Chapter 13 Staffing System Administration McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

New Employee Orientation and Socialization Content People Performance proficiency Organization goals and values Politics Language History Delivery

Discussion questions What are examples of orientation experiences you have had as a new hire that have been particularly effective (or ineffective)?

Retention Management McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

Nature of the Problem Employee retention can contribute to organizational effectiveness Turnover is not only costly but may be beneficial Focus of retention strategies Number of employees retained and Who is retained Turnover is inevitable Approach to retention management Gather and analyze employees’ reasons for leaving

Types of Employee Turnover - Voluntary -- Employee Initiated

Types of Employee Turnover - Involuntary -- Organization Initiated

Causes of Voluntary Turnover

Causes of Turnover: Discharge and Downsizing Discharge turnover Mismatch between job requirements and KSAOs Employee fails to follow rules and procedures Unacceptable job performance Downsizing turnover Mismatch in staffing levels which leads to an overstaffing situation Factors related to overstaffing Lack of forecasting and planning Inaccuracies in forecasting and planning Unanticipated changes in labor demand and/or supply

Measurement of Turnover: Formula Turnover rate Number of employees leaving  average number of employees x 100 Data and decisions Identify time period of interest Determine type of employees that count Determine method to calculate average number of employees over the time period

Measurement of Turnover: Breakouts and Benchmarks Analysis of turnover data aided by deciding on categories of data Type of turnover Type of employee Job category Geographic location Benchmarks Internal - Trend analysis External - Compare internal data with external data

Measurement of Turnover: Reasons for Leaving Important to ascertain, record, and track reasons why employees leave Tools Exit interviews Formal, planned interviews with departing employees Postexit surveys Surveys sent to employees soon after their last day Employee satisfaction surveys Surveys of current employees to discover sources of dissatisfaction which may become reasons for leaving Results can provide information to pre-empt turnover Require substantial resources

Guidelines: Conducting Exit Interviews Need to decide before interviews – who will results be communicated to Interviewer should be a neutral person who has been trained in how to conduct exit interviews Structured interview format should contain questions about unavoidable and avoidable reasons for leaving Interviewer should prepare by reviewing interview format and interviewee’s personnel file Interview should be conducted in private, before employee’s last day

Measurement of Turnover: Costs and Benefits Costs and benefits can be estimated for each of the three turnover types Types of costs Financial Nonfinancial Some costs and benefits can be estimated financially Nonfinancial costs and benefits may outweigh financial ones in importance and impact

Major Turnover Costs and Benefits Costs of turnover Separation costs Staff time and loss of productivity Replacement costs Recruiting and selecting new employee Training costs Teaching new employees the job Benefits of turnover Potentially better new employees Short term labor cost savings Opportunities to restructure work units

Most and Least Effective Retention Initiatives

Decision Process for Retention Initiatives Do We Think Turnover Is a Problem? How Might We Attack the Problem? What Do We Need to Decide? Should We Proceed? How Should We Evaluate the Initiatives?

Guidelines for Increasing Job Satisfaction and Retention Extrinsic rewards Rewards must be meaningful and unique Rewards must match individual preferences Link rewards to retention behaviors Link rewards to performance Intrinsic rewards Assign employees to jobs that meet their needs Provide clear communication Design fair reward allocation systems Ensure supervisors provide a positive environment Provide programs to enhance work-life balance

Alternatives Approaches to make internal alternatives more desirable than outside alternatives Internal staffing Encourage employees to seek internal job opportunities Provide attractive internal options outside of traditional internal staffing system Responding to external job offers entails developing appropriate policies Decide whether to provide counteroffers or not Determine types of employees to provide counteroffers Decide who will develop counteroffer and nature of approval process