Managers should consider two standards - knowledge and the destination of departing workers - when determining how best to handle worker turnover. There are four distinct scenarios. In the first, employees with familiarity that is certainly generic or of low strategic importance leave to join competitors. This hampers the productive capability of an organization, while increasing that of its rivals. Defensive plays (for example enhancing employee benefits) are recommended. In the second scenario, employees possessing knowledge that's low tactical relevance depart to join cooperators.
Companies are advised to adopt relational activities to maintain positive relationships with these former employees. The third scenario - workers with strategically significant, firm-specific knowledge resign to take jobs with adversaries - is potentially the most damaging type of turnover. Companies might highlight retaliatory actions (like the threat of lawsuits to enforce non-compete clauses in contracts) in addition to defensive maneuvers to keep critical employees. In the fourth scenario, workers with strategically significant, firm-specific knowledge leave to work for cooperators. But this can also lead to opportunities for companies to expand their social capital with significant clients and providers. Consequently, when defensive maneuvers neglect, a business should consider adopting a relational approach, maintaining positive relationships with departing workers as they transition into their new jobs.
Rethinking the 'War for Talent' case study solution
PUBLICATION DATE: July 01, 2008 PRODUCT #: SMR284-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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