Chapter 15
Wednesday, March 16, 2016 7:23 PM
Managing Turnover
- Reasons for Turnover
○ Downsizing/restructuring
○ Sought new challenges
○ Ineffective leadership
○ Poor relationship with manager
○ Improve work-life balance
○ Contributions weren't valued
○ Better compensation
○ Better fit for personal values
○ Better fit for skills
○ Company financially unstable
○ Company/job relocated
- Cost of Turnover
○ Separation Costs
§ Exit interviews
§ Administrative functions
§ Severance pay
○ Vacancy Costs
§ Net savings or costs incurred of increased overtime with the
use of temporary workers, and the loss of sales associated
with the vacancy
○ Replacement Costs
§ Cost of recruiting and hiring a replacement
○ Training Costs
§ Formal and informal training
- Reasons for Voluntary Turnover
○ Suboptimal hiring practices
○ Difficult managerial style
○ Lack of recognition
○ Lack of competitive compensation systems
○ Toxic workplace environments
○ Hobo phenomena (unexplained reasons)
, § Formal and informal training
- Reasons for Voluntary Turnover
○ Suboptimal hiring practices
○ Difficult managerial style
○ Lack of recognition
○ Lack of competitive compensation systems
○ Toxic workplace environments
○ Hobo phenomena (unexplained reasons)
○ It is important to understand why the employee has left
§ Exit interviews
§ Staff surveys
§ Annual HR review
Involuntary Turnover
- Progressive Discipline
○ 3 Foundations of fair and just discipline
§ Rules and Regulation
§ Progressive Discipline
§ Appeals Process
- Dismissal for Just Cause
○ Can often be demonstrated in cases of
§ Disobedience
§ Incompetence
§ Dishonesty
§ Insubordination
§ Fighting
§ Persistent absence or lateness
○ Cannot be assessed in isolation
○ Employee misconduct including abuse of sick leave, theft or
expense account fraud is a fundamental violation of the
employment relationship and can constitute just cause
○ Insubordination
§ Direct disregard of the boss' authority, refusal to obey the
boss' reasonable instructions
§ Deliberate defiance of clearly stated company policies, rules,
regulations and procedures
§ Public criticism of the boss
§ Contemptuous display of disrespect
§ Disregard for the chain of command, by going around the
supervisor
§ Participation in an effort to undermine and remove the boss
from power
- Layoff
○ Conditions of a layoff
Wednesday, March 16, 2016 7:23 PM
Managing Turnover
- Reasons for Turnover
○ Downsizing/restructuring
○ Sought new challenges
○ Ineffective leadership
○ Poor relationship with manager
○ Improve work-life balance
○ Contributions weren't valued
○ Better compensation
○ Better fit for personal values
○ Better fit for skills
○ Company financially unstable
○ Company/job relocated
- Cost of Turnover
○ Separation Costs
§ Exit interviews
§ Administrative functions
§ Severance pay
○ Vacancy Costs
§ Net savings or costs incurred of increased overtime with the
use of temporary workers, and the loss of sales associated
with the vacancy
○ Replacement Costs
§ Cost of recruiting and hiring a replacement
○ Training Costs
§ Formal and informal training
- Reasons for Voluntary Turnover
○ Suboptimal hiring practices
○ Difficult managerial style
○ Lack of recognition
○ Lack of competitive compensation systems
○ Toxic workplace environments
○ Hobo phenomena (unexplained reasons)
, § Formal and informal training
- Reasons for Voluntary Turnover
○ Suboptimal hiring practices
○ Difficult managerial style
○ Lack of recognition
○ Lack of competitive compensation systems
○ Toxic workplace environments
○ Hobo phenomena (unexplained reasons)
○ It is important to understand why the employee has left
§ Exit interviews
§ Staff surveys
§ Annual HR review
Involuntary Turnover
- Progressive Discipline
○ 3 Foundations of fair and just discipline
§ Rules and Regulation
§ Progressive Discipline
§ Appeals Process
- Dismissal for Just Cause
○ Can often be demonstrated in cases of
§ Disobedience
§ Incompetence
§ Dishonesty
§ Insubordination
§ Fighting
§ Persistent absence or lateness
○ Cannot be assessed in isolation
○ Employee misconduct including abuse of sick leave, theft or
expense account fraud is a fundamental violation of the
employment relationship and can constitute just cause
○ Insubordination
§ Direct disregard of the boss' authority, refusal to obey the
boss' reasonable instructions
§ Deliberate defiance of clearly stated company policies, rules,
regulations and procedures
§ Public criticism of the boss
§ Contemptuous display of disrespect
§ Disregard for the chain of command, by going around the
supervisor
§ Participation in an effort to undermine and remove the boss
from power
- Layoff
○ Conditions of a layoff
