Sometimes, what you think is the problem… isn’t the real problem at all.
At Karakoti Consulting, we were recently approached by a Fintech SME grappling with a critical challenge of early attrition. A staggering 57% of their new hires were leaving within the first year.
Leadership assumed the issue was the complexity of their business—too steep a learning curve for new joiners. Despite several interventions, nothing worked. Growth plans were impacted.
But when we looked deeper, the real culprit became clear:
Their performance management process was unintentionally undermining new joiner retention. It was designed to reduce costs of bonuses and salary increments! Rather than driving performance, it eroded fairness, culture, and motivation.
The result?
- high early attrition
- low engagement
- inability to grow new business line
- loss of ROI of recruitment and training cost
Simply put, the Performance Management Process wasn’t aligned with the business’s strategic goals.
This organisation believed complexity was the problem—but the real issue was buried in a misaligned people process. At Karakoti Consulting, we help SME businesses uncover the actual root causes behind persistent people challenges—and solving them with strategic, sustainable solutions.
If something in your organisation isn’t working, we can help to find out why, and tailor a sustainable solution.
DM or email us or book a call via www.karakoticonsulting.com
We help companies strategically grow faster by transforming people frameworks and recruitment from growth blockers into growth enablers.
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