1. Chapter 10
Employee Retention
and Terminations

2. Learning Objectives
After completing this chapter, you should be able to:
• Describe leadership strategies to enhance employee retention and productivity.
• Explain common procedures used in progressive discipline programs.
• Describe procedures for voluntary and involuntary termination.
• Explain the basics of unemployment compensation.

3. Leadership Strategies to Enhance Retention and Productivity
Select the Right Employees
Train Correctly
Supervise Effectively
Be an Employer of Choice

4. Progressive Discipline Procedures
What Is Progressive Discipline?
Common Steps in Progessive Discipline
Oral Warning

6. Written Warning
Probation

7. Improvement Timelines
Consistent Management Actions
Helping Employees Be Successful

8. Employee Terminations
Operating Impacts of Termination
Voluntary Termination
Involuntary Termination
Common Causes
Termination Process
Exit Interviews

10. Separation Checklists

13. Unemployment Compensation

14. 1. Describe leadership strategies to enhance employee retention and productivity.
Managers cannot control many causes of voluntary termination.
However, they can have an impact on reasons such as dislike of management strategies and workplace procedures.
Also, managers can eliminate some problems that lead to poor job performance and involuntary termination.
Managers must select the right employees and train and supervise them appropriately.
Management practices must allow employees to find pride and satisfaction in their work.
One way of doing this is to treat employees consistently and fairly.
Managers can create a reputation for their property as an “employer of choice” in which employees tell their friends and family members about the benefits of working at the organization.

15. 2. Explain common procedures used in progressive discipline programs.
All restaurant and foodservice operations should have written policies and procedures relating to an effective progressive discipline program.
Some employers use a formal progressive discipline process that consists of a series of steps that includes coaching, oral warnings, written warnings, probation, and termination.
An oral warning is all that is necessary to encourage many employees to improve.
Written documentation or probation may be necessary for others.

16. 3. Describe procedures for voluntary and involuntary termination.
Voluntary termination occurs when an employee decides to leave for personal reasons.
Involuntary termination occurs when managers terminate an employee for one or more of several reasons.
One reason is that the employee commits a terminable act that causes immediate termination.
Examples include disruptive or destructive behavior, harassment, and theft.
Other reasons for involuntary terminations include lack of work or funding, unsatisfactory performance, or violation of a company policy.
Employees should be given opportunities to improve through the establishment’s progressive discipline program.

17. Several steps should be used to terminate employees.
3. Describe procedures for voluntary and involuntary termination continued…
Several steps should be used to terminate employees.
The cause for termination must be identified, and proper documentation must be completed.
Necessary approvals for termination must be obtained and termination package documents compiled.
The termination meeting is followed by activities to ensure that the employee surrenders company property or receives personal property.
The final steps involve making adjustments to security as necessary and reviewing operational procedures involved in the cause for termination.
Employees should complete an exit interview to help managers learn more about any concerns, reasons for leaving, and suggestions about how the company can improve.

18. 4. Explain the basics of unemployment compensation.
Unemployment compensation is a program administered at the state level according to federal guidelines.
It provides benefits and income to workers who have become unemployed through no fault of their own.
There are numerous provisions to the laws that vary between states.
Documentation of terminations is important to explain performance problems in support of the operation’s termination decision and to help reduce the number of claims against the business.

19. Key Terms:
COBRA A law that gives workers who lose health insurance benefits the right to continue group health benefits for limited periods under certain situations.
Exit interview An interview with an employee who leaves voluntarily to help managers learn about any employee concerns, reasons for leaving, and suggestions about how the company can improve.
Insubordination Failure to follow reasonable instructions.
Involuntary termination A situation in which managers terminate an employee for one or more of four reasons: lack of work for the employee, lack of funding, unsatisfactory performance, or violation of
a company policy.
Probation (progressive discipline) A specific time period during which an employee must consistently meet job standards or other reasonable conditions imposed by his or her manager as a condition for
continued employment.

20. Key Terms continued:
Progressive discipline A process that involves a series of punishments that become more serious as unacceptable performance continues.
Separation checklist A list of activities to be completed for employees who are leaving the organization.
Structured interview An interview in which the manager asks a set of specific questions.
Terminable act An action by an employee that typically causes immediate termination.
Unstructured interview An interview in which the manager conducts a conversation with the employee without using any prepared questions.
Voluntary termination A situation in which an employee, for his or her own personal reasons, decides to leave the organization.

21. Key Terms continued:
W-2 income tax form An information return completed by employers and sent to the federal taxing authorities that is used to report wages and salaries paid to employees and the taxes withheld from them.
“Warm-body” syndrome The idea that any employee is better than no employee, leading to a fast hiring decision.
Wrongful discharge A legal action taken by a former employee against a previous employer, alleging that the discharge was in violation of state or federal antidiscrimination laws, public policy, or an implied contract, agreement, or written promise.

22. Chapter Images

23. Chapter Images continued