Thursday, March 1, 2007

Churn and what it means

In the business world, hiring people while laying off others is called churn.

As I pointed out in an earlier post, Netshops laid off 60+ employees 2/1/07. This was done because they've "gained some efficiencies" according to Doug Nielsen (per the Omaha World Herald article).

If they've "gained some efficiencies" then why are they hiring more folks?

"Churn" (also known as "attrition") is a term used commonly to mean all kinds of departures from companies, including voluntary resignations and those fired as well as those laid off. Looking at the intentional churn created solely by layoffs gives insight into how much companies are controlling how their workforce changes. - Mercury News 12/21/2006

Was this layoff a tactic to appear more profitable? If so, maybe upper management doesn't fully understand the cost of an employee. Were some of those individuals let go due to be released based on poor performance? Possibly. Were any of them told about their poor performance? Only one that I've heard about - and that was through her comment on this blog. If the employees let go were distracted, unmotivated or just simply in the wrong position, perhaps a solid career path would have helped motivate them. (At least, that's what an article from Inc.com suggests. What would they know? They only put out the annual list of the 500 fastest growing US companies.) With as many reorgs as I was part of in the time I was there, it was tough to figure out what my current responsiblities were, much less where I was headed six months down the road. I can't imagine I as the only one who felt that way, but maybe I was. Despite this, I think I was still motivated to do a good job every day - staying late, taking on extra responsibilities and in general trying to go above and beyond what my job description called for. Maybe this wasn't the case? Who knows - I certainly wasn't told about any areas I was lacking in. Based on my most recent review, I was an 'above average' employee. (I was above average on my previous reviews as well.) Too bad that doesn't equate to job security these days.

As always, feel free to email me or post your comments. I look forward to hearing from you!

1 comment:

Globe Guy - World Globe Reviews said...

Hello laid_off_by_netshops,

What were your responsibilities at Netshops?