Don't stay in a firm beyond two years...

If you are in a firm beyond two years, you may be making a huge mistake.

Let's break it down:

1] Why two years?

2] Why is it a mistake?

Any new hiring is an investment from both sides.

Firm's Side

The firm spends sufficient bandwidth in crafting the job description, understanding the role, conveying it to internal or external hiring teams, running the search and interview process, making an offer, completing joining formalities and inducting the person into the system.

It is a costly process from a firm's perspective - bandwidth and investment made.         

An untimely attrition means business and investment loss. Typically, in 24 months period, the ROI is met.

Candidate's Side

The candidate is in the market for primarily two reasons - they are not satisfied in their current job or they have hit a point where they don't see much growth. Either way, they have to spend a lot of effort to get their next job in the market.

Learning on the job is a crucial factor.

It takes roughly 24 months to learn a new skill, get execution experience and also to build a good network.         

So net-net, two years is a good timeline to stay in a firm from both sides.

Why is it a mistake to stay in the firm beyond two years?

The dynamics of the relationship change after two years.

The firm knows they have already got the ROI on hiring. They may be OK if the candidate leaves.

The employee also has a stable work experience in their CV. They have also had sufficient learning and leaving is not an issue.

The right question to ask is, beyond two years:

1] Why should a firm like to retain an employee?

2] Why should an employee stay?

The answer lies in "Value Perception" and "Value Creation".        

Value Perception

If the firm feels that the employee has much more to offer, they have a positive value perception about them and would like them to stay longer. Some factors that influence this perception include:

1] Certain Skills & Knowledge

2] Potential to deliver complex work

3] Possible Leadership Pipeline

4] Key dependencies

5] Positive client relationships

Value Creation

If the candidate feels that by staying in the firm, they can create substantial value for the firm and themselves, they will stick around longer. Some factors that influence this perception include:

1] Expected Growth and Compensation

2] Stable and trustful Network

3] Visibility of future projects

4] Possibility of future leadership role

5] Being part of the Power System

Remember, it is a huge mistake to stay beyond two years if there is no Value Perception or No Value Creation.

These aspects are not straightforward to understand or execute. Hence, most people take the easy way: A unilateral dimension of deciding to stay or leave based on compensation another firm offers or the current firm's inability to meet it.

The above strategy may work for a while, but won't at mid to senior position.

For long-term success: Better get a handle on the Value Perception/Value Creation angle based on which side of the table you are on.        

About the Author

Rahul Gupta is the founder of Transform Ahead??, a world-class Coaching and Leadership Development institution. He is an ICF Professional Certified Coach (PCC) and an Everything DiSC? certified trainer. Rahul is a published thought leader and his articles have been featured in Entrepreneur, Money Control, Business World and CFO Connect.

About?Transform Ahead??

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