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A Redundant KPI

Attrition rate. What a redundant KPI that is! Measure the cost of failure in leveraging employees' competencies and talent and compare that with the cost of hire. If you do that, you will immediately remove this KPI from your list.


The only reason recruitment costs us is because we don't know what to do with talent. The cost of hiring can be easily offset by leveraging people's talent even if they are with us for three months.


Here are some examples. If you hire:

  • A waiter who is naturally good at selling and sells two bottles of champagne, each costing $50K, but only stays for a month, your recruitment cost is offset.

  • A marketing executive who changed the way we do marketing and the new set-up yields 20% higher revenue but only stays for six months, your recruitment cost is offset.

  • A manager who implemented new procedures that made 28 people more efficient and effective, resulting in 30% higher productivity, but stayed only for six months, your recruitment is offset.

  • An engineer that designed a plan that will make your company millions of $ but stayed only for three months, your recruitment is covered.

  • A receptionist who automated guest replies and saved hundreds of hours of work but stayed for a week, your recruitment cost is offset.

  • A barman who bought his crowed with him, resulting in thousands of $ extra revenue, but only stayed for four months, your recruitment cost is offset.

  • A chef, who implemented a food waste management program saving hundreds of thousands in the future but only stayed for eight months, your recruitment cost is offset.


It is not about how long people stay. I know people staying for decades, and they have very little use, I would even risk to say it, they only cost the company.


It is about what they do while they are with us, but for that, you need to know how to leverage talent and how to recruit. If you are not good at these two things, you will be measuring the attrition rate.


Oh, and you also have to understand that you are not paying people for their work hours. You are paying them for their talent & expertise, so why are you leaving them on the table and instead focusing on something you cannot control?


Do you fancy reading other nonsense practices? Here is my book:




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