Chapter 15: Managing Employee Separations: Foundations of Employee Engagement , Communication, and Turnover Management Flashcards
Voluntary turnover:
-decision made by employee
=quit
=retirement
=resignation
Involuntary turnover:
-decision made by employer
=Dismissal
=layoff
The Cost of Turnover
- separation costs
- vacancy costs
- replacement costs
- training costs
-separation costs
separation interview, administration, separation or severance pay
-vacancy costs
temporary workers, overtime, loss of sales due to vacancy
- replacement costs
recruiting/hiring replacement
- training costs
for replacement (formal and informal)
Voluntary Turnover: reasons for voluntary turnover:
- sub-optimal hiring practices
- difficult managerial style
- lack of recognition
- lack of competitive compensation systems
- toxic workplace environments
Involuntary Turnover: reasons for involuntary turnover:
- unacceptable job performance
- economic/financial pressures
- new strategic direction
should be fair, after all reasonable steps taken to rehabilitate employment relationship
Fair and Just Disciplinary Process: Foundations:
- rules and regulations
- clear expectations of acceptable behaviour - progressive discipline
- warning, suspension, termination - appeals process
- allow employee to present case
Dismissal for Just Cause
- -termination based on poor behaviour
- -no severance or additional notice period required
dismissal
involuntary termination of employment
insubordination
- -disregard or disobedience of authority
- -often provides grounds for just cause
Layoff
temporary withdrawal of employment to workers
Conditions for Layoff
- no work available
- situation expected to be temporary
- management intention to recall employees
alternatives to layoffs
pay reduction, use of vacation time, contingent workers, work sharing
distributive justice
fairness of a decision outcome
procedural justice
fairness of the process used to make a decision
interactional justice
fairness in interpersonal interactions by treating others with dignity and respect
Employee-Employer Relationship: employment contract
–formal agreement between employer and employee
–employee cannot be prematurely dismissed without just cause if a term is specified
Employee-Employer Relationship: Implied contract
- -indefinite period of time, may be terminated by either party with reasonable notice
- -more common
Providing Reasonable Notice
–required when terminating an employee if just cause does not exist
–considerations:
- rule of thumb is 3-4 weeks per year service
- failure to provide notice may result in wrongful dismissal
- large group terminations require more notice
- avoid “bad faith conduct”
- wrongful acts may result in punitive damages
Constructive Dismissal
–employer makes unilateral changes in the employment contract that are unacceptable to the employee (demotion, reduction in pay and benefits, forced resignation)
–employee is eligible for reasonable notice
Avoiding Wrongful Dismissal Suits
- Use termination clause and probationary period in employment contracts
- Document all disciplinary action
- Do not allege just cause for dismissal unless it can be proven
- Time the termination so that it does not conflict with special occasions
- Clearly state a settlement offer in writing
- Schedule the termination interview in a private location at a discrete time of day
- Include two managers in the termination meeting
The Termination Interview
- Plan the interview
- Get to the point
- Describe the situation briefly
- Listen
- Review all elements of the severance package
- Identify the next step
Employee Engagement
–emotional and intellectual involvement of employees in their work
–creates vested interest in company’s success, willingness, and motivation to exceed job performance requirements
–effective communication is important to employee engagement
Turnover
The termination of an individual’s employment with an organization
Quitting
Voluntary, employee-initiated resignation
retirees on call
a program where retirees can continue to work on a part-time or as-needed basis post-retirement
phased retirement
potential retirees gradually reduce the number of hours worked per week over time.
pre-retirement counselling
counselling provided to employees some months (or even years) before retirement, which covers such matters as benefits advice, second careers, and so on.
dismissal
involuntary termination of an employee’s employment
dismissal for just cause
an employer-initiated termination based on an employee’s poor behaviours; in these situations, no severance, reasonable notice periods, or additional payments beyond what the employee has already earned are owed.
downsizing
refers to an intentional decision made by executives within the organization that involves a reduction of the workforce to improve efficiency or effectiveness of the organization by affecting the work process. Often the term layoff is used to define downsizing in research and organizations .
wrongful dismissal
an employee dismissal that does not comply with the law or does not comply with a written or implied contractual arrangement
reasonable notice legislation
laws that require an employer to notify employees in the event that they decide to terminate employees through layoffs (i.e. no just cause) . Minimum notice varies on size of the layoffs, with smaller layoffs determining minimum notice based on employee tenure and mass layoffs determining minimum notice based on total layoff size.
bad-faith damages
Reserved for extreme circumstances in which the employers was untruthful, misleading, or unduly insensitive to the employee in the course of a dismissal.
punitive damages
Reserved for malicious of outrageous cases in which an employer engages in harsh and vindictive treatment of an employee , or if the employee suffered undue distress from not being given adequate notice of termination.
constructive dismissal
when the employer makes unilateral changes in the employment contract that are unacceptable to the employee, even through the employee has not been formally terminated.
employee opinion surveys
communication devices that use questionnaires to ask for employees’ opinions about the company, management, and work life.
