1. EMPLOYEE SEPARATIONS CHAPTER 6 MGT 3513 Introduction to Human Resource Management “My main job was developing talent. I was a gardener providing water and other nourishment to our top 750 people. Of course, I had to pull out some weeds, too.” Jack Welch Please remember to turn off and put away cell phones.

2. ANNOUNCEMENTS

3. Discussion Questions: The Office - - Halloween Episode  What criteria did Michael use to determine who would be fired (e.g., performance, seniority)? - no criteria; path of least resistance  Was this a termination or a layoff? This was a layoff.  Discuss several of the things Michael did wrong. – waited until the last minute, unprofessional, not confidential, tried to get other people to decide who to let go  Did Michael do anything correctly? – He cared  List potential advantages and disadvantages of telling an employee the reason s/he was fired. – the person might want to know what they need to do differently in the future; telling an employee why they are fired could lead to a lawsuit  Were there any security risks associated with the company’s termination process that should have been addressed? The fired EE threw a pumpkin at a car and could have been violent.

4. Employee Separations  Employee separations – when an employee is no longer a member of the organization  Voluntary separations (initiated by the employee)  Quits vs. Retirements (The company can plan for a retirement and have a new employee in place; a quit is hard to plan for & makes it harder for HR because they will have to re-fill the position on short notice)  Involuntary separations (initiated by the company)  Discharges (dismissal) – “firing” an employee  Layoffs – reducing the workforce to improve the bottom line  Downsizing- reducing scale/scope of business to improve the bottom line  Rightsizing – the most drastic of the 4; reorganization of the company

5. Other Terms to Know  Functional/Dysfunctional turnover  Functional turnover is good for the company (ex. A poor performer quitting)  Dysfunctional turnover is bad for the company (ex. Losing a really good employee)  Avoidable/Unavoidable turnover  Avoidable turnover is something the company could have avoided  Unavoidable turnover is something that the company could not have prevented

6. Example  Amanda has worked as an office manager for Dawgs Accounting for several years. She’s learned how to keep the office running smoothly. She decides to pursue a graduate degree and quits her job. The company is faced with a difficult situation in terms of finding a replacement because Amanda was an excellent employee.  Circle each term that applies to the situation  Voluntary/Involuntary  Functional/Dysfunctional  Avoidable/Unavoidable

7. Reasons for “rightful” discharge  Insubordination  Violating company policy  Lying on job application  Excessive lateness or absence  Low productivity  Incompetence  Negligence  Sleeping on the job  Violating safety rules  Stealing  Fighting  Gambling  Alcohol/drug use/possession on the job  Conviction of a crime  Job obsolescence  Economic downturn  Inability to perform essential duties of job

8. Employee Separations  Turnover rate is the rate at which employees leave the organization  Costs associated with employee separations  Recruitment, selection, & training of new employee; lost productivity; separation costs such as severance pay  Exit interviews  Conducted when an employee is leaving the organization to find out ways to improve the workplace

9. Employee Separations  Possible benefits of employee separations – opportunity to get new employees with fresh perspectives  Planning & conducting a meeting – plan then get to the point  Checklist example – good to have a list because the employee will probably be upset & there are certain things that should be discussed  http://www.teagr.org/pdffiles/toolkits/termchecklist.pdf http://www.teagr.org/pdffiles/toolkits/termchecklist.pdf Benefits Counseling Employer property Access to records Exit interview

10. Managing Layoffs  Alternatives to layoffs – things a company can do to avoid a layoff ◦ Employment policies  Natural attrition – occurs when employees leave for various reasons (ex. Moving because of spouse); not refilling position  Hiring freeze – not hiring new employees

11. Alternatives to Layoffs ◦ Changes in pay and benefits policies  Pay freeze – not giving raises  Pay cut – reduction in pay of workers ◦ Furloughs – requiring workers to take unpaid leave ◦ Early retirements – encouraging workers to retire earlier than they normally would have which can save the company money

12. Managing Early Retirements  Main features of early retirement policies  Short window of opportunity  Special financial incentive is offered  Problems that can occur if the organization offers early retirement  Too many or too few employees can take the organization up on the offer  Older employees might feel like you are forcing them to leave

13. Implementing a Layoff What is the WARN (Worker Adjustment & Retraining Notification Act)?  http://www.dol.gov/compliance/laws/comp-warn.htm http://www.dol.gov/compliance/laws/comp-warn.htm  Companies planning mass layoffs have to give employees warning ahead of time Types of layoff criteria  Seniority (most common) – the org. lets go of more recently hired employees  Performance – the org. lets go of the poor performers Communication – the organization should have a plan to clearly communicate with employees to let them know what is going on, especially before the press finds out Security concerns- org. needs to plan ahead, especially if they think an employee might get violent Layoff survivors  Often experience guilt because their friends/coworkers lost jobs;  They have higher rates of turnover & absenteeism

14. Outplacement  What is outplacement assistance?  Helping employees who need to find new jobs  Types of outplacement  Emotional support outplacement – helping employees deal with the emotional aspects of losing a job (ex., counseling)  Job-search assistance outplacement –helping employees gain skills (ex. Resume workshop, practice interviewing, connecting them with an employment agency)