Oct 19, 2005

HR consultant gives free advice on Attrition

Sanjay has some free advice for people fretting because of attrition:

In my opinion around 15% attrition is good for any organisation which is not growing its business more than 25% YoY. I say this because a company will never be able to create enough jobs for its good people in the organisation if they are not growing sufficiently enough. I also think that only your good people will leave because they will feel stifled by the lack of growth and the monotony of work as there is nothing new that they can keep doing in a static organisation. It is good to let them go as the organisation can't use their potential and it will seriously cut down internal conflicts and politics by letting go of people. The most popular way of accomodating such talent otherwise is to create job roles with no clear accountabilities and with overlaps with other jobs, this creates a lot of confusion in the organisation and a lot of fighting for turf.

Hence my simple thought is that when you have attrition look at it as a positive sign, especially if you are not growing. Look at the reasons why people moved on and get to the right reasons, other than compensation alone. This will help the organisation focus on the right things and the right people

Not many HR people think about attrition vis-a-vis their business growth. I think Sanjay makes a great case here. And you get the advice free, thanks to the blogosphere!