Managing Voluntary Terminations 10 Human Resources Management and Supervision OH 10-1

Employment Cycle The employment cycle must begin all over as employees leave the organization and create the need for additional staff members. Instructor’s Notes Two types of termination are voluntary (the staff member decides to leave) and involuntary (the operation asks the employee to leave). Two concerns when managing termination are assuring that employees return all company items, and conducting exit interviews. Suggest that the essential tasks in the termination process can be identified in a termination checklist.

Employment Cycle Two types of termination: Voluntary (the staff member decides to leave) and Involuntary (the operation asks the employee to leave). Two concerns when managing termination: Assuring that employees return all company items, and Conducting exit interviews. Essential tasks in the termination process can be identified in a termination checklist Instructor’s Notes Two types of termination are voluntary (the staff member decides to leave) and involuntary (the operation asks the employee to leave). Two concerns when managing termination are assuring that employees return all company items, and conducting exit interviews. Suggest that the essential tasks in the termination process can be identified in a termination checklist.

Termination Checklist Used to confirm the following Applicable items are returned. Consolidated Omnibus Budget Reconciliation Act (COBRA) forms are completed. Any outstanding work is completed. Loans or salary advances are to be paid. Paperwork for the final pay check is completed. Instructor’s Notes Indicate that there are additional issues addressed in an employee termination checklist.

Additional Items in Termination Checklist Delivering the employee’s final paycheck Reporting about subordinates (if terminating employee is a supervisor) Removing the employee’s ID from computer systems Returning keys or uniforms Exhibit 10a, page 248 in the text, show a sample employee termination checklist Instructor’s Notes If applicable, refer students to Exhibit 10a (page 248) in the chapter to review a sample employee termination checklist. Indicate that there are several purposes of exit interviews.

Purposes of Exit Interviews Acknowledge conclusion of person’s work. Provide information to the operation. Determine whether employee is angry, and if a lawsuit may arise. Instructor’s Notes Indicate that basic information should be gathered during an exit interview.

Exit Interview Information Basic information: names, current position, initial date of hire, length of employment, and interview date. Reason for leaving Areas of satisfaction/dissatisfaction Effectiveness of orientation/training Assessment of the employment relationship Effectiveness of supervisory style Instructor’s Notes Basic information includes the employee’s and exit interviewer’s names, current position, initial date of hire, length of employment, and interview date. Indicate that there are several methods for conducting exit interviews.

Exit Interview Methods Face-to-face Telephone Computer/based (online) Paper Exhibit 10c (pages 252–253) reviews the “pros” and “cons” of these four interview methods Instructor’s Notes If applicable, refer students to Exhibit 10c (pages 252–253) in the chapter to review the “pros” and “cons” of these four interview methods. Indicate that face-to-face (in-person) interviews are the most popular in restaurant and foodservice operations.

Exit Interview Formats Structured interviews Designed to collect specific information Unstructured interviews Provides an opportunity for the employee to discuss a wide range of subjects Exhibit 10d, page 255, Sample Exit Interview Form Instructor’s Notes If applicable, refer students to Exhibit 10d (page 255) in the chapter to review questions in a sample exit interview form. Indicate that open-ended questions that enable the employee to provide answers in an unstructured way can also be very useful. If applicable, note that questions 1, 2, 3, 6, 8, 9 and 10 in the sample exit interview form (Exhibit 10d) are open-ended questions. Note that it is important to consider when and where exit interviews should be conducted.

Exit Interviews—When and Where? Near, but not on, the employee’s last day The employee’s last day at work can be difficult, emotional, and stressful and, if the supervisor learns information that should be investigated further, there may not be time to do so if the interview is conducted on the last day. Where In a private place free from distractions Instructor’s Notes The employee’s last day at work can be difficult, emotional, and stressful and, if the supervisor learns information that should be investigated further, there may not be time to do so if the interview is conducted on the last day. Ideally, only interview participants should be able to see or hear any part of the exit interview. Ask the following question, “Who should conduct the exit interview?”

Who Should Conduct the Interview? Instructor’s Notes It is not typically practical to use an outside consultant. In an operation with a human resources department, someone with this responsibility who is trained to conduct interviews will likely to be the “best” choice. Using the employee’s direct supervisor to conduct an interview is “better than nothing,” but if the relationship between the terminating employee and the supervisor has not been good, it may be difficult to obtain accurate information. Ask the following question, “What type of skills does an effective interviewer have?”

Exit Interview Skills The interviewer should establish a relaxed, professional, and private tone to help the employee feel safe about sharing honest reactions. The interview should begin by explaining its purpose and how the information will be used. Communication (including listening) Question-asking skills Note recording skills Patience Instructor’s Notes Indicate that the interviewer should establish a relaxed, professional, and private tone to help the employee feel safe about sharing honest reactions. Indicate that the interview should begin by explaining its purpose and how the information will be used. Ask the students to answer the following questions.

