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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 63
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.