Professional Documents
Culture Documents
CHAPTER SIX
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Chapter Objectives
Identify the costs and benefits associated with employee separations Understand the differences between voluntary and involuntary separations Avoid problems in the design of early retirement policies Design HRM policies for downsizing that are alternatives to layoffs and develop a layoff program that is effective and fair
Review
Key Terms
Attrition Employee
separations Exit interviews Hiring freeze Involuntary separation Outplace assistance Turnover rate Voluntary separation
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Key Terms
Employee
The
separations
Turnover
The
rate
1-4
Recruitment
1-5
benefits of employee separations Reduced labor costs Replacement of poor performers Increased innovation Opportunity for greater diversity
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separation
separation that occurs when an employee decides, for personal or professional reasons, to end the relationship with the employer.
Quits Retirements
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Involuntary separation
A separation that occurs when an employer decides to terminate its relationship with an employee due to a poor fit between the employee and the organization or economic necessity
Discharges
Occur
when a firm decides there is a poor fit between an employee and a the organization
Strategy by a company to reduce scale and scope of its business to improve its financial performance Rightsizing Reorganization of a companys employees to improve efficiency
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employment policy designed to reduce the companys workforce by not refilling job vacancies that are created by turnover.
Hiring
An
freeze
employment policy designed to reduce the companys workforce by not hiring any new employees into the company.
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Alternatives to Layoffs
Changes
in Job Design
and relocation
Sharing
Pay
Pay
freezes Cut overtime Use vacation time and leave days Pay cuts
Retraining
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Implementing a layoff
Layoff
The
elimination of jobs, often without regard to employee performance, usually when a company is experiencing financial difficulties. Also may occur if a company is changing its corporate strategies.
Notifying
Worker
employees
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Terminations Layoffs
other than discharges for cause, voluntary departures, or retirement exceeding six months of more than 50% in employees work hours during each month of any six-month period.
Reductions
Penalty
One
days pay and benefits to each employee for each days notice that should have been given, up to 60 days.
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employers of 100 or more employees to give 60 days notice before closing a facility or starting a layoff of 50 people or more. law does not prevent the employer from closing down, nor does it require saving jobs.
The
The
law is intended to give employees time to seek other work or retraining by giving them advance notice of the shutdown.
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Implementing a Layoff
Implementing
Develop
Seniority
a Layoff
layoff criteria
vs. Performance
Communicating
to laid-off employees Coordinating media relations Maintaining security Reassuring survivors of the layoffs
Survivor
More
Anxiety
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Outplacement
The
Goals of Outplacement -
1. Reducing
the morale problems of employees who are about to be laid off 2. Minimizing the amount of litigation initiated by separated employees 3. Assisting separated employees in finding comparable jobs as quickly as possible
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Outplacement Services
Emotional