Introduction to Human Resource Management. Class 10

Transcription

1 Introduction to Human Resource Management Class 10

2 Class Overview This class, the topic of managing employees (including separations, downsizing, and outplacement) will be addressed. Throughout this class, students will begin to review the benefits and drawbacks associated with separations, early retirement policies, layoffs, etc.

3 Employee Separations An employee separation occurs when an employee ceases to be a member of an organization. There are a number of reasons for employee separations - both voluntary and involuntary.

4 Issues Associated with Employee Separations Cost of Turnover Recruitment Advertising, resume screening, interviewing, onboarding. Lost productivity Uncompleted tasks or departmental pressures Stress on coworkers and managers Filling in for the employee until a replacement is found. Training Time associated with onboarding and training new applicants. HR time and departmental time

5 Formula for Turnover Costs Employee turnover costs are often described with generic numbers such as $X, per employee or X% of annual salary (actual dollar amounts and percentages vary from source to source).

6 Turnover by Employee Pay Less than $30,000 High turnover, lower-paying jobs (those under $30,000 a year) are slightly less expensive to replace, at only 16 percent of annual salary, but that still adds up quickly. Less than $50,000 For all jobs earning less than $50,000 per year, or more than 40 percent of U.S. jobs, the average cost of replacing an employee amounts to fully 20 percent of the person's annual salary. Above $50,000 Costs significantly increase! While the costs of losing a "normal" employee are high enough, CAP found that the cost of losing an executive is astronomical -- up to 213 percent of the employee's salary.

7 Types of Separations Voluntary - When an employee decides to leave. Involuntary - When an employee s relationship is terminated.

8 Video - Voluntary Separation - Knowing When to Leave Your Job Please click on the link above regarding signs of when to leave your job.

9 Voluntary Separation Employees leave the workplace for a number of reasons. Voluntary and involuntary separation are two different spectrums of employment separation. Reasons for voluntary separation can include: Retirement New opportunity Relocation Dislike of position, organizational culture, coworkers, etc. Resignation

10 Involuntary Separations There are a number of reasons why employees are asked to leave their position, which include: Poor job performance Inability to successfully complete job tasks Engaging in unethical, illegal, or immoral conduct Violation of organizational policies Termination of role Excessive tardiness and absenteeism Conflict of interests

11 Video - Involuntary Separation Please click on the link above regarding involuntary separation tips.

12 Termination Checklist Pre-termination Review employee s files for post-employment obligations. Get IT involved. Carefully choose a location and time. During the Termination Explain to employee that his computer access has been cut off. Get company property back. Ask about discrimination. Post-termination Arrange for personal item pick-up. Give employee a termination letter. Give worker his final paycheck.

13 Termination Mistakes to AVOID Before terminating an employee, it is important to review the termination checklist, as presented in the previous PPT slide, and to do the following: Explain why the employee is being terminated Handle terminations in a similar manner (no difference between employees). Treat the employee well. Not taking action (i.e., not firing).

14 Preventing Unemployment Claims Unemployment claims can be costly in terms of money and time. Therefore, preventing unnecessary unemployment claims is important. Remember to do the following: Have Clear Written and Signed Policies Document Violations Conduct a Termination Meeting Dealing with Unemployment (handle ASAP)

15 Layoffs A layoff is the elimination of a position, the reduction of a position's percent time, or a reduction of the number of months the position works annually due to a lack of work, a lack of funds and/or because of a reorganization.

16 Managing Layoffs - Legal Issues to Consider There are a number of legal issues for employers to consider when laying off employees. These legal issues will be further discussed in the next video slide. Worker Adjustment and Retraining Notification Act (WARN Act) Family and Medical Leave Act (FMLA) Uniformed Service Employment and Reemployment Rights Act (USERRA) COBRA

17 Video - Layoffs Please click on the link above regarding employee layoffs.

18 Layoff versus Termination As described in the video, there is a major difference between laying off an employee and terminating an employee. When in doubt, remember to consult legal expertise regarding how to properly layoff versus terminate. An inability to effectively classify a LAYOFF versus a TERMINATION can lead to legal trouble.

19 Rightsizing Flexible rightsizing involves a variety of practices that have served many organizations as an alternative to (or a step to be taken before or in conjunction with) job cuts.

20 Examples of Flexible Rightsizing There are a number of ways to rightsize in your organization. Please see below: Furloughs - voluntary and/or mandatory, time off without pay taken as occasional days or in chunks of time Reduced work classes - voluntary and/or mandatory reduction in work hours and salary which may include temporary reduction in benefits, such as 401(k) matching funds flexible rightsizing as a cost-effective Alternative to layoffs Sabbaticals - voluntary and/or mandatory unpaid or partially paid leaves of absence or time off, usually for a specified period of classes or months Telework - working some or all of one s standard hours from an off-site location (often at home), which is associated with increased productivity, job satisfaction, reduced utility and real estate costs. Pay cuts - voluntary or mandatory pay reductions for some or all of the workforce (often more significant contribution at the top ranks)

21 Long Term Effects of Organizational Changes Change in culture Morale issues Workplace insecurity Loss in productivity Lack of trust / respect for employer Loss of organizational loyalty Operating under fear

22 The Show Must Go On It is the responsibility of the HR Department, leaders, management, etc., to promote a culture of production and trust by addressing aspects of why the layoff or termination occurred. By effectively addressing the issue and promoting transparency, employees are more likely to move onward in their roles.