The \"most expensive\" resignation letter in history – its release caused the company’s value to drop by 40 billion!

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SMIC is once again on the hot search lists, but it’s not because of any technological breakthroughs； Rather, it was CEO Liang Mengsong’s resignation letter that suddenly announced his departure ； A direct cut of 40 billion yuan from SMIC’s market value caused a huge stir. The \"most expensive\" resignation in history: As the leader in China’s semiconductor industry, SMIC was once seen as \"the last hope for the entire industry.\" Recently, Dr. Mengsong Liang, CEO of SMIC, issued a resignation letter ； After the news was released, SMIC’s stock price dropped by 10% at one point during trading ； A market value of over 400 billion was cut by 40 billion all at once. Liang Mengsong’s experience is covered in magazine Tianxia; thus, Dr. Liang’s letter can be regarded as the \"most expensive\" resignation letter in history – with that single decision, hundreds of millions of dollars were lost. The general message in his letter was as follows: It was not until December 9 that Chairman Zhou Zixue informed him about Jiang Shangyi’s decision to leave TSMC and return to SMIC; Liang Mengsong, as the CEO of Lian*, was completely unaware of this. Such a significant personnel change was made without anyone informing him, which left him extremely \"shocked and puzzled.\"” ； He believes that he is no longer respected or trusted by the company! Judging from Dr. Liang’s resignation letter ； He led his team to achieve the transition from 28nm to 7nm. He has been working almost non-stop from his tenure in 2017 to the present. Therefore, the news of his departure was seen by the market as negative for SMIC (that is, it had an adverse effect on market conditions and could lead to a drop in prices; it’s also referred to as bearish news) ； It is likely to have a direct impact on SMIC’s future development. The terrifying cost of employee turnover: The problems left behind when an employee leaves aren’t resolved just by finding someone else to fill that position! Research shows that after an ordinary employee leaves the company, the replacement cost alone can amount to 150% of that employee’s annual salary ； The cost of losing managers is even higher. Generally speaking, the loss of key talent requires a recruitment period of at least 1-2 months ； 3-month adaptation period ； A 6-month integration period. In addition, there are recruitment costs equivalent to 4 months’ salary, along with a failure rate of over 40%. 1. High cost: Let’s imagine that the salary of the departing employee is 8,000 ； Exit cost = Recruitment cost + Training cost + Opportunity cost + Termination cost. If we make such a rough estimate ； From the time an employee leaves until a new person is found and can take over smoothly ； The replacement cost alone is 4.8 times the salary of the existing employees ； The cost of replacing an employee is about half of the old employee’s annual salary! What’s even more troubling is that authoritative sources estimate that the departure of one employee can lead to about 3 other employees considering leaving as well. Based on this calculation, if the employee turnover rate is 10% ； So, 30% of the employees are looking for jobs. If the employee turnover rate is 20% ； Then 60% of the employees are looking for work. When employees leave, especially long-serving ones, it is in most cases a lose-lose situation. For companies: losing key employees who are familiar with the company’s business and culture ； Loss of business continuity and new business opportunities ； It affected customer resources, cultural heritage, and the feelings of current employees ； It brings risks such as the spread of negative information, difficulties in business handover, and new employees’ inability to perform their duties adequately ； It increases various labor costs such as those related to employee turnover, recruitment, and training. For employees: Leaving the job doesn’t necessarily lead to better outcomes. He has to risk not being able to adapt to the new job, failing to integrate into the culture, and having no friends ； Unknown risks such as difficult employee relations, reduced benefits, and the need to fight again for promotion opportunities. In only a few cases is there a situation of one winner and one loser: the company wants the employee to leave, or the employee wants to see improvements in all aspects at their new company ； But win-win situations are even rarer. 2. The reasons behind employees leaving their jobs: In most cases, employees resort to this mutually detrimental extreme measure only when they can no longer bear it, in order to achieve inner peace. Leaving the company is not the beginning of an employee’s dissatisfaction with it, but rather a stage of intensification. Why do employees leave? What are they unhappy about? Don’t expect employees to tell you the real reason for leaving during their exit interview. Over 80% of employees give reasons for leaving that are simply aimed at considering the feelings and capacity of both parties. Regarding the reasons for employees leaving, you can certainly cite a famous person’s view – there are basically two: insufficient pay and feelings of being wronged. Employees at different levels with varying lengths of service have more complex and diverse reasons for submitting their resignations. The differences in leaving the job at different stages are beyond imagination. Leaving after 2 weeks of starting work indicates that there is a significant gap between what new employees see in reality and their expectations ； These include the initial impressions of various aspects such as the company environment, onboarding training, benefits, and policies. What we need to do is to explain the actual situation as clearly as possible during the job interview ； Neither hiding nor exaggerating, so that new employees can have an objective understanding of their new employer ； This way, there won’t be a huge psychological gap. One should worry that the new