Why Your Turnover Rate Is a Business Strategy Problem, Not an HR Problem
P&C; — PEOPLE & COMPENSATION Scott Gillespie P&C; — PEOPLE & COMPENSATION Scott Gillespie

Why Your Turnover Rate Is a Business Strategy Problem, Not an HR Problem

You sit in your office, staring at the resignation email from your most reliable technician. They aren't leaving for a huge pay raise or a fancy title at a Silicon Valley startup. They are leaving to work for your direct competitor down the street for an extra two dollars an hour and a clearer schedule. Your first instinct involves frustration, followed quickly by an urge to call your office manager and demand they "fix" the hiring process. You view this departure as a human resources failure—a breakdown in recruiting or a lack of employee loyalty. This perspective is a comfortable lie that prevents you from seeing the truth. High employee turnover is rarely an HR problem; it is almost always a business strategy problem.

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Why Revenue Is a Vanity Metric and Profit Is a Strategy
Scott Gillespie Scott Gillespie

Why Revenue Is a Vanity Metric and Profit Is a Strategy

You stand at a networking event, drink in hand, and someone asks the inevitable question: "How’s the business doing?" You puff out your chest and mention your top-line revenue. "We're on track to hit $6 million this year," you say. The people around you nod with respect. They are impressed. You feel like a success. But when you get home and look at your bank balance, the feeling vanishes. You have millions flowing through the business, yet you struggle to cover payroll, your taxes are a constant source of anxiety, and you haven't taken a real distribution in months. You are living the "Big Revenue Lie."

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