SEPARATION PROCESS Human resource management n n n

SEPARATION PROCESS Human resource management

n n n What is Separations ? Cost of employee separations. Benefits of employee separations. Types of employee separations. Rehabilitation of surplus employees.

Separation n Separation means cessation of service or agreement with the organization for one or other reason. The employee may be separated from the payroll of the company as a result of q q Resignation Discharge & Dismissal Suspension & Retrenchment Layoff

Human Resource Replacement Costs R e c r u i t m e n t C o s t S e l e c t i o n C o s t Training Cost Separation Cost A d v e r t i s i n g Interviewing O r i e n t a t i o n Separation Pay Campus Visit T g D i r e c t Training Cost B e n e f i t s Recruiter Time Reference Checks Trainers Time Unemployment Insurance Cost Search Firm Fees R e l o c a t i o n Less Productivity During Training Exit Interview e s t i n Outplacement Vacant Position

Benefits of employee separations n n Reduced labour costs Replacements of poor performances Increased innovation The opportunity for greater diversity

Types of employee separations Voluntary Involuntary Quits Layoffs Retirements Discharges Retrenchment

n Involuntary separations It occurs when an employer decides to terminate its relationship with an employee due to n n n Economic necessity or A poor fit between the employee and the organization. Voluntary separations A separation that occurs when an employee decides, for personal or professional reasons to end the relationship with the employer.

Types Of Voluntary Separations n There are two types of voluntary separations: q q Quits Retirement

Types Of Involuntary Separation n There are three types of involuntary separations q q q Discharge Layoff Retrenchment

n Discharge takes place when mgmt decides that there is a poor fit between an employee and the organization. It could be a result of q q n poor performance Or because of some unacceptable behavior Layoff means the “failure”, “refusal" or “inability” on the part of any employer to give employment to any number of workmen on account of shortage of raw material, accumulation of stock, breakdown of machinery or for any other reason.

n Retrenchment means “discharge of surplus labour or staff” by the employer on account of long period of layoff, or rationalization or improved machinery or automation of machines or similar other reasons.

Impact Of Layoff n n n Effects the morale of remaining employees Regions economic vitality Entire community suffers Investors are affected company’s image Difficult to attract & recruit highly skilled employees

Implementing A Layoff n n n Notifying employees ( before 7 days ) Developing layoff criteria Communicating to laid off employees Coordinating media relations Maintaining security Reassuring survivors of layoff

Alternatives to layoffs n Employment policies q q n Changes in job design q q q n Reduction through attrition Hiring freeze Transfer Relocation Job transfer Training

Outplacement n It is an HR program created to help separated employees deal with the emotional stress of job loss.

Goals of outplacement n n n Reducing the morale problem of employees who are about to be laid off. Minimizing the amount of litigation initiated by separated employees Assisting separated employees in finding new jobs