The current hiring and retention market in China is characterized by a degree of instability. People are still changing jobs but at a slower rate, and the positive outcome that comes from losing low performers is less because fewer low performers are being lost.

Research in 2008, by Cornell Professor John Hausknecht, and his colleague Charlie O. Trevor, in conjunction with Harrah’s Entertainment’s Michael Howard, looked at the differences between low performers and high performers, and the reasoning behind their decision to quit their job. They  surveyed 2,500 hospitality employees and covered all types: hourly, salaried, and managerial.

The results illustrated a split between high performers and low performers in terms of the reasons why they resign. The low performers tend to be unhappy with what could be called the ‘hygiene factors’ in a job, such as the hours, the work load, and absenteeism policies. These are factors that come up as justifications for low performance, but when righted result in no discernible increase in performance from the complainants.

Meanwhile, high performers leave because of opportunities in the market, career advancement, higher pay, and better use of their skills. The researchers found that higher pay is of course important for all employees, but it is more important to the high achievers, who are more likely to expect to be rewarded well for their good work.

Their modus operandi (MO) seems to be credit where credit is due, and given that they are delivering I suppose this should not come as much of a surprise.

Management Problems

Previous research has shown that people join companies for the brand, the status or the implied future, but they leave because of their manager. This research confirms this by saying that the supervisor is a major motivator for leaving, for both low-performing and high performing employees.

One thing that the researchers assumed before starting their actual research was that high performers would not be too bothered about problems with their managers. They thought that somehow there would be a shield that would protect the high performers but this was not found. Managers were not found to be the primary reason for high performers resigning but the issue came next after the major factors.

The final conclusion of the study was that you have to emphasize salary, advancement opportunities, and utilization of skills if you want to retain your highest achieving employees. But at the same time you need better training for managers because a manager’s relationship with their staff is a key driver in any retention program.

This research is not just a rough guide to retention issues during the current difficulties. All the elements of a HR retention and communications plan are laid out.