Employee turnover and perception of incentive: A cross-cultural comparison between China and Australia

Abstract

Turnover is one of the most studied behaviors in human resource management. Hofstede's framework for assessing culture is one of the most influential and frequently quoted ones. In this research, we applied Hofstede's cultural dimensions theory in human resource management problems and analyzed the cultural influences on the employee turnover and perception of incentive between China and Australia. Generally, results showed that the Chinese employees had lower turnover intention than the Australian employees. Compared with the Australian employees, alternative job opportunities had less impact on turnover intention of Chinese employees. Chinese employees regarded career prospect as more important motivating factor, while Australian employees believe that the work itself motivated them better. This empirical research supported three dimensions of Hofstede's cultural dimensions theory.