Attrition is one thing which means a very different thing between Leaders, Employee, HR and Stakeholder. It’s one of the most complex topics and single biggest indicator of so many things in the organization. As a leader, following things to be looked into for correct attrition. AI makes attrition even more skewed indicator. Leaders need to grasp those indicator and act upon it. This make leaders frequently take decisions which are quite contradictory to some or other expectations.
Leader challenges with Attrition
Should attrition be lower or higher relative to last year.
Is your attrition is because of internal reason or industry as a whole or market as a whole.
Is high attrition because of low salary or quality work or work culture.
Is low attrition because of high salary or poor skill or both.
Is attrition as good as layoff for organization
How to calculate good attrition
Does attrition help you get new skills.
Now some AI specific challenges
AI models available in market is going to drive attrition, hiring, reskilling or training.
Has AI stopped attrition in specific work area as it can be fully automated.
Has AI increased attrition in specific work area because it has increased demand of certain deep skilled resources.
Simple Analysis and Solution for AI Attrition
Low Attrition: If you are experiencing very low attrition, it may mean there is an alternative way to work has evolved. This means very soon your product will start costing higher in the market. You need to train resources on latest technology trends. So, your organization remains competetive in the market.
High Attrition: If attrition is high, it means you have some key resource and framework, which is required in larger setup. It’s time to get some partnership who have vision for next generation.
AI Attrition vs Layoff
Layoff is function of not training your resources and then eventually becoming incompetent in market. Eventually layoff resources.
Attrition is positive thing; you trained your resources in latest technology. Some of the resources will leave for greener pasture. You will hire some, its a part of life.
How much Attrition is good.
If you are able to hire the resources of similar skill in relatively same cost (+-) 20 percent. Attrition is good. This is key aspect. If you impart lot of new skills to very junior resource, you have a failed business model as hiring is difficult. If you train too senior, he will not be able to leave, and you have underutilized resource. Key element is train little senior and commited resource.
Allow Attrition for new skills
This is unlikely proposition, you are either loosing skill or very cost effective resource. However, if your resources are moving or stuck because of old tech. You need to hire few high skilled resources to train them and motivate your team.
AI can work on USP.
There is very difficult scenario that happened in Digital Art where AI can do lot of work which was done manually otherwise. There is need for key direction which is going horizontal or vertical. It depends on the resources you have.
Key Takeaway
Target Attrition and NOT Layoffs: If because of AI you happen to do layoff, its a big miss. If you could have trained resources, then one of two or both might have happened.
They have created wonderful solution, and business will be able to hold on them.
Few would have left already with minimal requirement of layoffs.