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Employee Separations, Turnover, & Reduction in Force

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Presentation on theme: "Employee Separations, Turnover, & Reduction in Force"— Presentation transcript:

1 Employee Separations, Turnover, & Reduction in Force
Kaylani Espinoza, Heather Cantada, Irini Tsellas, Crystal Deyo, and Eduardo Magdaleno

2 Uncovering the Nuances of Referral Hiring: How Referrer Characteristics Affect Referral Hires’ Performance and Likelihood of Voluntary Turnover Kaylani Espinoza

3 Key Terms Referrer Performance at Hire-How the referrer is performing at referral hire start Referrer Tenure at Hire- How long the referrer has been with the company Referrer Employment- Whether or not the referrer remains employed with the company Referrer-Referral Hire Job Congruence- The degree of correspondence between the referrer and referral hires’ jobs

4 Key Terms Referrer Quality=(Referrer Performance + Tenure at Hire)
Referrer Post-Hire Accessibility= (Referrer Employment Status + Referrer-Referral Hire Job Congruence Key Terms Should i add theories? Should i add CSR HERE?

5 To examine if the characteristics of the referrer, specifically their performance, employment, and job congruence, affect the referral hires' likelihood of voluntary turnover. Focus

6 Method 386 referrer-referral hire CSR pairs
Sample 386 referrer-referral hire CSR pairs Separated by client, client program, and team Referral Hire Characteristics Referrer Characteristics

7 Method 2 year observation at a U.S call center
Setting 2 year observation at a U.S call center Customer Service Representative(CSR) longitudinal data was provided weekly on performance and turnover Supplemental Analysis: Referral Bonus Plan $100 lump sum twice $15 biweekly

8 Measures Voluntary Turnover Likelihood Referrer Performance
Survival Analysis- models the probability of an employee leaving voluntarily over the duration of the person's employment Referrer Performance Call/Hour Analysis Should i add slide on performance measures?

9 Model

10 Model

11 Model

12 Results Referral hires are less likely: $15 bonus:
To voluntarily leave than non referral hires. To quit voluntarily as long as their referrer remained employed $15 bonus: Referral hires w/ similar jobs as their referrer had lower turnover propensities than those under the $100 bonus option

13 Results Referral hires from high performers are more likely:
To leave than those from average performers To be higher performers No support found for: Referrer tenure affecting referral hire voluntary turnover Job congruence relating to referral hires’ turnover propensity

14 Increase referrals by giving bonuses, gift cards, trips
Create a sense of community/ team environment Follow-up with referral hires during a shock (referrer turnover) Use performance-based bonuses Offer career-development opportunities Take-home Message

15 The Impact of Motivation, Empowerment, and Skill-enhancing Practices on Aggregate Voluntary Turnover: The Mediating Effect of Collective Affective Commitment Heather Cantada

16 Key Terms Collective affective commitment - shared mindset among collective individuals regarding their employer characterized by the feelings of loyalty and a desire to invest mental and physical energy in helping the organization achieve its goal. Motivation- enhancing practices - regular feedback, individual/group incentives, merit pay, etc. Empowerment-enhancing practices - information sharing, participation in decisions, etc. Skill-enhancing practices - selection testing, recruiting, training, etc.

17 To examine if collective affective commitment has a mediating effect on motivation-, empowerment-, and skill-enhancing practices when it comes to aggregate voluntary turnover

18 Method Company that distributes and markets food
Level of analysis: job groups 93 job groups; 1,748 employees Method

19 Measures Affective organizational commitment
Aggregate voluntary turnover Motivation, empowerment, and skill indexes Control variables

20 MODEL

21 Results There was a negative relationship between collective affective commitment and aggregate turnover. Skill-enhancing practices are positively associated with aggregate turnover, but independent of collective affective commitment. Motivation and empowerment practices had a positive correlation to affective commitment; therefore, reducing aggregate voluntary turnover.

