1. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1 Managing employee retention and turnover Chapter 15

2. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-2 Managing employee retention and turnover  Objectives ÙDistinguish between involuntary and voluntary turnover, and discuss how each of these forms of turnover can be leveraged for competitive advantage. ÙList the major elements that contribute to perceptions of justice and how to apply these in organisational contexts involving discipline and dismissal.

3. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-3 Managing employee retention and turnover  Objectives (continued) ÙSpecify the relationship between job satisfaction and various forms of job withdrawal, and identify the major sources of job satisfaction in work contexts. ÙDesign a survey feedback intervention program and use this to promote retention of key organisational personnel.

4. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-4 Necessary conditions for linkage between employees and organisational performance:  When employees possess knowledge and skills the managers lack.  When employees are motivated to apply this skill and knowledge through discretionary effort.  When the firm’s business or production strategy can only be achieved when employees contribute such discretionary effort.

5. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-5 Employee turnover  Involuntary turnover ÙTurnover initiated by the organisation (often among people who would prefer to stay).  Voluntary turnover ÙTurnover initiated by employees.

6. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-6 Managing involuntary turnover: principles of justice  Outcome fairness  Procedural fairness  Interpersonal (or interactional) fairness

7. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-7 Managing involuntary turnover: six determinants of procedural justice  Consistency  Bias suppression  Information accuracy  Correctability  Representativeness  Ethicality  See Table 15.1 for more detail

8. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-8 Managing involuntary turnover: four determinants of interactional justice  Explanation  Social sensitivity  Consideration  Empathy  See Table 15.2 for more detail

9. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-9 Managing involuntary turnover: employee assistance programs (EAPs)  Employer programs that attempt to ameliorate problems encountered by employees who are drug or alcohol dependent, or psychologically troubled.

10. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-10 Managing involuntary turnover: outplacement counselling  Aims to help employees deal with the psychological issues associated with job loss and help them to find new employment.

11. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-11 Managing voluntary turnover: job withdrawal  A set of behaviors enacted by dissatisfied individuals in order to avoid the work situation.  Three categories: ÙBehavior change ÙPhysical job withdrawal ÙPsychological job withdrawal  The key driving force is job dissatisfaction.

12. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-12 Job satisfaction  A pleasurable feeling that results from the perception that one’s job fulfills or allows for the fulfillment of one’s important job values.

13. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-13 Managing voluntary turnover: Figure 15.1. An overall model of the job dissatisfaction–job withdrawal process

14. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-14 Sources of job dissatisfaction and strategies for employee retention  Personal disposition ÙInterventions include: Üselection processes Ühealth maintenance and stress management programs Üorganisational culture change Üemployee assistance programs (EAPs).

15. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-15 Sources of job dissatisfaction and strategies for employee retention  Tasks ÙTask complexity ÙPhysical strain and exertion ÙTask meaningfulness ÙInterventions include: Üjob enrichment Üwork teams Üjob rotation Üjob customisation.

16. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-16 Sources of job dissatisfaction and strategies for employee retention  Roles ÙRole ambiguity ÙRole conflict ÙRole overload ÙInterventions include: Üthe role analysis technique. Üsee Figure 15.3 for more detail

17. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-17 Sources of job dissatisfaction and strategies for employee retention  Supervisors and coworkers ÙStrategies include: Üorganisational culture of shared values Üsocial support Üclarification of goals and paths.

18. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-18 HRM activities and strategies for employee retention  Selection and orientation programs Ù‘Employee-organisation fit’ is important. ÙStrategies include: Üinvolvement of new employees in social activities Üinvolvement of employees’ families in social activities Üinvolvement of senior managers in orientation of new employees Üuse of ‘mentors’ to assist new employees Üaccountability of line managers for orientation of new employees.

19. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-19 HRM activities and strategies for employee retention  Employee development and career management ÙStrategies include: Ücareer counselling Üprovision of supportive resources Üchanging the image and perception of long-term (managerial) careers in the organisation.

20. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-20 HRM activities and strategies for employee retention  Pay and benefits ÙStrategies include: Ühigher pay levels Üfair pay structure Übonuses and/or incentives Ünon-financial rewards Üsocial ties and teams.

21. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-21 Measuring and monitoring job satisfaction  Workers’ self-reports ÙJob Descriptive Index ÙEmployee research Üannual surveys of employee attitudes and opinions Üexit interviews Üexit surveys

22. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-22 Summary  Employee retention and turnover have become important strategic and HRM issues in many organisations.  Organisations can strategically manage the separation process so that involuntary turnover is implemented in a manner that minimises or prevents negative outcomes, and voluntary turnover among high performers is kept to a minimum.

23. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 15-23 Summary (continued)  Voluntary turnover can be minimised by a range of employee retention strategies and interventions, measuring and monitoring employee levels of satisfaction with critical facets of job and organisation, and addressing any problems identified by such surveys.