NECESSARY MEASURES
Metrics that Determine Success
This is arguably the most important information on this entire website. The principle reason there are a lot of ineffective and contradictory strategies for addressing employee turnover is that nearly everyone is measuring the wrong thing. Headcount turnover alone is an extremely misleading measure.
Our research based on actual business performance clearly indicates that the amount of experience lost is much more critical than the number of bodies. More importantly, experience relative to process complexity determines a business' capabilities.
The graph below represents a typical evolution of a business wherein its' process complexity and aggregate workforce experience both increase over time. As long as there is an appropriate level of experience to support the process complexity at any given time the business will perform optimally. Layoffs, retirement or other attrition causes often have greater impact on senior employees. This can create a tenure deficit with significant consequences.
