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Residency programs, first reported in the literature in the 1980s, are of documented value for the successful training of a graduate nurse into practice. With the present nursing shortage, residency programs are regarded as an important feature in attracting and retaining the much needed new graduate. Six university hospitals pilot tested a residency program to ease new graduate transition into practice. The purpose of this study was to ascertain if a yearlong program results in increased levels of satisfaction in and retention of new graduates.