"About 40% of Chinese employees stay in one job for less than two years, according to a Hay Group study. In India, annual turnover of 50% or more is not unusual. That's clearly a problem, not only because constantly recruiting and training people over and over again is expensive, but because it's disruptive. Continuity, let alone growth, can be tough to maintain when half your team is made up of brand-new faces every few months."
"So it's a real competitive advantage that Abbott's turnover in China is under 20%, or about half the average for the country. In India, it's even lower, at about 15%. How do they entice employees to stay? Senior managers at the company say Abbott's approach is threefold: Put local managers in charge."
Abbott Laboratories generates approximately one-third of its worldwide revenues from Asia, with substantial growth driven by $5 billion in investments since 2009 across manufacturing and acquisitions. The company operates 26,000 employees in China and India, planning to add 4,000 more annually. While Western multinationals face typical Asian labor challenges—Chinese employees average 40% turnover within two years and Indian turnover often exceeds 50% annually—Abbott maintains competitive advantages through strategic retention practices. Abbott's turnover rates stand at under 20% in China and approximately 15% in India, substantially below regional averages. This retention success stems from a threefold approach emphasizing local management, career development, and inclusive workplace culture, enabling Abbott to maintain operational continuity and support sustained business expansion.
#employee-retention #asian-markets-expansion #workforce-management #multinational-strategy #labor-turnover
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