Chapter 11 - Managing Employee Separations: Foundations of Employee Engagement, Communication, and Turnover Management

Question 1

What about a termination can impact the long-term sustainability of an organization?

Answer 1

Who leaves,
how they are treated during the exit,
what the cause or nature of the exit is,
and how remaining employees perceive this.

HRM is important for managing employee engagement and communication during a time of employee separations.

Question 2

4 main components associated with the cost of turnover.

Answer 2

1. Separation costs - exit interviews, admin functions associated with the turnover, separation/severance pay.
2. Vacancy costs - net savings or cost incurred of increased overtime, use of temps, loss of sales associated with vacancy.
3. Replacement costs - recruiting and hiring a replacement; includes cost of interviews, testing, admin expenses, travel/moving expenses, etc.
4. Training costs - training and informal training (includes performance differential between employees exiting and their replacements).

Question 3

Cost of turnover as % of salary.

Answer 3

Cost of turnover ranges from 150% to 250% of salary.

Question 4

3 foundations of a fair and just disciplinary process.

Answer 4

rules and regulations;
progressive discipline;
an appeals process

Question 5

3 conditions present for a company layoff.

Answer 5

1. No work available for the employees.
2. Management expects the no work situation to be temporary and short term.
3. Management intends to recall the employees once work is again available.

Question 6

Most common changes in employment status that constitute constructive dismissal,

Answer 6

demotion
reduced pay and benefits
forced resignation
forced early retirement
forced transfer
changes in job duties and responsibilities

EE’s can sue the ER for wrongful dismissal.

Question 7

6 steps in a termination interview.

Answer 7

plan the interview carefully
get to the point
describe the situation
listen until the person has expressed his/her feelings
discuss the severance package
identify the next step