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Week 9: Staffing System and Retention Management
Chapter 13 & 14: Staffing System Management; Staffing Retention Management
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Staffing Organizations Model
Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Recruitment: External, internal Planning Selection: Measurement, external, internal Job analysis Employment: Decision making, final match Staffing System and Retention Management 13-2
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Chapter Outline Administration of Staffing Systems
Organizational Arrangements Jobs in Staffing Policies and Procedures Human Resource Information Systems Outsourcing Evaluation of Staffing Systems Staffing Process Staffing Process Results Calculating Staffing Metrics Customer Satisfaction Legal Issues Record Keeping and Privacy EEO Report Legal Audits Training for Managers and Employees Dispute Resolution 13-3
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Learning Objectives for This Chapter
Recognize the importance of effective policies and procedures for staffing Understand the importance of concrete, fair policies and procedures in selection Evaluate the advantages and disadvantages of outsourcing staffing processes Understand how to evaluate the various results of staffing processes Develop metrics for the measurement of staffing systems Recognize the legal issues involving record keeping and applicant/employee privacy Plan for effective dispute resolution 13-4
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Administration of Staffing Systems
Organizational arrangements Jobs in staffing Policies and procedures Human Resource Information Systems Outsourcing 13-5
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Organizational Arrangements
Refers to how the organization structures itself to conduct human resources and staffing activities Research results Employment and recruitment are increasingly important components of HR systems Staffing receives a greater percentage of total HR budget than other functions -- 20% of total budget Exh. 13.1: Example of HR Department and Employment (Staffing) Function 13-6
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Jobs in Staffing Entry occurs as specialist in recruiting and interviewing Mobility may involve both traditional and nontraditional career tracks Jobs are becoming more customer focused and facilitative Increasing numbers of jobs are found in staffing firms New type of job -- Chief Talent Officer or VP for Talent Acquisition Exhs and 13.3: Staffing Jobs 13-7
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Policies and Procedures
Indicate desirable courses of action and steps to implement action Policy Guiding principle or objective sought through appropriate actions Procedure Prescribed steps of acting in similar situations Exh. 13.4: Staffing Topics in CompuServe’s HR Policy Manual 13-8
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Technology Staffing activities generate considerable information
Small organizations still use paper-based forms, but increasingly have access to HRIS programs and web-based applications Increased use of HRIS means Increased accountability for HR activities Ability to streamline processes 13-9
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Ex. 13.5 Human Resources Information Systems for Staffing Tasks
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Ex. 13.5 Human Resources Information Systems for Staffing Tasks
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Outsourcing Refers to contracting out work to a vendor or third-party administrator Outsourcing of HR functions is increasing Types of staffing activities outsourced Use of temporary employees, executive search, drug testing, skill testing, background checks, job fairs, employee relocation, assessment centers, and affirmative action planning Strategic and operating reasons to outsource Expertise, flexibility, time savings, service quality, reduction of legal liability, and cost reduction 13-12
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Ex. 13.6 Comparing Outsourced vs. In-House Staffing
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Discussion Questions to Consider
What are the advantages of having a centralized staffing function, as opposed to letting each manager be totally responsible for all staffing activities in his or her unit? What are examples of staffing tasks and activities that cannot or should not be simply delegated to a staffing information system for their conduct? What would be the advantages and disadvantages of outsourcing the entire staffing system to a vendor? 13-15
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Evaluation of Staffing Systems
Staffing process Staffing process results Staffing costs Customer satisfaction 13-16
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Staffing Process Concept Reasons to use a well-planned staffing system
Establishes and governs the flow of employees into, within, and out of the organization Reasons to use a well-planned staffing system Ensures same KSAO information is gathered from all applicants Ensures all applicants receive same information Enhance applicants’ perceptions of procedural fairness of staffing system and decisions Less likely to generate legal challenges by applicants Provides a clear picture of where deviations have occurred 13-17
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Staffing Process Results
Quantitative indicators indicate effectiveness and efficiency of staffing system Exh. 13.7: Staffing Process Results Evaluation Flowchart 13-18
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Staffing Metrics Staffing metrics are useful barometers to gauge pulse of staffing flow Provide objective, “bottom line” results Useful for comparative purposes Split sample techniques Longitudinal analysis Compare to benchmarks 13-19
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Ex. 13.8 Common Staffing Metrics
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Calculating Staffing Metrics: Examples
Number of positions filled count of the number of individuals who accepted positions during the fiscal year. Time-to-fill openings the number of days it takes for a job requisition to result in a job acceptance by a candidate. Hiring cost estimates sum of advertising, agency fees, employee referrals, travel costs for applicants and staff, relocation costs, and pay and benefits for recruiters Staffing cost or efficiency ratio total staffing costs/total compensation recruited 13-21
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Customer Satisfaction
