A Case Study On Employee Turnover Of Company M

Human resources is the most critical core competence of the company. If a company can make scientific use of human resources, it will help to overcome the bottle neck and achieve the long-term development strategy. On the other hand, the human resource competition is more and more severe, and employee turnover became a big problem for a lot of companies.Group M is a world-famous company researching and producing carbide tools. To expand the business in APAC, Group M established Dalian Branch in 2007. With 8 years' growing, Company M became mature enough to run its own business. So Company M restructured its organization, ready to face the long-term strategic adjustment. But due to the lack of experience in human resources management, employee attrition rate is too high to influence the business. If no effective action taken, Company M may lose its core competence in APAC, which is irrevocable.This article is a case study on the employee attrition problem of Company M. Firstly, it describes four cases about the employee attrition of the company, then analyzes the reasons based on the human resources management theories and practices learnt in MBA courses. The reasons include incomplete performance management system, unreasonable compensation policy, unscientific company culture, undefined career development management. Lastly, the article raises some proposals to solve the problem, which includes completing performance management system, rebuilding compensation policy, establishing diversified company culture, defining career development management. These solutions can not only recover the problems in human resources management in Company M, reduce the attrition rate and enhance the loyalty of the employees, but also provide some reference and help to the similar companies with similar problems on human resources management.