22 Managers should supplement their skill-enhancing practices with motivation- and empowerment- enhancing practices as it can: increase commitment and reduced turnover. If managers want to implement skill-enhancing practices, they must tailor their incentive programs. Take-home message Add if they do use skill-enhancing p

23 Understanding the Determinants of Who Gets Laid Off: Does Affective Organizational Commitment Matter? Irini Tsellas

24 Affective Organizational Commitment - relates to how employees feel valued, act as ambassadors and are generally great assets for organizations Task Performance - is a working process which occurs when an assigned person (or a workgroup of persons) effectuates a task's plan: this refers to a manner in which they realize the work which was projected for a task Key Terms

25 Economic Exchange Agreement - transactions between parties that represent discrete, financially oriented interactions Social Exchange Agreement - reciprocal obligations, attachments, and identification an employee has with the organization Key Terms (cont.) and develops over time from a series of exchanges between the individual and the organization

26 Method Data Collection - 3,057 respondents from 563 branches
Measures - 155 employees laid off in five year period (5% layoff rate) Method

27 Measures Affective Organizational Commitment Task Performance
Control Variable Analytical Procedures

28 MODEL

29 MODEL

30 Selection for Retention (Layoff Criteria)
Take - Home Message Selection for Retention (Layoff Criteria)

31 The Dynamic Nature of Collective Turnover and Unit Performance: The Impact of Time, Quality, and Replacements Crystal Deyo

32 Collective Turnover Turnover Dispersion Key Terms

33 To examine the dynamic properties of turnover rates through changing of quality & quantity losses, turnover dispersion, and changing quality & quantity of replacements.

34 Method Sample Testing 108,357 employees 988 units CET Theory

35 Measures Unit Performance Turnover rate & turnover rate exchange
Quality and Quantity of turnover Quality and Quantity of replacement hires

36 MODEL

37 Results

38 Results

39 Results Turnover rates increase job demands for employees
Depletion of unit collaboration Employees may experience “shock” Decrease in unit performance

40 The impacts of turnover can be reduced through strategic management decisions and staffing forecasting based on past turnover rate changes Take-home message Add if they do use skill-enhancing p

41 GONE TODAY BUT HERE TOMORROW: EXTENDING THE UNFOLDING MODEL OF TURNOVER TO CONSIDER BOOMERANG EMPLOYEES Eduardo Magdaleno

42 Key Terms: Boomerangs: employees who quit but are later rehired
Alumni: employees who quit but will not return Shocks: specific episodes that trigger thoughts of leaving or lingering dissatisfaction that ultimately ends with a decision to leave. Image violations: Occur when an individual’s values, goals, and strategies for goal attainment do not fit with those of the organization or those implied by the shock Undecided former employees (Undecideds): those who would consider returning could become Boomerangs in the future or they may remain Alumni.

43 Method: Company: PROSERV
Sample: Company: PROSERV Two Surveys sent out to current and ex-employees 980 current Boomerang employees in company A total of 452 surveys were completed (46% response rate) 19,875 former employees 3,164 surveys were completed (15.9% response rate)

44 Focus: Turnover: Examine the post-turnover relationship between employees who quit an organization temporarily or permanently.

45 Model:

46 Results

47 Results Continued: Path 1: Boomerangs Path 2: Alumni
Path 4a: Alumni Path 4b: Boomerangs

48 Take-Home Message: Boomerangs can save firm’s money when rehired.
Organizations should create different strategies to retain boomerangs and alumni. HRM should focus on keeping personal contact with boomerangers for possible future employment HRM should focus on retaining and satisfying current employees to avoid permanent leave. .

49 OVERALL TAKE-HOME MESSAGE
Employee Incentives Collective affective commitment Career Development Opportunities Follow-up with referral hires during a shock HRM should keep a personal connection with boomerangs for possible return in the future. HRM should prevent dissatisfaction with current employees to avoid increase in alumni employees


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