The Effects of Organizational Culture on Millennial Engagement and Turnover in Start-Ups: An Innovation Study

摘要

Start-up companies in turbulent industries such as third-party logistics (3PL) transportation services must understand what motivates employees to succeed on the job, as well as the knowledge and organizational resources these employees need to help the company reach its goals. With annual employee turnover rates hovering just under 50%, it is imperative that 3PL leaders have a complete understanding of what attracts employees to accept positions at their firms and how engagement and organizational culture affects talent retention. Of interest to start-ups is the retention of millennials, who will comprise more than half the workforce in the next five years. This study used the Clark and Estes' gap analysis framework to evaluate influence on millennial operations staff members working at a 3PL start-up. Through an analysis of documents, observations, and one-on-one interviews, findings centered on a lack of strategic planning, clear communication, and formal onboarding and training processes as driving factors behind knowledge, motivation, and organizational gaps. The study also determined that although the start-up environment energized and motivated millennial staff members, the lack of work-life balance and difficulty envisioning long-term career paths within a company affected organizational culture, engagement, and turnover. The Kirkpatrick and Kirkpatrick New World Model, a training evaluation framework, was applied to the research findings to develop recommendations for addressing barriers to the company achieving its goals, as well as to support the millennial operations staff members in reaching their individual goals.