Evaluating Exit Interview Information Step 1 – Review and categorize. Determine the best categories. First review information that may suggest legal problems. Provide and record information that allows comparisons between exit interviews. Instructor’s Notes Note that there are many ways to categorize exit interview information. If applicable, refer students to Exhibit 10g (page 260) in the chapter for examples. Indicate the second step in evaluating exit interview information is to gather additional information as needed.

Evaluating Exit Interview Information continued Step 2 – Gather additional information. Some information may need to be clarified. Talk with the employee again, if possible. Observe other employees’ performance/behavior. Talk with the employee’s immediate supervisor/coworkers. Analyze employee records. Review other documents and data. Expensive investigations of every issue noted are not always practical/necessary. Instructor’s Notes Ways to clarify information include: Talk with the employee again, if possible. Observe other employees’ performance/behavior. Talk with the employee’s immediate supervisor/coworkers. Analyze employee records. Review other documents and data.

Evaluating Exit Interview Information continued Step 3 – Look for patterns. Consider whether the employee was a good fit for the job. Total and compare the responses from persons who had the same job or same level of responsibility. Instructor’s Notes Indicate that an illustration of how exit interview information can be analyzed will be helpful at this point.

Sample Information Analysis Reason Cited Servers Bussers Ast. Manager Dishwashers Prep Cooks Chefs Total Safety Low Compensation 1 2 9 Scheduling Problems 5 3 Management Difficulties 10 8 6 31 Instructor’s Notes Point out that the table on the slide is only a portion of Exhibit 10h. If applicable, indicate that this information is in Exhibit 10h (page 261) in the chapter. Ask students to note that common reasons for termination are cited (left-hand margin), and that the number of employees in each of the identified positions who stated this reason is also reported. Ask students to interpret the information shown in Exhibit 10h. Also, if applicable, ask them about additional potential reasons why staff members might leave the organization.

Exit Interviews This manager is thanking a departing employee for participating in the exit interview, and for helping the operation while she was a staff member. Additional Thoughts There is an old saying that, “You can’t solve a problem until you are first aware of it.” Exit interview information can be used to identify where and why problems resulting in employee turnover are occurring.

Using Exit Interview Information After the biggest problems are known, they can be addressed. Instructor’s Notes Note that numerous factors can affect the priority for problem resolution.

Factors that Affect Problem Resolution Priorities Problems that may result in legal claims or lawsuits Policies or business plans that may dictate priorities Return on investment (time, cost, and effort versus benefit) Instructor’s Notes By carefully analyzing exit interview information, managers can establish plans for appropriate work-related changes with specific supervisors or employees as needed. Point out that some issues identified through exit interview information might be affected by other factors. Ask, “How might policies and/or business plans impact the priority of resolving the issue of low compensation identified in Exhibit 10h?” Ask students to answer the following questions.

Key Term Review Consolidated Omnibus Budget Reconciliation Act (COBRA)—federal regulation that requires insurance companies to continue offering eligible employees who are no longer employed the opportunity to continue participating in group health insurance coverage for a specific time period if the employee pays the full amount of the premiums Exit interview —interview with an employee who is leaving to determine whether the operation can be improved Involuntary termination —process of employee termination that occurs when the operation requires the employee to leave Open-ended questions —questions that enable the employee to provide answers in an unstructured way Instructor’s Notes Consolidated Omnibus Budget Reconciliation Act (COBRA)—federal regulation that requires insurance companies to continue offering eligible employees who are no longer employed the opportunity to continue participating in group health insurance coverage for a specific time period if the employee pays the full amount of the premiums Exit interview—interview with an employee who is leaving to determine whether the operation can be improved Involuntary termination—process of employee termination that occurs when the operation requires the employee to leave Open-ended questions—questions that enable the employee to provide answers in an unstructured way Indicate that several additional key terms were discussed in the chapter.

Key Term Review continued Structured interview — interview with questions that are designed to collect specific information Termination checklist —document that lists all termination requirements and has space for the appropriate manager to sign when these tasks have been completed Unstructured interview —interview process that allows the employee to address a wide range of subjects Voluntary termination —type of termination that occurs when the staff member decides to leave Instructor’s Notes Structured interview—interview with questions that are designed to collect specific information Termination checklist—document that lists all termination requirements and has space for the appropriate manager to sign when these tasks have been completed Unstructured interview—interview process that allows the employee to address a wide range of subjects Voluntary termination—type of termination that occurs when the staff member decides to leave