Chapter 15 dessler 12-ce_ppt_ch15

Chapter 15: Managing Employee
Separations: Foundations of Employee
Engagement, Communication, and Turnover
Management

Managing Employee Separations | 15-1

Copyright © 2014 Pearson Canada Inc. All rights reserved.

Dessler, Chhinzer, Cole
Human Resources
Management in Canada
Canadian Twelfth Edition

Learning Outcomes
• DEFINE voluntary and involuntary turnover and
explain the impact of each.

• ANALYZE important HR considerations in ensuring
fairness in dismissals, layoffs, and terminations.
• DISCUSS the three foundations of a fair and just
disciplinary process.


• DISCUSS the drivers and outcomes of each turnover
method.

Learning Outcomes

• EXPLAIN the six steps in the termination
interview.

• EXPLAIN various techniques for ensuring
effective employee communication in
organizations to help manage turnover.



• DEFINE wrongful dismissal and constructive
dismissal.

Managing Turnover

• decision made by
employee

Involuntary
turnover:
• decision made by
employer

• quit

• Dismissal

• retirement

• layoff

• resignation



Voluntary
turnover:

reserved.
Copyright © 2014 Pearson Canada Inc. All rights reserved

Reasons for Turnover


• separation costs
– separation interview, administration,
separation or severance pay
• vacancy costs
– temporary workers, overtime, loss of
sales due to vacancy
• replacement costs
– recruiting/hiring replacement
• training costs
– for replacement


The Cost of Turnover

reserved.

Direct Cost of Turnover


• unanticipated challenges of replacing
employee
• reasons for voluntary turnover:
– suboptimal hiring practices
– difficult managerial style
– lack of recognition
– lack of competitive compensation
systems
– toxic workplace environments


Voluntary Turnover

• reasons for involuntary turnover:
– unacceptable job performance
– economic/financial pressures
– new strategic direction
• should be fair, after all reasonable steps
taken to rehabilitate employment
relationship



Involuntary Turnover

Foundations:
1. rules and regulations
– clear expectations of acceptable
behaviour
2. progressive discipline
– warning, suspension, termination
3. appeals process
– allow employee to present case


Fair and Just Disciplinary Process

• dismissal
– involuntary termination of employment
• dismissal for just cause
– termination based on poor behaviour
– no severance or additional notice period
required
• insubordination
– disregard or disobedience of authority
– often provides grounds for just cause


Dismissal for Just Cause

continued


reserved.

Guidelines for Insubordination

continued


reserved.


reserved.



• temporary withdrawal of employment to
workers
• conditions:
1. no work available
2. situation expected to be temporary
3. management intention to recall
employees
• alternatives:
– pay reduction, use of vacation time,
contingent workers, work sharing


Layoff

• distributive justice
– fairness of a decision outcome
• procedural justice
– fairness of the process used to make a
decision
• interactional justice
– fairness in interpersonal interactions by
treating others with dignity and respect



Fairness in Employee Separations

reserved.

The Vendetta Effect


• employment contract
– formal agreement between employer and
employee
– employee cannot be prematurely dismissed
without just cause if a term is specified
• implied contract
– indefinite period of time, may be
terminated by either party with reasonable
notice
– more common


Employee-Employer Relationship

• required when terminating an employee if
just cause does not exist
• considerations:
– rule of thumb is 3-4 weeks per year service
– failure to provide notice may result in
wrongful dismissal
– large group terminations require more
notice
– avoid “bad faith conduct”
– wrongful acts may result in punitive
damages


Providing Reasonable Notice

• employer makes unilateral changes in the
employment contract that are
unacceptable to the employee
• examples:
– demotion
– reduction in pay and benefits
– forced resignation
• employee is eligible for reasonable notice



Constructive Dismissal

1. Use termination clause and probationary
period in employment contracts
2. Document all disciplinary action
3. Do not allege just cause for dismissal unless it
can be proven
4. Time the termination so that it does not
conflict with special occasions
5. Clearly state a settlement offer in writing
6. Schedule the termination interview in a private
location at a discrete time of day
7. Include two managers in the termination
meeting


Avoiding Wrongful Dismissal Suits

1.
2.
3.
4.
5.

Plan the interview
Get to the point
Describe the situation briefly
Listen
Review all elements of the severance
package
6. Identify the next step



The Termination Interview

• emotional and intellectual involvement of
employees in their work
• creates vested interest in company’s
success, willingness, and motivation to
exceed job performance requirements
• effective communication is important to
employee engagement



Employee Engagement

reserved.

Drivers of Engagement


• offer rewards for employee suggestions on
improvement
• benefits:
– monitor employees feelings/concerns
– provide alternate channel of
communication
– minor employee issues can be addressed
early



Suggestion Programs

• should be conducted regularly and
communicated to employees
• address areas such as job satisfaction, coworker cohesion, quality focus, employee
commitment
• blogging is becoming more common;
recommend a blogging policy to
encourage but guide employees



Employee Opinion Surveys

• share data on performance and operations
prospects
• traditionally:
- newsletters
- verbal presentations
• more recently:
– video, email, intrarnets
– blogs from senior management


Communication from Management

Chapter 15 dessler 12-ce_ppt_ch15

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