This is a YouTube video titled "What Is Employee Retention and What Is an Acceptable Rate?🤔 | Matthew Ryder" containing a monologue or talk discussing employee retention rates, turnover, and related concepts such as the Peter Principle and sales hiring challenges. The content appears to be a single speaker explaining these topics, likely Matthew Ryder, given the title.
What is employee retention? And like what's acceptable? For example, across a company, the average retention of employees is 12%. So it means that you lose 12% of your staff every year. So you're going to turn them over, which is fine. Like a certain amount of employee turnover I think is a good thing because it sort of brings in new thought and you don't want to only internally promote. Not to say that you shouldn't do any internal promotions, but you don't want to exclusively internally promote. The reason is because everyone kind of thinks and feels the same way then. And so that kind of creates an echo chamber of the same stuff over and over again. So you tend to sort of stagnate as a company. There's a called the Peter Principle, which talks about promoting someone to a state of incompetence. So it's an average of 12% across most companies. However, in sales it's around 30% because sales is performance based and people have a tendency to over hire. Now why do you over hire in sales? Because it's very difficult to know if someone's good at sales until they're just good at sales.
