Press Release

Compelling Career Opportunities--Not Pay--Promote Retention in China
    China HR Executive Board Uncovers Key Drivers and Strategies to
               Reduce Turnover in China by More Than 20%

SHANGHAI, China--(BUSINESS WIRE)--Nov. 4, 2008--Employees in China don't leave their employers because they feel underpaid, they leave when they think they have little opportunity for development and career advancement, according to a new research study from the China HR Executive Board. The Board is a membership program of the Corporate Executive Board (NASDAQ: EXBD) and a leading provider of employment brand analysis and best practices research for HR executives in the Asia-Pacific region.

Allan Lu, Country Manager for the China HR Executive Board, comments, "Organizations are focused on the pressures they face in China's competitive talent market--one-third of employees are at high risk of turnover (twice the global rate), frequent poaching, and spiraling salaries. Pay is often cited as a top driver of retention when, in reality, it has merely an average impact on retention. While organizations must have a competitive pay scheme to attract and retain talent, pay will not secure loyalty. In this environment, the only way to stem the turnover problem is to understand the most important drivers of retention and deliver a compelling, holistic employment offer built around them."

Three Imperatives for Reducing Turnover in China

The Board's labor market research, Managing Employee Retention in China, pinpoints the most important drivers of employee retention in China and highlights emerging best practices to reduce turnover. The results are based on analysis of the Board's proprietary Employment Value Proposition (EVP) framework and China labor market survey, in which nearly 60,000 active employees from across mainland China participated. The survey sample represents largely professional employees from 20 industries, 17 corporate functions, and 3 city tiers.

China's younger, less experienced employee pool is looking for employers who can offer them a compelling career with defined developmental opportunities. The Board's findings point to three retention imperatives for multinational corporations operating in China:

(1) Don't Overemphasize Compensation. Many employers try to retain their staff by "out paying" the competition. Unfortunately, their focus on pay is missing the mark and wasting money. While organizations must remain competitive on compensation, high pay will not offset a weak overall employment offer.

(2) Help Employees Build Careers. The single biggest driver of retention is future career opportunity, which improves retention by up to 21%. Employees want to have a vision of how their careers can develop at an organization, and they want to see frequent evidence of progress. Although it is important to provide competitive promotion rates, (almost) equally important is to offer development plans and training that connect employees to the organization's long-term values and strategies.

(3) Focus Managers on Three Key Roles. Managers have a unique responsibility to engage employees and prevent turnover--effective managers can increase retention by as much as 19%. The Board's research shows that the highest returns accrue when organizations can improve manager effectiveness in three roles: career steward, project manager, and persuasive leader.

About the China HR Executive Board

The China HR Executive Board is a leading provider of employment brand analysis, best practices research, and decision-support services to executives with responsibility for HR in the Asia-Pacific region, as well as their staff. The Board has a proprietary database of more than 100,000 labor market participants in China and India, allowing for detailed analysis of organizations' Employment Value Propositions (EVP). Published studies and best practices include Accelerating Leader Development in China, Focusing Managers on Talent, Managing Employee Retention in China, and Building Compelling Career Paths in China. Additional information on the China HR Executive Board can be found at

About the Corporate Executive Board

The Corporate Executive Board Company is a leading provider of best practices research and analysis focusing on corporate strategy, operations and general management issues. The Corporate Executive Board provides an integrated set of services currently to more than 3,700 of the world's largest and most prestigious corporations, including more than 80 percent of the Fortune 500. These services are provided primarily on an annual subscription basis and include best practices research studies, executive education seminars, customized research briefs, and Web-based access to a library of more than 300,000 corporate best practices. More information can be found at

    CONTACT: Corporate Executive Board
             Joni Renick, +1-571-303-4074

    SOURCE: Corporate Executive Board Company