Unregretted Attrition Target?

Sep 10, 2019 4 Comments

Why do companies have this target? I.E, fire x% of their employees every year? I’ve heard different percentages, including 6% and up to 20% at times. What is the rationale behind this?

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  • Amazon / Eng
    bCxp50

    Go to company page Amazon Eng

     bCxp50
    The basic theory is that some number of employees are consistently producing less (probably considerably less) than the value they bring (dead wood). In particularly bad cases or large quantities, they're also affecting the productivity of others around them, as well.

    In reality, it's never quite that simple, and the ratios are never quite right. Even so, unless you've worked in an organisation with a lot of dead wood yourself, it's difficult to appreciate that it's better than nothing.
    Sep 10, 2019 1
    • Splunk
      TheBackend

      Go to company page Splunk

      TheBackend
      That’s the GE theory. In practice everyone loses a sense of psychological safety at work and the place becomes a competitive rat-race appealing only to certain personalities.
      Sep 11, 2019
  • So they can keep hiring
    Sep 10, 2019 0
  • Amazon
    iSteveJobs

    Go to company page Amazon

    iSteveJobs
    So that they can find tax loop holes using the unvested stocks.
    Sep 10, 2019 0