EMPLOYEE SEPARATION & RETENTION

CHAPTER: 13
BOOK: JEFFREY A MELLO

V
CONTENTS
1. INTRODUCTION
2. EMPLOYEES SEPARATION
2.1. DEFINITION
2.2. TYPES OF SEPARATION
2.3. REASONS
2.4. PROS AND CONS
3. EMPLOYEES RETENTION
3.1. DEFINITION
3.2. REASONS
3.3. HOW AND WHO
3.4. PROS AND CONS
INTRODUCTION

Employees retention and separation dose not have -till now- the
enough recognition like the remaining HR functions and activities,
although it considers to be one of the most important functions as it
affect directly in the performance of the organization.
INTRODUCTION

The human capital considers to be one of the most important assets in

any organization, that could be a competitive advantage for the
organization, to compete, organizations must ensure:
 Good performers are motivated to stay.

 low performers are allowed, encouraged or if necessary, forced to

leave
EMPLOYEES SEPARATION
DEFINITION :

Employees separation have many definitions, but all gives the same meaning and
results of separation:

 The end of an employment relationship in a number of ways that virtually mean

the same thing to a person that the employee no longer works for the company.
 Separation is a situation when the service agreement of an employee with
his/her organization comes to an end and employee leaves the organization.
EMPLOYEES SEPARATION

Types of Separation :

SEPARATION

VOLUNTARY INVALUNTARY
EMPLOYEES SEPARATION
TYPE 1: VOLUNTARY SEPARATION
Voluntary separation, which normally begins after a request is placed in this regard by the
employee, can happen due to two reasons:

 Professional reasons
Employees may seek separation when they decide to seek better positions, responsibilities
and status outside the present organization.
 Personal reasons

The important personal reasons for voluntary separation are relocation for family reasons like
marriage of the employees and health crisis of family members, maternity and child-rearing.
EMPLOYEES SEPARATION
REASONS:
Most of employees follows the Maslow's
hierarchy of needs, they searches to fulfill these
needs in potential organizations.

As long as these need didn't fulfill he will never

feel the satisfaction.

This hierarchy considers to be the evaluation

Criteria for the employee to compare between
the organization according to
EMPLOYEES SEPARATION
REASONS:
Leaving an unsatisfying Job:
 Supervisors and co workers attitude

 The job or workplace wan not as expected.

 The mismatch between job and person.

 Too little coaching and feedback.

 Too few growth and advancement opportunities.

 Feeling devalued and un-recognized.

 Stress from overwork and work-life imbalance.

 Loss of trust and confidence in senior leaders.

EMPLOYEES SEPARATION
REASONS:
Leaving for something better:
 Typically, means employee has found a job that is better

in pay and or job satisfaction.

Following plan:
A life Plan (i.e., start own business)
Leaving without a plan:
Shock Event (i.e., a colleague is promoted to a position
an employee wanted, and results in that employee
leaving)
EMPLOYEES SEPARATION
TYPES 2: INVOLUNTARY SEPARATION

Involuntary separation is caused by the factors which

remain beyond the purview of the employees. However,
these factors may be classified into.

1. Health problems
Major health problems that make the employees invalid
or unfit to continue in the profession.
EMPLOYEES SEPARATION
TYPES 2: INVOLUNTARY SEPARATION

2. Behavioral problems
An employee's objectionable and unruly behavior
within the organization may also lead to his involuntary
separation from the organization.

3. Organizational problems
Organizational problems are another important factor
that contributes to the involuntary separation of
employees.
EMPLOYEES SEPARATION
ORGANIZATIONAL PROBLEMS
Retirement:
Retirement is the point where a person stops employment completely. A person may also
semi-retire by reducing work hours.
Dismissal:
Dismissal is where the employer chooses to require the employee to leave, generally for a
reason which is the fault of the employee.
Layoff :
Is the temporary suspension or permanent termination of employment of an employee or
(more commonly) a group of employees for business reasons, such as when certain positions
are no longer necessary or when a business slowdown occurs.
EMPLOYEES SEPARATION
ORGANIZATIONAL PROBLEMS
Retrenchment:
means “discharge of surplus labor or staff” by the employer on account of long period of
layoff, or rationalization or improved machinery or automation of machines or similar other
reasons.
Rightsizing:
Rightsizing is the process of a corporation reorganizing or restructuring their business by
cost-cutting, reduction of workforce, or reorganizing upper-level management.
The term rightsizing is often used by companies instead of downsizing because. it sounds
less drastic
EMPLOYEES SEPARATION
PROS:
 Reduced labor costs

 Replacements of poor performances

 Increase innovation

 The opportunity for greater diversity

CONS:
 High cost for compensation.

 Loss of information and know how.

 May affect the moral of the other employees.

 Lose of re-hiring process.

EMPLOYEES RETENTION
DEFINITION :

 Employee retention, a set of actions designed to keep good employees once they have
been hired.
 It is a strategy begin with the hiring process that can affect the hiring criteria and

strategy.
 Employee retention refers to policies and practices companies use to prevent valuable

employees from leaving their jobs.

 The retention in some cases depend on the functional value of the employee, to which the
level is this employee important to the organization.
EMPLOYEES RETENTION
HOW:

 Hiring the right people.

 Employee empowerment.
 Employee being the most valuable asset.
 Believe In Your Employees.
 Provide them information and knowledge.
 Feedback on their performance.
 Recognize and appreciate.
 Keep their morale high
EMPLOYEES RETENTION
HOW: HR Practice Example of Effective Tactics
Staffing  Use realistic job previews
 Provide growth and promotion opportunities
 Select employees who fit with the organization

Training and development  Offer educational programs such as MBA

 provide sabbitical and other learning opportunity

Career planning  Specify clear career paths

Compensation  Maintain competitive pay
 Develop fair pay practices
 pay for learning new skills

Labor relation  Establish quick and fair grievance procedures

 Facilitate conflict resolution among employees
EMPLOYEES RETENTION
WHO:
EMPLOYEES RETENTION
PROS:
 Avoids and or reduce hiring cost

 Retaining employees reduces training costs.

 It builds a team of skilled and experienced employees.

 Retaining experienced staff creates a positive impact on customer services.

 Retention activity fosters loyalty towards the organization amongst employees.

 Encourages friendly environment and fosters bonding amongst employees.

 It facilitates smooth workflow of internal processes.

 It enhance the quality of work produced.

 It increase the quantity of work delivered.

 It enhances revenues for the organizations.

EMPLOYEES RETENTION
CONS:
 It promotes groups amongst old employees which creates an insecure environment for
new employees.
 Improper mixing of staff affects productivity and ensures poor quality of work.

 Excessive liberty to staff just to maintain work flow affects quantity and quality both.

 Retaining non-delivering staff kills the productivity and creativity of knowledgeable

employees.
 Retaining spoon-fed and complaining employees add the cost of the organization.

 Affluent employees who don’t require a job rarely add value to the employee
THANK YOU