Keeping Our Best: Econometric Analysis of Retention and Performance at Engineering Solutions

Abstract

This study analyzes the retention and performance of 100 engineers who started work at “Engineering Solutions” in 1996, of whom 65 were still with the firm in 2002. The retention analysis shows that the firm retained disproportionately the better performers, those with the psychological attributes that make for greater success, those with greater work attachment, and those with fewer dependent-related job issues. The performance analysis shows that the top-rated engineers are primarily those who exhibit favorable psychological characteristics, that a few other characteristics make a small difference to performance, and that the remaining variables make no difference at all.