No manager likes to lose his or her best employees; each manager likes to minimize the fluctuation in the team. The managers press the HRM Function to make the compensation policy so competitive, that the employees are couth in the trap of high base salaries.
Generally, the HRM Benchmarks are very clear. The companies have the fluctuation about 10% a year and they have no chance to make it lower. It is also said, this fluctuation is healthy for the organization.
The healthy fluctuation brings new know how, skills and competencies to the organization. Most managers tend to make the world calm around them and the company with low fluctuation can lose its dynamics and the sense for a healthy competition.
The role of the HRM Function is a close monitoring of the fluctuation in the organization. The overall fluctuation has to be aligned with the external HRM Benchmarks and the HRM Function has to build internal benchmarks.
The managers have to work with the information about the fluctuation in the organization and the HRM Function has to make deep analysis of the fluctuation reasons.
Sometimes, the managers try to catch the HRM Function in the trap of the external comparison. The HRM Function has to be strong enough to keep the fluctuation benchmarking internal. The external comparison is dangerous as the data are not fully available and the managers can demand more and more information with no results out of the discussions.
The healthy fluctuation makes the organization look better, brings competition to the organization and the managers should not be worried to lose some potentials from time to time.
