An Analysis of Employee Turnover Based on Behavioral Economics

With the deepening of China's social and economic transformation, companies are faced with an increasingly common phenomenon of employee turnover, which seriously impedes the development of companies. Based on the "irrational person" perspective of behavioral economics, this article analyzes the problem of employee turnover from Prospect theory, Anchoring effect and Mental account theory which are different from those of traditional economics, and illustrates how irrational factors affect employees to make a decision to quit, therefore companies can have a more realistic and reasonable understanding of the phenomenon of employee turnover.