the head of HR thought that the company's ~5% attrition was "unhealthy" because it was too low and in another, HR thought that the company's attrition sitting at a bit under 10% was too low Can someone explain to me why fewer people quitting is seen as an unhealthy metric? Retaining employees seems like something companies should want to try to prioritize above all else, especially in this market.
It implies that the company isn't pushing their employees hard enough. In otherwords, if managers are doing their job "correctly" they should either (1) be pushing their staff so hard that 1 in 10 of them quit every year (2) weening out the the poorest performer.
Historians long ago formed an abstraction about different theories of value: The Spanish Theory, for one, held that only a fixed amount of value existed on earth, and therefore the path to the accumulation of wealth was to learn to extract it more efficiently from the soil or from people’s backs. Then there was the English Theory that held that value could be created through ingenuity and technology. So the English had an Industrial Revolution, while the Spanish spun their wheels trying to exploit the land and the Indians in the New World. They moved huge quantities of gold across the ocean, and all they got for their effort was enormous inflation (too much gold money chasing too few usable goods).
The Spanish Theory of Value is alive and well among managers everywhere. You see that whenever they talk about productivity. Productivity ought to mean achieving more in an hour of work, but all too often it has come to mean extracting more for an hour of pay. There is a large difference. The Spanish Theory managers dream of attaining new productivity levels through the simple mechanism of unpaid overtime. They divide whatever work is done in a week by forty hours, not by the eighty or ninety hours that the worker actually put in.
[0] https://blog.bryanbibat.net/2009/08/31/spanish-theory-of-val...