EMPLOYEE SEPARATION AND RETENTION MANAGEMENT Employee Employee Separation Separation •• Reasons Reasonsfor foremployee employeeseparations separations –– Pressures Pressureson onfirms firmstotoremain remaincompetitive competitive&&efficient efficient –– Decline Declineininemployee employeecommitment commitmenttotoemployers employers •• Importance Importanceof ofmanaging managingseparations separations –– Transitions Transitionsofofemployees employeesout outofoffirm firmgo gosmoothly smoothly –– Continuing Continuingoperations operationsofoffirm firmnot notdisrupted disrupted –– Important Importantprofessional professionalrelationships relationshipsnot notdamaged damaged •• Types Typesof ofseparations separations –– Reductions-in-force, Reductions-in-force,turnover, turnover,&&retirements retirements Reductions-in-Force Reductions-in-Force (RIFs) (RIFs) •• Causes Causesof ofreductions reductions –– Restructuring Restructuringas asaaresult resultofofmergers mergers&&acquisitions acquisitions –– Attempts Attemptstotomake makeorganization organizationmore morecost costcompetitive competitive –– Adjustments Adjustmentstotodeclining decliningbusiness businessenvironment environmentconditions conditions •• Reasons Reasonsfor forreductions reductions –– Inefficiency Inefficiencyininoperations operations –– Lack Lackofofadaptability adaptabilityininmarketplace marketplace –– Weakened Weakenedcompetitive competitiveposition positionininindustry industry •• Methods Methodsfor fordealing dealingwith withreductions reductions –– Continuance Continuancepay pay&&outplacement outplacementprograms programs Reductions-in-Force Reductions-in-Force (RIFs) (RIFs) Worker WorkerAdjustment AdjustmentRetraining Retraining&&Notification NotificationAct Act(WARN) (WARN)of of1989 1989 –– Requires Requiresemployers employerswith withmore morethan than100 100employees employeestoto provide providesixty sixtydays dayswritten writtennotice noticeofofany anyfacility facilityclosings closingsoror large-scale large-scalelayoffs layoffsofof50 50orormore moreemployees employees –– WARN WARNdoes doesno noapply applytotogovernmental governmentalagencies agencies –– Exceptions ExceptionstotoWARN WARN •• ““Faltering Falteringcompany” company” •• ““Unforeseeable Unforeseeablecircumstance” circumstance” •• Natural Naturaldisaster disaster •• ““Temporary Temporaryfacility” facility” Turnover Turnover •• Involuntary Involuntary turnover turnover –– Employees Employeesasked askedtotoleave leaveorganization organizationfor forcause causeor or due duetotocircumstances circumstancesthat thatcause causereduction-in-force reduction-in-force •• Voluntary Voluntary turnover turnover –– Employees Employeeswho wholeave leaveorganization organizationon onown owninitiative initiative •• ““Beneficial” Beneficial” turnover turnover –– Low Lowperforming performingemployees employeesdepart depart&/or &/ornew newhigher higher performing performingemployees employeespromoted promotedor orhired hiredas as replacements replacements Retention Retention of of High High Performers Performers •• Critical Critical HR HR issue issue –– Development Development ofof policies policies && programs programs toto retain retain high high performers performers &/or &/or those those difficult difficult toto replace replace •• Employers Employers face face competition competition from from –– Other Other organizations organizations –– From From employees employees they they are are attempting attempting toto retain retain (to (to start-ups) start-ups) Retirement Retirement •• Age AgeDiscrimination DiscriminationAct Actof of1967 1967 –– Prohibits Prohibitsemployer employerfrom fromsetting settingmandatory mandatoryretirement retirementage age except exceptinincertain certainoccupations occupations(e.g (e.g.pilots) pilots) •• Retirement Retirement –– Creates Createsadvancement advancementopportunities opportunitiesfor foryounger youngeremployees employees &&reduces reducespayroll payrollcosts costs –– Can Cancause causeloss lossofofvital vitalhistorical historicalknowledge knowledgeofoforganization, organization, industry industry&&marketplace marketplace –– Part-time Part-time&&consulting consultingwork workcan canease easetransition transitionofofolder older workers