C202 Chapter 2 Questions With
Correct Answers!!
Avoidable
Preventable turnover (e.g., turnover due to a lack of promotion opportunities).
Unavoidable
Unpreventable turnover (e.g., turnover due to the relocation of the employee's spouse).
optimal turnover
the turnover level that produces the highest long-term levels of productivity and
business improvement
Downsizing
is a permanent reduction of multiple employees intended to improve the efficiency or
the effectiveness of the firm
layoff
also known as a reduction in force, is a temporary reduction of employees
An implied employment contract occurs when
an employer's personnel policies, handbooks, or other materials indicate that it will only fire
an employee for good cause or specify a procedural process for firing.
When the economy is softer and fewer organizations are hiring
it is harder for employees to leave, and turnover rates are usually lower.
If the economy is good and jobs are plentiful
retaining all employees is more difficult.
Developing a _____________ that addresses the causes of turnover can improve the
retention of critical employees and employees in key positions
retention plan
,Honesty in Recruiting
Giving potential employees realistic job previews that communicate potentially undesirable as
well as positive aspects of the job and organization (e.g., a need for occasional travel or late
hours) during the recruiting process reflects honesty and fairness. Research has found that the
effects of a realistic preview on voluntary turnover reduction occur through trust.102 Because
unmet expectations about the job and the organization can lead to dissatisfaction, which leads
to turnover,103 realistic job previews increase the likelihood that expectations will be met and
can thus reduce subsequent turnover.104
Job Challenge
To successfully compete in the semiconductor industry, Texas Instruments needs the best and
brightest employees, but top engineers are hard to find. To maximize employee retention, the
company's managers receive training in engaging employees to make sure they feel challenged
and appreciated. Managers also regularly consider assignment changes that make the best use of
their direct reports' skills, and they continually "re-recruit" their best people, regularly checking
to ensure they are being challenged, helping them develop in their jobs, and exposing them to
other opportunities that might better use their skills. Nurturing and keeping top employees is
even a component of managers' performance reviews. Cross-training programs for employees
can also support professional development while reducing turnover.
Higher Quality Supervisors
One of the best retention management strategies can be the hiring and development of better
bosses. Supervisors have a considerable impact on subordinates' turnover. Creating a climate of
respect, fairness, and trust can positively affect employee retention, morale, and even
employment liability by reducing stress, increasing commitment to the organization and to
their supervisor, and improving performance
Flexible Work
Work flexibility can also improve retention. Alternative job arrangements can give employees
greater flexibility and help them to balance life and work. Flextime, telecommuting, and letting
employees work a compressed workweek can help employees better balance work and life
, responsibilities and make it possible for them to continue working. In 2014, 86 percent of the
2014 Best Companies to Work For offered employees some type of flexible schedule, including
working from home at least one day a week. Another 78 percent of the top-ranked companies
allowed employees to work a compressed workweek, for example four 10-hour days rather than
five eight-hour days. Another 51 percent of the 2014 Best Companies offered job sharing
arrangements, letting two employees share a single position.10
Location
Locating near companies that employ similar talent can also be strategic. A technology
company in Silicon Valley might be able to acquire needed talent easily, and the ease with
which employees can switch employers can help it keep its ideas fresh. However, the same risk
of high turnover could compromise a research and development company that needs employees
to stay with projects for a long time. Establishing a separate long-term research facility in a
location where the skills of the team are not in as high demand, such as a rural community, can
increase employee retention rates, although initial candidate attraction may be more
challenging. Turnover at an Intersil semiconductor facility in rural Pennsylvania averaged only
2 percent, 18 percent lower than the industry average.107
Pay and Benefits.
Competitive pay and benefits help attract and retain employees. However, even if a company has
good benefits, if employees don't understand, value, or appreciate them, they are unlikely to
influence retention. Consulting firm Watson Wyatt found that companies that offer rich benefits
but have poor communication practices had an average 17 percent turnover rate for top-
performing employees. Companies that offered less costly benefits but successfully
communicated them had an average top talent turnover rate of 12 percent. The best situation,
combining rich benefits with effective communication, was associated with an even lower 8
percent turnover rate for top performers.109 A pay-for-performance plan can also help reduce
turnover among top performers and improve the company's return on what it pays
employees.110
Create Accountability
Correct Answers!!
