Smes Brain Drain Problem And Countermeasures

Small and medium firms play significant roles in our economy.However, these firms are suffering from high employee turnover in theprocess of their development. After China's ascension to the WTO, it hasbecome increasingly important to solve this issue. The paper attempts toexplore this issue in the light of HR development and management theories.The author first analyzes the current situation of employee turnover in smalland medium firms and the impact on these firms. Then the author focuses onthe study of one particular firm – WL, using data collected throughquestionnaires. Based on the results from data analysis, the author identifiesthe reasons of employee turnover in small and medium enterprises andsuggests ways to resolve the issue. This paper has the following features:1. The combination of questionnaire and interview method is used togather objective and real data to search for the reasons of high employeeturnover. The ratio of collecting questionnaires was 91.49%.2. HR theories are applied, which offers a sound theoretical frameworkfor the study.3. The ways to solve the high employee turnover problem are integratedinto the firm long-term planning.The case of WL Company has implications for addressing employeeturnover in small and medium firms.