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OCR for page 63
63
90%
80%
70%
Annual Turnover
60%
50%
Contract
40% Public
Trendline - Contract
30%
Trendline - Public
20%
10%
0%
$7 $9 $11 $13 $15 $17 $19 $21
Starting Adjusted Hourly Wage
Figure 5-3. Adjusted starting wage, public/private providers, and turnover.
could be related to employment by a public operator. Fig- some cases could not be confirmed and others could have
ure 5-5 shows the relationship between paid health benefits gone undetected. (In the analysis, the employer contribution
and turnover after controlling for public versus contract has been used and calculated as 100% minus the employee
operation. While there is still some apparent relationship, contribution.)
it is much reduced and not statistically significant at all.
The influence of health coverage could be partly obscured
Summary of Findings
by difficulties in the data collection process. The questionnaire
asked for employee contribution to health care coverage, but The analysis of national survey data does show a strong
examination of responses indicated that some systems mis- connection between wages and turnover. The models suggest
understood the question and reported employer contribution an average reduction in turnover of between 3.5% and 5.1%
instead. Wherever possible, these errors were corrected, but for every $1.00 increase in starting wage.
90%
80%
70%
Annual Turnover
60%
50%
40% All Systems
30% Trendline - Contract
20%
10%
0%
0% 20% 40% 60% 80% 100%
Employer Contribution to Health Care
Figure 5-4. Health coverage and turnover.
OCR for page 64
64
90%
80%
70%
Annual Turnover
60%
50%
Contract
40% Public
30% Trendline - Contract
Trendline - Public
20%
10%
0%
0% 20% 40% 60% 80% 100%
Employer Contribution to Health Care
Figure 5-5. Health coverage, public/contract providers, and turnover.
While there is a strong connection, differences in starting The analysis found that turnover is also impacted some-
wages appear to only explain 20% to 21% of the variation in what by the percent of employer contribution to health care
turnover rates. Clearly, while pay rates are important, there coverage. This relationship was not as significant as expected,
are many other factors that affect turnover. however.
Of the other factors tested in this analysis, the percentage While this analysis begins to explore the relationship between
of part-time operators and the type of entity appear to be compensation and turnover, more analysis is needed. Research
significant. The analysis suggests that, on average, turnover is needed to identify and quantify the other factors that account
is lowered by about 3.5% for every 10% reduction in the for differences in turnover. The underlying reasons why pub-
percentage of part-time operators employed. Employment lic entities experience lower turnover also needs further study.
by a public entity also appears to affect turnover. Control- Given that the qualitative information suggests that health care
ling for wages, public entities appear to have turnover that coverage is more significant than this initial analysis indicates,
is 10% lower than private companies providing ADA para- more research is needed to document the impacts of health
transit service. care coverage on turnover.
