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A psychological explanation on the effectiveness of "Pay to Quit" incentives with regards to employee retention

  • Successful employee retention remains one of the most critical issues in human resource management. Various retention strategies have been proposed, examined, and empirically tested for centuries to retain valued employees. This research proposes a psychological explanation on the effectiveness of so-called pay-to-quit incentives and hypothesizes that such anti-incentives might be more beneficial than traditional incentives with regards to employee retention. Cognitive Dissonance Theory, Prospect Theory, and Social Identity Theory help to illustrate the underlying psychological mechanisms of pay-to-quit incentives and their impact on choice, attitudes, cognitions, and behavior.

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Author:Victoria Tschorny
Advisor:Armin Trost
Document Type:Bachelor Thesis
Year of Completion:2020
Granting Institution:Hochschule Furtwangen
Date of final exam:2020/08/31
Release Date:2020/10/06
Tag:Anti-incentives; Cognitive dissonance; Employee retention; Employee turnover; Pay-to-quit incentives; Prospect theory; Social identity
Page Number:30
Degree Program:BMP - Business Management and Psychology
Functional area:Human Resource Management
Licence (German):License LogoUrheberrechtlich gesch├╝tzt