Have you heard of Price’s Law? It may improve your employee retention?
Derek Price was a British physicist who is credited with identifying the mathematical relationship between (1) literature on a specific subject, and (2) the number of authors in the subject area. Price’s square root law (or simply Price’s Law) states that half of the publications in a subject area come from the square root of all contributors. So, if 100 papers are written by 25 authors, five of those 25 will have contributed 50 of those 100 papers. Price’s Law is obviously related to academic research and reporting, but I have observed an interesting parallel in the world of work.
Price’s Law at work
Repeatedly, in organizations, I have noticed that there seems to be a small number of people who seem to get the most work done. If I may go as far as invoking Price’s Law – half the work is done by the square root of the total number of employees in that department or division. So if the sales team has 10 people, half the revenue seems to come from three people in the group. If the first-line tech support team has 15 people, four people seem to respond to and close about half the support tickets. What if you have an organization of 100 people – do 10 of them get half the work done, and the other 90 the remaining half? That’s a scary thought! Now I know that Price’s Law doesn’t exactly compute in every situation, but my point is that this ratio generally applies – which is, a handful of people get the most work done. Continue reading