Business law of nature: 20% of employees sink, 20% swim, 60% just float along
In Japan, it’s said that 20% of a company’s employees are high performers, 60% are average, and 20% are near worthless. This 2-6-2 paradigm is a force of nature; it doesn’t matter if we are talking about the most elite company in Japan or the most insignificant one.
So explains Musashi Suga, business management consultant and representative of Suga Office in Yokohama. Suga specializes in human resource system design and came up with this ratio after analyzing in-depth, organizational changes in business management in the Japanese corporate workplace.
Any given company employs people with the best qualities, hoping to refine them into better and better employees as the years go on. According to Suga, although it may initially appear that this is happening, the 2-6-2 ratio has actually taken hold by the fifth year in the office.
Why does the level of performance of employees fall into this distinction instead of converging over time?
In short, it’s the hierarchical structure of the company that naturally yields this ratio. Most companies are eager to build a refined workforce and management knows that a uniform level of ability must be achieved for this to happen. Yet in any organized group of people, there are naturally 20% who rise to the top and 20% who fall to the bottom.
Most companies offer educational training programs for their workers and acquire outstanding workers from outside the company, but if this was all it took to bring everyone to the same skill level, then personnel management strategy would be a simple thing.
This 2-6-2 ratio represents a great inconvenience for companies that wish to raise a strong and competent workforce. Yet if management wishes to defy this ratio, it will take restructuring of the company itself, including a change in the power structure of the company accompanied by a change in the group dynamics of the company. In other words, a revamp of the whole hierarchical system.
In order to give life to an efficient work force the well-being of each and every company worker must be taken into consideration. Then the company will do well in their achievements.
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