Chapter Managing Employee Separations, Downsizing, and Outplacement Copyright © 2016 Pearson Education, Inc 6-1 Chapter Challenges Understand employee separations Gain mastery in identifying types of employee separations Have familiarity with managing early retirements Copyright © 2016 Pearson Education, Inc 6-2 Chapter Challenges Learn practices for managing layoffs Recognize the role of outplacement Copyright © 2016 Pearson Education, Inc 6-3 What Are Employee Separations? Employee Separation Employee ceases to be a member of the organization Turnover Rate Measure of the rate at which employees leave the organization Copyright © 2016 Pearson Education, Inc 6-4 Costs of Employee Separations Copyright © 2016 Pearson Education, Inc 6-5 Benefits of Employee Separation Reduced Labor Costs Replacement of Poor Performers Increased Innovation Opportunity for Diversity Copyright © 2016 Pearson Education, Inc 6-6 Types of Employee Separation Voluntary Quits Retirements Involuntary Discharges Layoffs Copyright © 2016 Pearson Education, Inc 6-7 Managing Early Retirement • • • • Financial Package Incentives Short Eligibility Window Reduce the Size of the Organization Must Be Managed Carefully Copyright © 2016 Pearson Education, Inc 6-8 Avoiding Problems with Early Retirement Too many employees take retirement option Desired employees may leave Perception of forced leave Age discrimination complaints Copyright © 2016 Pearson Education, Inc 6-9 Managing Layoffs Copyright © 2016 Pearson Education, Inc 6-10 Alternatives to Early Layoffs Copyright © 2016 Pearson Education, Inc 6-11 Implementing Layoffs • Notifying Employees o WARN Act—60 -ay notice • Developing Layoff Criteria o Seniority or Employee Performance • • • • Communicating to Laid-Off Employees Coordinating Media Relations Maintaining Security Reassuring Survivors Copyright © 2016 Pearson Education, Inc 6-12 Effects of Layoffs on Survivors Increased absenteeism and turnover Lower productivity and poorer job satisfaction Increased sabotage Copyright © 2016 Pearson Education, Inc 6-13 Outplacement Goals of Outplacement: • Reduce morale problems • Minimize litigation • Assist laid-off employees Outplacement Services: Emotional support Job-search assistance Copyright â 2016 Pearson Education, Inc 6-14 Summary and Conclusions • • • • • What Are Employee Separations? Types of Employee Separations Managing Early Retirements Managing Layoffs Outplacement Copyright © 2016 Pearson Education, Inc 6-15 Pearson Education, Inc Copyright Copyright © 2016 Pearson Education, Inc 6-16 ... discrimination complaints Copyright © 2016 Pearson Education, Inc 6-9 Managing Layoffs Copyright © 2016 Pearson Education, Inc 6-10 Alternatives to Early Layoffs Copyright © 2016 Pearson Education, Inc... Copyright © 2016 Pearson Education, Inc 6-2 Chapter Challenges Learn practices for managing layoffs Recognize the role of outplacement Copyright © 2016 Pearson Education, Inc 6-3 What Are Employee... rate at which employees leave the organization Copyright © 2016 Pearson Education, Inc 6-4 Costs of Employee Separations Copyright © 2016 Pearson Education, Inc 6-5 Benefits of Employee Separation