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4/19/2007

organisations can suffer from stroke

Staunching the legal bleed. Lawyers are running to join the private sector. 6.55% attrition rate. Horrors. It is good that a 10% salary hike is on the way. Maybe more with the next adjustment end of the year. With the Civil Service facing a 4.8% to 5.7% attrition rate, some departments going as high as 25%, it is necessary to do a quick fix. I would think a 20% or 30% increment would do the job nicely. Departments or Ministries with high attrition rate should accordingly be adjusted with higher pay hikes. Those with lower attrition rates should naturally get lower pay hike. According to the MSM, the attrition rate of banks is 20-25%. And the banks said it is normal. Probably not proactive enough. And for engineers, they reckoned 10% is the norm. A HR consultant commented that 20% is healthy as it provides room for renewal. I think this is a matter of opinion. I will be more comfortable with a 10% renewal rate. 20% is a little on the high side and certain industries, too high a turnover may not be healthy. But it is also very unhealthy to have too low a turnover. It is actually bad when the organisation is paying so well or so comfortable that no one wants to leave. Then a lot of inbreeding and old habits and old thinking will be perpetuated to preserve the system and the incumbents. And the top all got clogged up leaving little room for the new blood to move up. I have experienced with certain organisations where senior managers were kicked upstair or somewhere to do sweet nothing and all refused to leave because they were still being paid very handsomely. Some turnover is healthy, definitely. And anything less than 10% is nothing to panic about.

2 comments:

Matilah_Singapura said...

I would like to see a 100% attrition rate. The idea is to shrink the govt to zero or near zero as possible and have the private sector run Singapore.

Too much govt is hazardrous to the health and freedom of the nation.

For example, in the USA most of the school shootings occur in STATE schools.

redbean said...

this one i have to agree. but not 100% attrition rate. there must be some govt but not 100% govt.