Can Businesses Benefit From Brain Drain?

To provide a high potential employee with a full range of personal development space, to keep employees' turnover in a balanced state of mind, and to actively develop the talent mechanism for the former employees.

A certain degree of talent flow is beneficial to the long-term development of enterprises and employees.

Employee turnover is a disadvantage to enterprises. Most of the answers are positive.

Because with the turnover of employees, enterprises lose not only human capital, skills and accumulated work experience over the years, but also social capital, that is, the relationship between employees and the internal and external businesses.

The traditional view is that employee turnover means loss of tangible and intangible capital.

However, this view is outdated.

INSEAD Business School postdoctoral researcher Friderick Coda (Fr e d e ricGodart), assistant professor of strategic studies Andrei Spilo (Andrew V. Shipilov) and Cam Klaas, a doctor of organizational behavior (Kim Claes), conducted a study on creative industries in Fontainebleau, INSEAD European campus, and found that enterprises may benefit from employee turnover.

Researchers interviewed dozens of senior executives in the global fashion industry and collected thousands of job information from fashion professionals.

From the collected data, it analyzes the impact of employees' job hopping on their original fashion companies.

Benefit factors

Researchers found that designers jumping from a fashion company to another fashion company could actually bring better performance to the original company.

This stems from the fact that the original company will benefit from the resignation designer.

McKinsey Co, an international consultancy, and Procter & Gamble, a leading global consumer goods manufacturer, are closely related to their departing staff. They can grasp the information and trends of customers and competitors through this network.

Employees who quit can play an active role in enhancing the brand and social influence of enterprises.

Leaving employees are generally well nurtured by the company's corporate culture and business philosophy.

They will become a real live advertisement of the original company, helping the company to enhance its brand image and creative leadership.

For example,

Enterprises need to replenish fresh blood.

The departure of the original designer has created room for the fashion companies to introduce new people.

The entry of new recruits will bring new vitality and new ideas to the company and make the company vibrant and innovative.

Some fashion companies are interested in letting their designers find another way to make a big difference in their pursuit of personal career development.

A senior manager of a fashion company once said that if the company did not have enough space for designers to develop, the company would not discourage employees from leaving.

Instead of restricting them and making them unhappy, let them join other companies to display their talents.

The results also show that depressed employees will have a negative impact on the overall performance of the company, and if these employees have the opportunity to further exercise in different environments, they may be able to return to the original company with stronger working ability in the future.

Top consulting firms are well versed in this talent management mechanism, and they do not discourage young analysts from resigning, because this may be a valuable asset for the company. When these young analysts return to their original company, they may be experienced analysts with rich experience.

This is also a talent mechanism taught in the MBA curriculum: providing a full range of personal development space for high potential employees, balancing employees' turnover and developing a talent mechanism for the former employees.

A certain degree of talent flow is beneficial to the long-term development of enterprises and employees.

"Treat kindly"

In any industry, the flow of talent is not always a bad thing.

The high-tech enterprises in Silicon Valley rely on the flow of talents to acquire innovative thinking and promote the development of enterprises.

The same is true of the film industry. Hollywood and Bollywood often engage in temporary actors, film makers, directors, technicians and playwrights.

In banking, analysts and investment bankers often jump to other companies, and they will benefit from the return of better skills in the future.