I’ve seen the induced attrition, but with control. So let’s say the company on a ‘healthy’ year gives out a 14% bonus to everyone (and the salary is calibrated with the expectation of that large bonus). So they decide they want attrition, sorry, they can’t afford the bonus that year, everyone just has to learn to do without. Ok, disastrous, except they also identify some key folks and give them like 30% bonus in stock that vests over two years and/or a cash bonus with a clause that they are entitled for that to be paid back if the employee quits. So those people manage to get the same money (or more), though with strings attached, so they aren’t inclined to quite unless they have an amazing competitive offer.
I’ve also seen a new executive come along and admit the strategy was being used, called it BS, and announced bonus was going to be significant but they were laying off folks.
I’ve seen the induced attrition, but with control. So let’s say the company on a ‘healthy’ year gives out a 14% bonus to everyone (and the salary is calibrated with the expectation of that large bonus). So they decide they want attrition, sorry, they can’t afford the bonus that year, everyone just has to learn to do without. Ok, disastrous, except they also identify some key folks and give them like 30% bonus in stock that vests over two years and/or a cash bonus with a clause that they are entitled for that to be paid back if the employee quits. So those people manage to get the same money (or more), though with strings attached, so they aren’t inclined to quite unless they have an amazing competitive offer.
I’ve also seen a new executive come along and admit the strategy was being used, called it BS, and announced bonus was going to be significant but they were laying off folks.