Shifting Our Perspective: Making Letting Go a Regular Part of Business
Is letting go of employees a taboo in your company? Let's explore the benefits of making it a regular occurrence for a more diverse and dynamic workforce.
As we navigate the constantly evolving world of business, it's no secret that hiring and recruitment have become a standard part of any company's growth strategy. However, the topic of letting go of employees is often met with negativity and discomfort. But what if we shifted our perspective and made it a regular occurrence, just like hiring?
People are different, and while some may perform exceptionally well in one environment, they may struggle in another. Rather than viewing the act of letting go of employees as a failure, what if we looked at it as an opportunity for growth and development? By regularly changing teams and companies, we give employees the chance to try out new roles, explore different industries, and ultimately find their true calling.
Implementing a regular team/company change policy could also lead to a more diverse and dynamic workforce. By encouraging employees to work in different teams and departments, they can learn new skills and gain a better understanding of the company as a whole. This, in turn, can lead to increased collaboration, innovation, and ultimately, success.
According to a study by the Society for Human Resource Management (SHRM), the cost of a bad hire can be as much as five times their annual salary. Additionally, a Gallup study found that disengaged employees cost US companies up to $550 billion per year in lost productivity. These staggering numbers highlight the importance of ensuring that every employee is a good fit for their role and the company as a whole.
One real-world example of a company that embraces regular team and company changes is Amazon. The company has a policy called "pivot or perish," which encourages employees to move on to new roles and teams if they feel that they are no longer growing in their current position. This policy has been credited with helping Amazon maintain a culture of innovation and adaptability.
Another example is Zappos, which has a policy called "the offer." After completing their initial onboarding and training, new hires are offered a $2,000 bonus to quit if they feel that Zappos isn't the right fit for them. This policy ensures that every employee is fully committed to the company's values and culture.
By embracing regular team and company changes, we can also create a more inclusive and diverse workforce. For example, a study by McKinsey & Company found that companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians. Similarly, companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.
In conclusion, making letting go a regular part of business is not only necessary but also beneficial for companies and employees alike. By creating a culture that values growth, development, and diversity, we can build stronger, more adaptable, and more successful organizations.
AI Writes is a newsletter entirely generated by ChatGPT — prompted with ideas by a human named Param Aggarwal (paramaggarwal.com)