Learning Curves Have Significant Financial Impact, Especially for External Hires, Mellon Survey Results Show
RIDGEFIELD PARK, N.J., Nov. 12 /PRNewswire-FirstCall/ -- External hires take up to twice as long to reach full productivity, compared to those hired into new positions from within the organization. Learning patterns also differ significantly between internal and external hires, with nearly half of internal hires rapidly reaching a relatively high level of productivity, versus only a fifth of external hires. These are among the results of the "Mellon Learning Curve Research Study" by Mellon's Human Resources & Investor Solutions, which examines the time it takes to attain full productivity for both internal and external hires in eight job categories -- executives, managers, professionals, sales representatives, customer service representatives, technicians, office/clerical, and operatives (workers who operate machines or processing equipment). Results of the study, noted below, include the median time to achieve full productivity for internal and external hires in the eight different job categories. Job Category Median Time to Achieve Full Productivity (Weeks) Executive External 26 Executive Internal 16 Manager External 25 Manager Internal 14 Professional External 20 Professional Internal 12 Sales Rep External 16 Sales Rep Internal 12 Customer Service Rep External 12 Customer Service Rep Internal 6 Technician External 12 Technician Internal 9 Office & Clerical External 12 Office & Clerical Internal 8 Operative External 8 Operative Internal 4 The study also looked at the shape of the learning curve, determining productivity levels at different points along the path to 100% productivity. "By looking at both the length and the shape of the learning curve we were able to calculate an average number of unproductive days for a typical employee in each job category," said Edward Mactas, a Mellon principal and consulting actuary. On average, internal hires had 50% fewer unproductive days than external hires, a difference the study calls "The Internal Hire Advantage." "Unproductive days can also be converted into a financial measure of lost revenues," added Mactas. "Our calculations indicate that lost productivity due to learning curves may total between 1% and 2 1/2 % of total revenue." Mellon Financial Corporation (NYSE: MEL) is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and high net worth individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, human resources and investor solutions, and treasury services. Mellon has approximately $3.2 trillion in assets under management, administration or custody, including $625 billion under management. Its asset management companies include The Dreyfus Corporation and U.K.-based Newton Investment Management Limited. News and other information about Mellon is available at www.mellon.com .RELATED LINKS
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