To address the headache encountered by many multinational companies in China retention of their Chinese employees, this study first examined the current Chinese labor market, identifying the unique characteristics of the market mainly comprised of university graduates and experienced white-collar employees; then tried to explain the reasons behind employees departures from a perspective of deep-rooted Chinese cultures; in the end, proposed effective and efficient solutions for retention purposes. All the proposed solutions aim to address key human resources management concerns, including compensation management, talent acquisition, performance management and communication. This study examined the best practices in employee retention adopted by a large number of successful multinational players in the Chinese market. Some of the names from the list are IBM, Motorola, Intel, HSBC, Shell and British Petroleum (BP).