| Multinational corporations that employ Western style of | | | | This paper analyses the relationship between human |
| human resource management strategies are | | | | relation management incentives in Chinese companies |
| perceived by Chinese workers as a significantly more | | | | and the level of turnover. We present a case study of |
| perspective path for carrier development. The top five | | | | Ping An Insurance (Group) Company, Ltd., the |
| methods that can be used successfully to attract and | | | | country’s first joint-stock insurance company that |
| retain Chinese staff and in such way decrease labor | | | | integrate securities, trusts, banking, asset management |
| turnover rates include: attractive salary and benefits | | | | and annuity services. Analyzing human relations |
| packages, about 23 per cent, opportunities for future | | | | incentives and labor turnover from years 1999 to 2005, |
| carrier development, about 19 per cent, creative work | | | | we estimate existence of correlation between job |
| that creates meaning to workers, 7 percent, and | | | | level and time employed in the company, and salary |
| company location, 3 per cent. | | | | and time employed of company employees. We |
| There are considerable differences between Western | | | | subdivide the sample period into five sub periods: from |
| human resource management style and Chinese | | | | 1999 to 2001, 2000 to 2002, 2001 to 2003, 2002 to |
| human resource strategies: while Chinese HR | | | | 2004, and 2003 to 2005 in order to analyze the |
| practices tend to be more autocratic as compared | | | | influence of specific human relations incentives on the |
| with similar strategies in the West. Despite the fact | | | | labor turnover rates. The paper is organized as |
| that multiple studies report high degree of | | | | follows. In the next section, we present a literature |
| effectiveness of human resource strategies used in | | | | review of the recent studies on the differences |
| Chinese companies, there is some controversy | | | | between human resource management strategies in |
| surrounding the issue fur to methodology employed. As | | | | the Western countries and China; we also provide a |
| such, there is a distinct need to take an insight into the | | | | theoretical background on the issue of labor turnover. |
| management practices employed by Western | | | | Next, we discuss the method used for assessment of |
| companies and Chinese enterprises in order to | | | | the risk of portfolios and present information about the |
| estimate existence of the correlation between | | | | source of data used, longevity of the period, and |
| management strategies and labor turnover. | | | | frequency of the data. |