Avoidable
Preventable turnover (e.g., turnover due to a lack of promotion opportunities).
Unavoidable
Unpreventable turnover (e.g., turnover due to the relocation of the employee's spouse).
optimal turnover
the turnover level that produces the highest long-term levels of productivity and
business improvement
Downsizing
is a permanent reduction of multiple employees intended to improve the efficiency or
the effectiveness of the firm
layoff
also known as a reduction in force, is a temporary reduction of employees
An implied employment contract occurs when
an employer's personnel policies, handbooks, or other materials indicate that it will only fire
an employee for good cause or specify a procedural process for firing.
When the economy is softer and fewer organizations are hiring
it is harder for employees to leave, and turnover rates are usually lower.
If the economy is good and jobs are plentiful
retaining all employees is more difficult.
Developing a _____________ that addresses the causes of turnover can improve the
retention of critical employees and employees in key positions
retention plan
,Honesty in Recruiting
Giving potential employees realistic job previews that communicate potentially undesirable as
well as positive aspects of the job and organization (e.g., a need for occasional travel or late
hours) during the recruiting process reflects honesty and fairness. Research has found that the
effects of a realistic preview on voluntary turnover reduction occur through trust.102 Because
unmet expectations about the job and the organization can lead to dissatisfaction, which leads
to turnover,103 realistic job previews increase the likelihood that expectations will be met and
can thus reduce subsequent turnover.104
Job Challenge
To successfully compete in the semiconductor industry, Texas Instruments needs the best and
brightest employees, but top engineers are hard to find. To maximize employee retention, the
company's managers receive training in engaging employees to make sure they feel challenged
and appreciated. Managers also regularly consider assignment changes that make the best use of
their direct reports' skills, and they continually "re-recruit" their best people, regularly checking
to ensure they are being challenged, helping them develop in their jobs, and exposing them to
other opportunities that might better use their skills. Nurturing and keeping top employees is
even a component of managers' performance reviews. Cross-training programs for employees
can also support professional development while reducing turnover.
Higher Quality Supervisors
One of the best retention management strategies can be the hiring and development of better
bosses. Supervisors have a considerable impact on subordinates' turnover. Creating a climate of
respect, fairness, and trust can positively affect employee retention, morale, and even
employment liability by reducing stress, increasing commitment to the organization and to
their supervisor, and improving performance
Flexible Work
Work flexibility can also improve retention. Alternative job arrangements can give employees
greater flexibility and help them to balance life and work. Flextime, telecommuting, and letting
employees work a compressed workweek can help employees better balance work and life
, responsibilities and make it possible for them to continue working. In 2014, 86 percent of the
2014 Best Companies to Work For offered employees some type of flexible schedule, including
working from home at least one day a week. Another 78 percent of the top-ranked companies
allowed employees to work a compressed workweek, for example four 10-hour days rather than
five eight-hour days. Another 51 percent of the 2014 Best Companies offered job sharing
arrangements, letting two employees share a single position.10
Location
Locating near companies that employ similar talent can also be strategic. A technology
company in Silicon Valley might be able to acquire needed talent easily, and the ease with
which employees can switch employers can help it keep its ideas fresh. However, the same risk
of high turnover could compromise a research and development company that needs employees
to stay with projects for a long time. Establishing a separate long-term research facility in a
location where the skills of the team are not in as high demand, such as a rural community, can
increase employee retention rates, although initial candidate attraction may be more
challenging. Turnover at an Intersil semiconductor facility in rural Pennsylvania averaged only
2 percent, 18 percent lower than the industry average.107
Pay and Benefits.
Competitive pay and benefits help attract and retain employees. However, even if a company has
good benefits, if employees don't understand, value, or appreciate them, they are unlikely to
influence retention. Consulting firm Watson Wyatt found that companies that offer rich benefits
but have poor communication practices had an average 17 percent turnover rate for top-
performing employees. Companies that offered less costly benefits but successfully
communicated them had an average top talent turnover rate of 12 percent. The best situation,
combining rich benefits with effective communication, was associated with an even lower 8
percent turnover rate for top performers.109 A pay-for-performance plan can also help reduce
turnover among top performers and improve the company's return on what it pays
employees.110
Create Accountability
