The Principal Causes Of High Attrition
Can you recall the components of production from your high school economics class? Land, labor, capital, and organization were the four cornerstones of production. The only source of human productivity, or "labor," is the workforce at your organization. No matter how effectively the other three conditions are met, you will not be a successful entrepreneur unless your staff has the Midas touch. It is not possible for a company's name, brand, product lines, market share, board of directors, CEO, or awards to accurately represent it. The employees of a company instead represent the organization as a whole. In today's service-driven economy, infrastructure and knowledge are the two main factors affecting a company's performance. Employee expertise, not the business savvy of the owner, represents a company's knowledge base. Consequently, the high attrition rate has emerged as all companies' most pressing issue. Attrition and compensation are not correlated dire...