Managers Questions focus on elements like communication, timeliness, candidate quality, test quality, and service focus Ex Examples of Survey Items for Assessing Manager’s Satisfaction With Staffing Services Job Applicants Questions focus on communication, perceived fairness of the system, and opinion of the organization as a whole Ex Sample Job Applicant’s Satisfaction Survey Questionnaire 13-22
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Discussion Question to Consider
In developing a report on the effectiveness of the staffing process being conducted for entry-level jobs, what factors would you address and why? 13-23
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Legal Issues Record-keeping, privacy, and reports EEO Report
Legal Audits Training Dispute resolution 13-24
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Legal Issues Record keeping, privacy, and reports Audits
Creation and maintenance of records Four purposes of records Exh : Federal Record-Keeping Requirements Privacy concerns Preparation of reports Exh : Employer Information Report EEO-1 Form Audits 13-25
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Dispute Resolution Negotiation Fact finding Peer review Mediation
Discuss complaint with goal of resolving it Fact finding Neutral person investigates complaint Peer review Employees and managers work together in a panel Mediation Neutral person helps to find a solution Arbitration Neutral person makes a decision binding on the parties 13-26
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Discussion Question to Consider
How would you try to get individual managers to be more aware of the legal requirements of staffing systems and to take steps to ensure that they themselves engage in legal staffing actions? 13-27
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Ethical Issues Issue 1 Issue 2
It has been suggested that the use of staffing technology and software is wrong because it dehumanizes the staffing experience, making it nothing but a mechanical process that treats applicants like digital widgets. Evaluate this assertion. Issue 2 Since there are no standard ways of creating staffing process results and cost metrics, is there a need for some sort of oversight of how these data are calculated, reported, and used within an organization? Explain. 13-28
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Chapter 14: Retention Management
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc., All Rights Reserved.
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Staffing Organizations Model
Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Recruitment: External, internal Planning Selection: Measurement, external, internal Job analysis Employment: Decision making, final match Staffing System and Retention Management 14-30
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Chapter Outline Retention Initiatives: Discharge
Performance Management Progressive Discipline Retention Initiatives: Downsizing Weighing Advantages and Disadvantages Staffing Levels and Quality Alternatives to Downsizing Employees Who Remain Legal Issues Separation Laws and Regulations Performance Appraisal Turnover and Its Causes Nature of Problem Types of Turnover Causes of Turnover Analysis of Turnover Measurement Reasons for Leaving Costs and Benefits Retention Initiatives: Voluntary Turnover Current Practices and Deciding to Act Desirability of Leaving Ease of Leaving Alternatives 14-31
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Learning Objectives for This Chapter
Be able to differentiate among the types and causes of employee turnover Recognize the different reasons employees leave their jobs Evaluate the costs and benefits of turnover Learn about the variety of techniques companies use to limit turnover See how performance management and progressive discipline limit discharge turnover Understand how companies manage downsizing Recognize a variety of legal issues that affect separation policies and practices 14-32
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Turnover and Its Causes
Nature of problem Types of turnover Causes of turnover 14-34
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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 14-35
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Types of Turnover Exhibit 14.1: Types of Employee Turnover Voluntary
Avoidable - Could be prevented Try to prevent for high value employees Do not try to prevent for low value employees Unavoidable - Could not be prevented Involuntary Discharge Downsizing 14-36
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Exhibit 14.1: Types of Employee Turnover - Voluntary -- Employee Initiated
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Exhibit 14.1: Types of Employee Turnover - Involuntary -- Organization Initiated
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Causes of Turnover: Voluntary
Exhibit 14.2: Causes of Voluntary Turnover Behavior of leaving preceded by intention to quit Factors affecting intention to quit Perceived desirability of leaving Often results from a poor person/job or Person/organization match Perceived ease of leaving Represents lack of barriers to leaving and Of being able to likely find a new job Available alternatives Depends on other job options both within and outside organization 14-39
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Exhibit 14.2: Causes of Voluntary Turnover
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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 14-42
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Analysis of Turnover Measurement Reasons for leaving
Costs and benefits 14-43
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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 14-44
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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 Exh. 14.3: Data from job openings and labor turnover survey 14-45
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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 14-46
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Guidelines: Conducting Exit Interviews
Interviewer should be a neutral person who has been trained in how to conduct exit interviews Training issues How to put employee at ease and explain purpose How to follow structured interview format and take notes How to end interview on positive note Structured interview format should contain questions about unavoidable and avoidable reasons for leaving Exh. 14.4: Examples of Exit Interview Questions Interviewer should prepare by reviewing interview format and interviewee’s personnel file Interview should be conducted in private, before employee’s last day Interviewee should be told interview is confidential 14-48
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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 14-49
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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 14-50