people who are about to join won’t show up; those who are supposed to leave can never be held back. Then systematically organize the various steps involved in the onboarding process ； This includes steps from recruitment to notification of employment start, onboarding, induction training, and handover to the department where the employee will work. Fully taking into account the feelings and inner needs of newcomers ； Conduct systematic planning and introductions to make new employees feel respected and valued, and to help them understand what they want to know. 2. Resigned after 3 months at the company; upon joining, it was noted that there were certain issues regarding our job structure, responsibilities, required qualifications, and interview criteria ； It is necessary to carefully examine what the underlying causes are in order to take timely corrective actions and reduce wasted effort in the recruitment process. 3. Leaving the job after 6 months of employment: In most cases, leaving after 6 months is related to the direct supervisor ； That is, the manager effect – the biggest factor determining whether he can achieve outstanding results comes from his direct supervisor. Leaving after 3 months was mainly related to the work itself. The human resources department needs to find ways to get the company’s managers to undergo leadership training ； Understand and master the essential qualities required for basic leadership. Managers should understand the strengths of their subordinates ； Align his strengths with the job responsibilities ； To maximize the company’s effectiveness ； It also allows employees to demonstrate their value. An excellent manager is a coach ； He has the obligation and responsibility to uncover potential and strengths ； Training subordinates is an important driving force for their success. Changing the leader in the same department can lead to completely different outcomes ； The performance of the same group of employees can also be completely different. A team that might be highly combative and full of passion ； Another issue that could lead to an abundance of complaints, a disorganized team, and frequent resignations. The direct supervisor should be the first to understand an employee’s various movements and tendencies. His words can solve a problem or create conflict ； If not handled properly, team morale will decline and combat effectiveness will drop, leading to a vicious cycle. Therefore, in teams where a large number of employees leave within one year, it is important to be aware that there may be problems with their direct supervisor. 4. Left the company after about 2 years of working there; leaving after around 2 years is related to the company culture. Employees who have been with the company for about 2 years generally have a thorough understanding of it ； There is a comprehensive understanding of various ways of handling things, interpersonal relationships, the cultural environment, delegation of authority, career development, and so on ； Even including company strategy and the boss’s hobbies. Companies with a strong corporate culture conduct a thorough assessment of candidates’ values during the recruitment process ； I hope new employees can integrate into the company culture ； Contribute to the continuous improvement of culture ； Companies with a poor corporate culture do not have very high requirements regarding the values of their candidates ； They only conduct a one-sided assessment; it is hoped that their presence will purify and improve the cultural atmosphere ； But things often go against what is desired: 1) Their own value orientations may be problematic or flawed ； 2) Even if their values tend to be positive ； But an individual’s strength cannot compare to an atmosphere that has developed over time ； 3) When new employees join, they all strive to integrate into the team and try to avoid standing out too much. Therefore, it is easier to be assimilated. When the company culture conflicts with the values of new employees to a certain extent ； Even reaching a critical point or breaking a principle can lead to the breakdown of the relationship ； Leaving the job is inevitable. As a company, one must reflect on itself three times a day to identify any negative factors within the organization. Regardless of size, every company needs a good working environment to keep its employees happy. 5. Leaving the job after 3-5 years of employment: Leaving after 3-5 years is related to career development. Unable to learn new knowledge and skills ； There is little room for salary increases ； No more senior positions are available ； At this point, the best solution for employees is to change jobs. But for companies, employees at this stage should be the most valuable, as losing them results in significant losses. Therefore, companies need to design appropriate career development paths based on the different needs of various types of employees ； Understand the psychological state of employees and listen to their thoughts ； Study the supply and demand dynamics in the job market ； Proactively adjust salaries and job design. Our goal is to retain employees; other policies can be adjusted flexibly according to the circumstances. 6. Employees who have been with the company for over 5 years and then leave have improved patience. Leaving the job at this time is partly due to professional burnout. We need to assign him new responsibilities ； There should be more innovative jobs to motivate them. On the other hand, it is caused by a mismatch between the pace of personal development and that of corporate development. Those who develop slowly become the ones to be eliminated. When employees fail to keep learning and stay stagnant, it inevitably leads to the company gradually distancing itself from them and neglecting them ； If a company grows too slowly and offers no opportunities for employees to advance, those who are ambitious will see no future there and will inevitably seek employment elsewhere. Faced with high turnover costs, it is even more important to treat employees well, especially the outstanding ones