Effects of psychological capital on employee turnover intentions

Abstract

According to the statistics provided in “2014 Turnover and Salary Survey Report”, the average turnover rate in Chinese companies remains high at 16.3 %. In addition, the statistics in “2015 Food Industry Salary Management White Paper” show that the voluntary turnover rate in the Chinese food industry has increased to 35 %. Among these, younger employees have the highest turnover rate, reaching above 40 %. It is well known that high turnover rates have a negative impact on the operations of companies. Ensuring the stability of personnel and the successful adaption of employees to their positions is a crucial topic in human resource management for Chinese companies. “Our company has a comprehensive human resource management system and has been investing heavily in human capital development. However, we have not been able to reach the expected target performance; the turnover rate remains high and the employees lack enthusiasm for work.” For companies with such an issue in human resource management, motivations are provided for practical applications of the concept of psychological capital by analyzing the operation of a Chinese restaurant chain “Hai Di Lao Hot Pot” as a case study.