The current study explores the relationship between Confucian principles, organisational structure and
employee retention in a Chinese context. An examination of relevant literature identifies Confucian principles, as a key reason for the divergence of Human Resource Management (HRM) practices in China from
comparable practices in the West. Research has predominately focused on contrasting these issues rather than
focusing on developing a greater understanding of HRM practices which incorporate unique Chinese
characteristics. Due to current high skilled employee turnover rates, employee retention is an area of HRM in
China which urgently requires the development of effective HRM practices. The current study explores the
relationship between employee turnover organisational structure and Confucian principles. A qualitative
research methodology is employed involving the interviewing of a sample of 23 organisational members from
‘high demand’ job categories. Results identify several important issues relating to organisational structure and
its perceived impact on employee turnover. These issues are discussed and areas for future research are
proposed.