirical work process and its component parts has been ex- search). Thus, job embeddedness assesses developing a tensive [Maertz & Campion (1998) and Grif- new and meaningful variance in turnover in concept of job feth et al. (2000) provide excellent reviews], excess of that predicted by the major variables embeddedness confirming that job satisfaction and organiza- included in almost all the major models of by Lee et al. tional commitment have consistent, statisti- turnover. Moreover, the links dimension, (1999) and cally significant, and negative relationships which is conceived to be a measure of social Mitchell and colleagues with turnover. Although researchers found ties was significantly and negatively corre- (2001) significant results, these results are modest, lated with both intent to leave and voluntary emphasizes the at best [e.g., attitudinal variables control only quitting. Thus, initial empirical results sup- importance of about 4 to 5% of the variance in turnover; port theoretical connections between social on-the-job and Griffeth et al. (2000)], leading Maertz and ties and reduced turnover. off-the-job social Campion (1998) to conclude that many other While social ties in general have been attachments on meaningful topics have been neglected. shown to reduce turnover, one particular turnover A number of factors that have been em- type of social tie has been shown to be espe- decisions. pirically associated with retention are not at- cially important, that of a mentor. Mentors titudes but are organizational in nature. In- work with protégés to address early career ducements to stay can include commitment needs for guidance, support, and affirmation to particular work groups or projects, rather (Levinson, Darrow, Klein, & Lim, 1978), than commitment to an organization or
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