Chapter 15 Flashcards
Turnover
the termination of an individual’s employment with an organization
Types of Speration
- Voluntary Turnover (decision is made by the employee - quit, retirement, resignation)
- Involuntary Turnover (decision is made by the employer - dismissal, layoff)
Top 3 Reasons for Turnover
- Downsizing
- Sought New challenges
- Ineffective Leadership
Cost of Turnover
- Separation costs (separation interview, admin, severance pay)
- Vacancy Costs (temporary workers, overtime, loss of sales)
- Replacement Costs (recruiting/hiring a replacement)
- Training costs (for replacement)
5 Reasons for Voluntary Turnover
- Suboptimal hiring practices
- Difficult managerial style
- Lack of recognition
- Lack of competitive compensation
- Toxic workplace environment
Reasons for Involuntary Turnover
- Unacceptable job performance
- Economic/financial pressure
- New strategic direction
Fair and Just Disciplinary Process
- Rules + Regulations (clear expectations of acceptable behaviour)
- Progressive Discipline (warming, suspension, termination)
- Appeal process (allow employee to present case)
Dismissal for Just Cause
Termination based on poor behaviour - NO severance or additional period required
Insubordination
Disregard/disobedience of authority - often fair grounds for just cause (make sure to record and have witnesses)
Layoff
Temporary withdrawal of employment to workers
Conditions of a Layoff
- No work available
- Situation expected to be temporary
- Intention to recall employees
Alternatives to Layoffs
- pay reduction
- use of vacation time
- contigent workers
- work sharing
Fairness in Employee Seperations
- Distributive Justice (fairness of decision)
- Procedural Justice (proper procedure to make decision)
- Interactional Justice (treating others with dignity + respect)
Employment Contract vs. Implied Contract
Employment Contract: formal agreement, just cause must be shown (if specified)
Implied Contract (indefinite period of time - can be terminated by either party w/ reasonable notice) MORE COMMON
Providing Reasonable Notice
*Required when terminating WITHOUT just cause
Considerations in providing Reasonable Notice
- 3 - 4 weeks per year of service is a rule of thumb
- Failure to provide reasonable notice (wrongful dismissal)
- Large group terminations require longer period
- avoid “bad faith” - be honest
- wrongful acts = PUNITIVE DAMAGES
Constructive Dismissal
ILLEGAL
Employer makes unilateral changes in employment contract that are unacceptable to the employee
Ex: demotion, forced resignation, reduction in pay
How to avoid wrongful dismissal suits
- Use termination clause + probationary period in employment contracts
- Document disciplinary action
- Do not allege just cause UNLESS proven
- Do not terminate during special occasions
- Clearly state a settlement offer in writing
- Schedule termination interview in private area
- Include 2 managers in termination meeting
Outplacement
Helps terminated employees train on techniques to securing a new position
Steps in Conducting the termination Interview
- Plan interview
- Get to the point
- Describe situation briefly
- Listen
- Review all elements of the severance package
- Identify next steps
Employee Engagement
Emotional/intellectual involvement in work - creates interest in company’s success and motivation.
Effective communication is key
Drivers of Engagement
- Senior Management sincerely interested in employees well being
- Organizational reputation for social responsibility
- Input into decision making
How to help engagement
- Offer rewards to employees for suggestions on organizational improvement
- Employee opinion surveys
Communication from Management (Engagement)
- Newsletters, email, video, intranet, blogs from senior management