workersinto intoretirement retirement Alumni Alumni Relations Relations •• Increasing Increasingnumbers numbersof ofemployers employersare aremaintaining maintaininggood goodrelationships relationships and andcommunicating communicatingwith withformer formeremployees employees •• Such Suchalumni alumniare arepotential potentialcustomers customersand andreferral referralsources sourcesfor forboth bothnew new business businessand andnew newemployees employees •• The Theproliferation proliferationof ofonline onlineprofessional professionalalumni alumninetworks networkshas hasaided aided this thisprocess process Reading Reading 13.1 13.1 –– Retaining Retaining Talent: Talent: Replacing Replacing Misconceptions Misconceptions with with Evidence-Based Evidence-Based Strategies Strategies Reading Reading 13.1 13.1 –– Retaining Retaining Talent: Talent: Replacing Replacing Misconceptions Misconceptions with with Evidence-Based Evidence-Based Strategies Strategies Reading Reading 13.1 13.1 –– Retaining Retaining Talent: Talent: Replacing Replacing Misconceptions Misconceptions with with Evidence-Based Evidence-Based Strategies Strategies HR HRstrategies strategiesthat thatcan canused usedto tobetter bettermanagement managementturnover turnover Recruitment Recruitment • •Providing Providingaarealistic realisticjob jobpreview preview(RJP) (RJP)during duringrecruitment recruitmentimproves improvesretention retention • •Employees hired through employee referrals tend to have better retention Employees hired through employee referrals tend to have better retentionthan thanthose thosehired hiredthrough through other recruitment sources other recruitment sources Selection Selection • •Biodata Biodata(biographical (biographicaldata) data)and andweighted weightedapplication applicationblanks blanks(WAB) (WAB)can canbe beused usedduring duringthe theselection selection process to predict who is most likely to quit process to predict who is most likely to quit • •Assessing Assessingfitfitwith withthe theorganization organizationand andjob jobduring duringselection selectionimproves improvessubsequent subsequentretention retention Socialization Socialization • •Involve Involveexperienced experiencedorganization organizationinsiders insidersasasrole rolemodels, models,mentors, mentors,orortrainers trainers • •Provide Providenew newhires hireswith withpositive positivefeedback feedbackasasthey theyadapt adapt • •Structure Structureorientation orientationactivities activitiessosothat thatgroups groupsofofnew newhires hiresexperience experiencethem themtogether together • •Provide Provideclear clearinformation informationabout aboutthe thestages stagesofofthe thesocialization socializationprocess process Reading Reading 13.1 13.1 –– Retaining Retaining Talent: Talent: Replacing Replacing Misconceptions Misconceptions with with Evidence-Based Evidence-Based Strategies Strategies Training Trainingand andDevelopment Development ••Offering Offeringtraining trainingand anddevelopment developmentopportunities opportunitiesgenerally generallydecreases decreasesthe thedesire desire totoleave; leave;this thismay maybe beparticularly particularlycritical criticalinincertain certainjobs jobsthat thatrequire requireconstant constant skills skillsupdating updating ••Organizations Organizationsconcerned concernedabout aboutlosing losingemployees employeesby bymaking makingthem themmore more marketable marketableshould shouldconsider considerjob-specific job-specifictraining trainingand andlinking linkingdevelopmental developmental opportunities opportunitiestototenure tenure Compensations Compensationsand andRewards Rewards ••Lead Leadthe themarket marketfor forsome sometypes typesof ofrewards rewardsand andsome somepositions positionsininways waysthat thatfit fit with withbusiness businessand andHR HRstrategy strategy ••Tailor Tailorrewards rewardstotoindividual individualneeds needsand andpreferences preferences ••Promote Promotejustice justiceand andfairness fairnessininpay payand andreward rewarddecisions decisions ••Explicitly Explicitlylink linkrewards rewardstotoretention retention Reading Reading 13.1 13.1 –– Retaining Retaining Talent: Talent: Replacing Replacing Misconceptions Misconceptions with with Evidence-Based