Relationship between a desired attrition and incidental attrition.
When I
look at how attrition has been categorized, I see two ways, if not more;
voluntary vs. involuntary and functional vs. dysfunctional.
Up or out
philosophy vs. life-time employment firms, rare skills and hard to build
competencies to average operations skills, what suits your business and
structure can be very different. Company A's top performer joins company B and
here he becomes a poor performer and then he moves out or is shown the door.
Puzzling to categorize this attrition. Attrition driven by culture and business
and people values? Lot many companies wish, their identified laggards and
petered out (On whom Peter Principle has applied) leave but they remain there,
creating glass ceiling for a performer and then he quits looking for a place
that provides growth opportunities. Here I see a relationship between a desired
attrition and incidental attrition. All companies would agree that their
desired attrition shall be 'x' percentage, identified by stack ranking people
and then planning a counsel out approach for them. Look at how Microsoft has
planned for 18,000 people over span of 2 years. This gives a clear idea that
companies have a 'Desired'
rate of attrition
that is expected and worst comes that when this does not happen 'Incidental' attrition takes place where people who want
to move up and want to work with smarter set of people, move to a smarter and
progressive company that follows 'meritocratic' culture. Incidental attrition
sometimes takes place within weeks of joining. I have normally categorized
attrition into 2 brackets; Induced by internal factors vs. triggered by
external factors. Simply put, "to get out of here' vs. 'to get in there'.
There will always be companies for good people. Good people need good people.
Other type of attrition is 'aspiration-led' attrition. Here I have seen
employees jump 3 companies in 2 years or less. Market inequality creates
attrition due to its own brand value that simply means, better standing in
society, better pay and benefits, lots of other privileges. Can we blame any
company for being so rich and fancy causing attrition at other places? Can we
blame a company for been less rich and not providing high-end benefits and
social/corporate standing or ‘prestige’ as Vault.com says is a reason for
ranking consulting organizations by employees or candidates.
Voluntary
attrition highlights what is ‘ignored’ in the organization as well as what is
made available by competitors. All a matter of choice and decision of
leadership.
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