| Summary: | In 2009, the estimated number of residents in China was 1.331 billion, representing approximately 22% of the total world population. China is the world's most populous state and is in constant growth. This is also a market that offers huge opportunities. The major cultural differences between China and the rest of the world can often cause problems for companies that choose to expand in China. A major problem with the cultural differences is that Chinese employees feel that foreign managers do not understand the Chinese culture which is said to be the reason why Chinese people tend to change jobs often. Finding new skilled personnel is an expensive process for companies which makes this a huge problem for a lot of companies. This paper therefore intends to investigate how Swedish actors in the Chinese market could make their Chinese employees stay within the company. The purpose of this is to examine how they can motivate their employees to stay within the company to thereby retain skilled personnel within the company. Methodology: This paper is based on a deductive approach in which existing theories are reviewed and then examined empirically. The principal theories addressed in this report refers to the Chinese business culture, incentives and motivation among employees and also organizational Commitment. This is also the theories that form the structure of our interviews and our empirical study. The empirical part is based on semi-structured interviews conducted with companies that have business in China to investigate the reports phenomenon and to examine the theories discussed in the paper.! Results: The single most important factor to motivate employees to stay within the organization turns out to be salary. However, it also turns out that other measures as team building, training, personal development, cultural understanding, and more has a huge impact. The study also shows that those companies that meet the most steps in Maslow's hierarchy of needs and thus also meets most of its employees' individual needs are also the companies that have the lowest staff turnover.Key words: motivation,
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