Managing Employee Separations, Downsizing, and Outplacement

1
Chapter 6

• Managing Employee Separations, Downsizing, and
  Outplacement

2
In-the-News

• Click here to Evaluate 1st In-the-News Assignment
• Click here to Evaluate 2nd In-the-News Assignment

3
Employee Separation

• The termination of an employees membership in an
  organization.

4
Turnover Rate

• The rate of employee separations in an
  organization.

5
Employee Separation Costs

• Recruitment
• Selection
• Training
• Separation
• Exit interview
• Outplacement assistance
• Estimated costs of replacing IT at Fortune 500
  Co. 100,000

6
Antecedents of Turnover

• Self-Worth
• Job design
• Outside stakeholders (family)
• Embeddedness
• Where do you think compensation falls on the
  list?
• What else?

7
Strategies to Reduce Turnover

• What do you think?

8
In-the-News

• Click here to Evaluate 3rd In-the-News Assignment
• Click here to Evaluate 4th In-the-News Assignment

9
Employee Separation Benefits

• Reduced Labor Costs
• Replacement of Poor Performers
• Increased Innovation
• Opportunity for Greater Diversity

10
Involuntary Separations

• A separation that occurs when an employer decides
  to terminate its relationship with an employee
  due to economic necessity or a poor fit between
  the employee and the organization.
• Discharges
• Layoffs
• Downsizing or Rightsizing

11
Voluntary Separations

• A separation that occurs when an employee
  decides, for personal or professional reasons, to
  end the relationship with the employer.
• Quits
• Retirements

12
Retirement at 65 is ridiculous. When I was 65 I
still had pimples.

• George Burns

13
Managing Early Retirements

• Early retirement packages
• Avoiding problems

14
Managing Layoffs

• Considering Alternatives
• Implementing the layoff
• Notifying Employees
• Developing Layoff Criteria
• Communicating with Laid-Off Employees
• Coordinating Media Relations
• Maintaining Security
• Reassuring Survivors

15
Quiz 5

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