You will find HR managers obsessed with retention of talent. Infact for many retention of talent is one of the key performance indicators. HR Managers keep coming up with ideas to retain talent.
HR Managers should also think about what if they don’t retain talent. One impact would be rise in cost of hiring and time taken for new person to stabilize.
But at times quitting of talent, while may not be beneficial to company, may be beneficial to employee and even society.
Narayan Murthy was employee of Patni, company founded by Patni brothers. One day he decided to leave Patni with his team and start company of his own. With his wife acting as venture capitalist, he started company called Infosys. Infosys today one of the biggest IT companies in India, while Patni no longer exists.
Had the HR manager been able to retain Narayan Murthy and his team, at most he would have been COO in Patni ( CEO position was reserved for Patni family)
“The key takeaway for me from the Cheminor crisis, which I hold on to till this day, is that you can never have a company totally dependent on one individual. So I decided to build an organisation that’d sustain changing ownership, technologies, products, strategies, etc.”
-G V Prasad, CEO Dr. Reddy’s Labs
Another interesting example is that of Murli Divi. Murli Divi was hired by Dr. K Anji Reddy to turn around subsidiary of Dr. Reddy’s Lab called Cheminor Drugs. It was a tough task. But Murli Divi managed to build a team and succeeded in turning around the company. Meanwhile Dr. Anji Reddy appointed his son in law G V Prasad on board of Dr. Reddy’s Lab. Murli Divi could not get along with G V Prasad, hence resigned. The day Divi resigned, almost 150 employees too resigned.
“The impact of this [style of functioning] was great. When he left Cheminor in 1990, almost 125 people resigned the same day. That tells you how he handled people.”
-Ramesh Babu Potluri, founder SMS Pharma
Murli Divi started company of his own called Divi Laboratories. One of his team member Potluri too started company of his own called SMS Labs.
Had Cheminor Drugs retained Murli Divi, he would have remained employee. But quitting benefitted the Pharma industry.
“Perhaps because I was destined to become chairman of my own company rather than remaining managing director elsewhere.”
-Murli Divi, founder Divi Labs