Human Resources Management WEEK 7 MANAGING EMPLOYEE SEPARATIONS

Managing Employee Separations, Downsizing, and Outplacement Identify the costs and benefits associated with employee

What Are Employee Separations? Employee separations – The termination of an employee’s membership in

What Are Employee Separations? The costs of employee separations Recruitment costs Selection costs Training

What Are Employee Separations? The benefits of employee separations Reduced labor costs Replacement of

Types of Employee Separations Voluntary separation – A separation that occurs when an employee

Types of Employee Separations Involuntary separation – A separation that occurs when an employer

Managing Early Retirements The features of early retirement policies Avoiding problems with early retirements

Managing Layoffs Alternatives to Layoffs – Employment Policies Attrition – An employment policy designed

Managing Layoffs Develop layoff criteria Communicating to laid-off employees Coordinating media relations Maintaining security

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Human Resources Management WEEK 7 MANAGING EMPLOYEE SEPARATIONS, DOWNSIZING, AND OUTPLACEMENT

Managing Employee Separations, Downsizing, and Outplacement 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

What Are Employee Separations? Employee separations – The termination of an employee’s membership in an organization. Turnover rate – The rate of employee separations in an organization.

What Are Employee Separations? The costs of employee separations Recruitment costs Selection costs Training costs Separation costs

What Are Employee Separations? The benefits of employee separations Reduced labor costs Replacement of poor performers Increased innovation Opportunity for greater diversity

Types of Employee Separations Voluntary separation – A separation that occurs when an employee decides, for personal or professional reasons, to end the relationship with the employer. Quits Retirements

Types of Employee Separations Involuntary separation – A separation that occurs when an employer decides to terminate its relationship with an employee due to (1) economic necessity or (2) a poor fit between the employee and the organization. Discharges Layoffs, downsizing, and rightsizing

Managing Early Retirements The features of early retirement policies Avoiding problems with early retirements A longtime employee who has performed satisfactorily over many years suddenly receives an unsatisfactory performance evaluation A manager indicates that senior employees who do not take early retirement may lose their jobs anyway because a layoff is likely in the near future Senior employees notice that their most recent pay raises are quite a bit lower than those of other, younger workers who are not eligible for early retirement

Managing Layoffs Alternatives to Layoffs – Employment Policies Attrition – An employment policy designed to reduce the company’s workforce by not refilling job vacancies that are created by turnover. Hiring freeze – An employment policy designed to reduce the company’s workforce by not hiring any new employees into the company.

Managing Layoffs Develop layoff criteria Communicating to laid-off employees Coordinating media relations Maintaining security Reassuring survivors of the layoffs