Evidence-Based Strategies Strategies Supervision Supervision ••Train Trainsupervisors supervisorsand andmanagers managershow howtotolead, lead,how howtotodevelop developeffective effectiverelationships relationshipswith with subordinates, and other retention management skills subordinates, and other retention management skills ••Evaluate Evaluatesupervisors supervisorsand andmanagers managerson onretention retention ••Identify Identifyand andremove removeabusive abusivesupervisors supervisors Engagement Engagement ••Design Designjobs jobstotoincrease increasemeaningfulness, meaningfulness,autonomy, autonomy,variety, variety,and andcoworker coworkersupport support ••Hire Hireinternally internallywhere wherestrategically strategicallyand andpractically practicallyfeasible feasible ••Provide Provideorientation orientationthat thatcommunicates communicateshow howjobs jobscontribute contributetotothe theorganizational organizationalmission mission and andhelps helpsnew newhires hiresestablish establishrelationships relationships ••Offer Offerongoing ongoingskills skillsdevelopment development ••Consider Considercompetency-based competency-basedand andpay-for-performance pay-for-performancesystems systems ••Provide Providechallenging challenginggoals goals ••Provide Providepositive positivefeedback feedbackand andrecognition recognitionofofall alltypes typesofofcontributions contributions Reading Reading 13.2 13.2 Knowledge Knowledge Management Management Among Among the the Older Older Workforce Workforce Organizations Organizationsneed needtotohave haveaawell-planned well-plannedstrategic strategicmeans meansof of transferring transferringknowledge knowledgefrom fromretiring retiringbaby babyboomers boomerstotomembers membersof of younger youngergenerations generations Assumptions Assumptionsthat thatsenior seniorworkers workerswere wereproblematic problematicfor fororganizations organizationsare are not notvalid, valid,as asresearch researchshows showsthat thatsenior seniorworkers workers ••have havelow lowturnover turnoverrates rates ••are areflexible flexibleand andopen opentotochange change ••possess possessup-to-date up-to-dateskills skills ••are areinterested interestedininlearning learningnew newtasks tasks ••have havelow lowabsentee absenteerates rates ••have havefew fewon-the-job on-the-jobaccidents accidents Reading Reading 13.2 13.2 Knowledge Knowledge Management Management Among Among the the Older Older Workforce Workforce Senior Seniorworkers workersalso alsocontribute contributeresponsibility responsibilityand andmaturity, maturity,commitment commitment tototheir theirwork, work,experience experienceand andloyalty loyalty Senior Seniorworkers workersshould should1) 1)be beencouraged encouragedtotoremain remainininthe theworkforce workforceas as their theirpositive positivecontributions contributionscontinue continueand and2) 2)work workmore moreclosely closelywith with younger youngerworkers workerstotofacilitate facilitateknowledge knowledgetransfer transfer Reading Reading 13.2 13.2 Knowledge Knowledge Management Management Among Among the the Older Older Workforce Workforce Five Fivecritical criticalsuccess successfactors factorsrelate relatetotoknowledge knowledgetransfer transfer 1.1.Coaching Coachingleadership leadershipstyle style 2.2.Structure, Structure,roles, roles,and andresponsibilities responsibilities 3.3.Emphasis Emphasison onlearning learningand andeducation education 4.4.Attention Attentiontotomotivation, motivation,trust, trust,reward rewardand andrecognition recognition 5.5.Establishing Establishingthe theright rightculture culture ... establishrelationships relationships ••Offer Offerongoing ongoingskills skillsdevelopment development ••Consider Considercompetency-based competency-basedand andpay-for-performance pay-for-performancesystems... possessup-to-date up-to-dateskills skills ••are areinterested interestedininlearning learningnew newtasks tasks ••have havelow lowabsentee absenteerates rates ••have havefew fewon-the-job on-the-jobaccidents... Importantprofessional professionalrelationships relationshipsnot notdamaged damaged •• Types Typesof ofseparations separations –– Reductions-in-force, Reductions-in-force,turnover, turnover,&&retirements