Shanghai Silk Pharma Ltd: Employee Turnover

Abstract

This case highlights the issues of employee turnover and retention in a Chinese private sector pharmaceutical company. It discusses the reasons of high employee turnover and the company’s approach to retention. While the case shows that individual–company fit and individual–work fit affects voluntary turnover, it also highlights the importance of financial and non-financial incentives and measures to improve employee retention. It also discusses issues of high-power distance and guanxi that are unique to China. Overall, the case brings to light different organizational choices and strategies to address employee retention.