0acb6Module 5b

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Amity School of Business

11


BBA, 5th Semester

HUMAN RESOURCE MANAGEMENT


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MODULE 5:

RETENTION AND

SEPARATION


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CHAPTER CONTENT

Concept of Separation.

Procedure of Separations : Discharge, Retrenchment,Retirement, VRS, Layoff.

Promotion & Transfers.

Exit Interview

Attrition and Retention: Concept, Significance, Determinants

and strategies.


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Attrition/ TURNOVER

Employee turnover is the movement of employees across theboundary of an organization.

Defining Attrition rate: "the rate of shrinkage in size ornumber".

Turnover = (Number of staff leaving per year X 100) /Average number of staff.


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CLASSIFICATION OFTURNOVER

F

unctional Vs. Dysfunctional turnover.

Avoidable Vs. Unavoidable turnover.

Voluntary Vs. Non- voluntary turnover.


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Causes of Voluntary

Turnover

Quit

AlternativesInternal: New job possibilities

External: Job offers+

Desirability of LeavingLow job satisfaction

Shocks to employee

Personal reasons

+

Ease of LeavingFavorable labor market conditions

Low cost of living

+

Intention

to Quit

+


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CONSEQUENCES OFEMPLOYEE TURNOVER

NEGATIVE CONSEQUENCES

Recruitment & Selection costs.

Training & Development costs.

Organizational Disruption.

Demoralization of organizational membership.


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POSITIVE CONSEQUENCES

Increased performance.

Reduction of entrenched conflict.

Increased mobility & morale.

Innovation & adaptation.

CONSEQUENCES OFEMPLOYEE TURNOVER


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REASONS FOR ATTRITION

Monetary factors.

Lack of good working condition.

No flexible work schedule. Lack of support & respect.

Increase in favoritism.

Lack of appreciation.

Lack of challenge Mismatch between job and person.

Lack of feedback.

Stress from work & work-life imbalance.


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Organizational Practices ThatReduce Turnover

1) Frequently measure job satisfaction through surveys such asthe Job Descriptive Index.

One problem with job satisfaction surveys is that the leastsatisfied employees are not likely to respond to the survey.

Because they have already started to withdraw from theorganization, so they see little personal benefit incompleting the survey.


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2) Another method for retaining employees is throughsocialization

, this is the process of acquiring the knowledgeand behaviors needed to be a member of an organization.

Effective socialization occurs when employees are givencritical information that helps them understand theorganization. Such as the new employee orientation session.

As employees acquire information during the socializationprocess, their feelings of fit with the organization increase &thereby they are more likely to stay with an organization.

3) Perceived organizational support is another factor that

influences employee turnover. This is the beliefs, by the employees, that the organization

values their contribution and cares about their well-being.

Employees who perceive greater support are more committedto sticking with the organization and feel a stronger desire to

help the organization succeed.


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Employee Retention Employee Retention involves taking measures to encourage

employees to remain in the organization for the maximumperiod of time.

Hiring knowledgeable people for the job is essential for anemployer. But retention is even more important than hiring.

Employee retention is a process in which the employees areencouraged to remain with the organization for the

maximum period of time or until the completion of theproject.

Employee retention is beneficial for the organization as wellas the employee


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EMPLOYEE RETENTIONEmployee retention involves 5 major things:

Compensation

Environment

Growth

Relationship

Support


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IMPORTANCE OFEMPLOYEE RETENTION

The cost of turnover.

Loss of company knowledge.

Loss of company knowledge.

Interruption of customer services.

Interruption of customer services.

Turnover leads to more turnovers.

Turnover leads to more turnovers. Goodwill of Company.

Goodwill of Company.

Regaining efficiency.

Regaining efficiency.


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Retention tools Employee reward program

Career Development Program

Performance based Bonus Employee Referral Plan

Loyalty Bonus

Giving a voice to the Knowledge Banks

Employee Recreation

Gifts at some Occasions Making the managers effective and easily accessible

Increasing the organizations level of professionalism

Ensuring a match between authority and accountability

Designing a competitive compensation package


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Retention

Strategy

EmployeeRecreation

Accountability

Loyaltybonus

EmployeeReferralprogram

AppraisalObjective &Succession

planning

Flexible workarrangementsDiversity

Training

EmployeeReward

programs

CareerDevelopment

programPerformance

Based

bonus


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Various Retentionstrategies followed by

MNCs

Procterand Gamble India -Early responsibilities in careerFlexible and transparent organizational culture Globalopportunities through a variety of exposure and diverseexperiences Performance Recognition

American Express (India)- Strong global brand Value-basedenvironment Pioneer in many people practices NTPCLearning and growth opportunities Competitive rewardsOpportunity to grow, learn and implement Strong socialsecurity and employee welfare performance- oriented culture


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Johnson & Johnson -Strong values of trust, caring fairness,and respect within the organization Freedom to operate atwork Early responsibility in career Training and learningopportunities Visible, transparent and accessible leadersCompetitive rewards Innovative Human Resource programs

and practices

Glaxo Smith Kline Consumer Healthcare -Performance-driven Rewards Its belief in Growing our own timberComprehensive development and learning programs Flatorganization, where performance could lead to very quickprogression Challenging work context Competitive rewardsExhaustive induction and orientation program

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0acb6Module 5b