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Costs and Benefits for Types of Turnover
Voluntary turnover Exh. 14.5: Voluntary Turnover: Costs and Benefits Exh. 14.6: Example of Financial Cost Estimates for One Voluntary Turnover Discharge Exh. 14.7: Discharge: Costs and Benefits Downsizing Exh. 14.8: Downsizing: Costs and Benefits 14-51
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Ex. 14.9 Most and Least Effective Retention Initiatives
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Exh. 14.11: 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? 14-53
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Guidelines for Increasing Job Satisfaction and Retention
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 Extrinsic rewards Rewards must be meaningful and unique Rewards must match individual preferences Link rewards to retention behaviors Link rewards to performance 14-54
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Ease of Leaving Two points of attack
Provide organization-specific training Should organization invest in training to provide general or organization-specific KSAOs? Combine training strategy with a selection strategy focused on assessing and selecting general KSAOs Increase cost of leaving by providing Above-market pay and benefits Deferred compensation Retention bonuses Desirable location of company’s facilities 14-55
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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 14-56
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Discussion Questions to Consider
For the three primary causes of voluntary turnover (desirability of leaving, ease of leaving, alternatives), might their relative importance depend on the type of employee or type of job? Explain. Which of the costs and benefits of voluntary turnover are most likely to vary according to type of job? Give examples. If a person says to you, “It’s easy to reduce turnover, just pay people more money,” what is your response? 14-57
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Exh. 14.13: Performance Management Process
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Retention Initiatives: Discharge
Ex : Performance Counseling and Disciplinary Process Identify performance problems Assess causes Develop corrective actions Develop and discuss clear consequences for failure to improve Document incident, corrective actions, and consequences for continued problems Termination if problem is not resolved 14-59
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Retention Initiatives: Discharge
Progressive discipline Five requirements of a progressive discipline system Give employees notice of the rules of conduct and misconduct Give employees notice of the consequences of violation of the rules Provide equal treatment for all employees Allow for full investigation of the alleged misconduct and defense by the employee Provide employees the right to appeal a decision 14-60
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Retention Initiatives: Downsizing
Weigh advantages and disadvantages See Exh. 14.8 Staffing levels and quality View retention in two ways Balance a financial quick fix against unlikely return of downsized employees if economic conditions improve Approach reductions in selective or targeted terms, rather than across the board Determine who should be retained, if cuts are made Retain most senior employees Make performance-based decisions Retain “high-value employees” and layoff “low-value employees” 14-61
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Retention Initiatives: Downsizing (continued)
Alternatives to downsizing No layoff or guaranteed employment policy Layoff minimization programs Exh : Layoff Minimization Examples Employees who remain Potential results of ignoring survivors Increased stress levels Critical appraisals of downsizing process Examples of “survivor sickness” Provide programs to meet needs of survivors Enhanced communication programs Morale-boosting events Promotion of EAPs Stress-related training 14-62
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Discussion Questions to consider
Why should an organization seek to retain employees with performance or discipline problems? Why not just fire them? Discuss some potential problems with downsizing as an organization’s first response to a need to cut labor costs. 14-64
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Legal Issues: Separation
Basic tenet of employee separation Fair and consistent treatment of employees Laws and regulations governing separation process Public policy restrictions on employment-at-will Employment discrimination laws and regulations Affirmative action requirements Employment contract principles Labor contract provisions Civil service laws and regulations Negligent supervision and retention Advanced warning about plant closings 14-65
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Legal Issues: Suggestions for Performance Appraisal Systems
Appraisal criteria should be job-related, specific, and communicated in advance Manager/rater should receive training in overall performance appraisal process and how to avoid rating errors Manager should be familiar with employee’s job description and actual performance Agreement should exist among different raters in evaluating an employee’s performance Evaluations should be in writing Employee should be able to review evaluation and make comments before it becomes final Employee should receive timely feedback about the evaluation and an explanation for any outcome decision Provide upward review of employee’s appraisal Provide appeal system for employees dissatisfied with their evaluations 14-66
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Ethical Issues Issue 1 Consider a circumstance where your organization is doing exit interviews and has promised confidentiality to all who respond. Your supervisor has asked you to give the name of each respondent so she can assess the information in conjunction with the person’s supervisor. What obligation to corporate HR employees have to keep information confidential in such circumstances? 14-67
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Ethical Issues Issue 2 There are numerous negative organizational consequences to firing employees, including the discomfort of the supervisor who delivers the termination information, conflict or sabotage from the departing employee, and the potential for a lawsuit. In response, many supervisors provide problem employees unpleasant work tasks, reduced working hours, or otherwise negatively modify their jobs in hopes that the problem employees will simply quit. What are the ethical issues raised by this strategy? 14-68
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