YM Company’s Employee Resignation Case Study

With the increasing development of technology, talented employees aregetting more critical to an enterprise. Talented employees are thefundamental of an enterprise and to some extent the competitions betweenmodern companies are equal to the competitions of talented employeesbetween rival companies. It is true that having abundant capital is quiteimportant to a company, but without the existence of talented employees,it is impossible to create more values. In order to exist and develop,an enterprise should not only keep the current business running, but alsoneeds to be increasingly creative in the harsh market competitionenvironment. None of daily business and technology creation could beconsistent without the accomplishments of talented employees in thecompany. Bill Gates, the founder of Microsoft, used to say that “If20of our most talented employees were poached, then I could tell you thatMicrosoft will be valueless.” It could conclude the significance oftalented employees to a company form his words. Therefore, how to selectits employee, how to use its employees, how to train its employees andhow to keep its employees are becoming very important to a company.With the development of global economy over the years and adjustmentof international division, BPO industry brings a new business chance tothe developing countries. BPO，that is Business Process Outsourcing,means one part of business process is outsourced to a supplier and thesupplier will provide services to the company according to SLA. At present,China has become the second biggest outsourcing receiver after India. BPOCompany’s major business is different to the traditional manufactureindustry, because it provides high qualified services to its customer byreducing cost and improving efficiency. That’s the reason why it is rather important for a BPO company to keep process stability and to becreative in the meantime. During this period, if high resignation rateof employees occurs, the process stability and efficiency will be affected.In addition, the cost resulted from recruitment and training for newemployees will be increased. The clients and their information will evenbe lost and leaked. And all of those will affect the company’s sustainabledevelopment.This paper analytically studies the case of company YM which runs BPObusiness to Japan. It begins from a situation where HR department of YM,was faced with high resignation rate. This paper describes how a newemployee resigned from her company and also describes situations such astalented employees’ job-hopping. In order to objectively and accuratelyanalyze the fundamental cause of resignation in YM, a questionnaireregarding all the reasons of resigned employees is analyzed and interviewswere also took with some resigned employees. On the basis of this, by usingexisting theories such as Price-Mueller（2000）Model and Cross-culturalmanagement, it is concluded that major reason of YM employees resignationsare due to encouragement factor in the company. In the meantime, in orderto thoroughly resolve the current high resignation rate in YM, a solutionto it is providing in this paper. That is to establish a reasonableencouragement system and to reduce affects of the cultural differences.The result of this analysis has significant meaning to the solution ofhigh resignation rate in YM and it will provide references to the companywhich has or will have similar cases. In the end, it could enrichcross-cultural human resources management theory.