Employee Separations

1
Employee Separations
2
Recruitment Costs

• Advertising
• Campus visits
• Recruiter time
• Search firm fees

3
Selection Costs

• Interviewing
• Testing
• Reference Checks
• Relocation

4
Training Costs

• Orientation
• Direct training costs
• Trainers time
• Lost productivity during Training

5
Separation Costs

• Separation pay
• Benefits
• Employment Insurance Costs
• Exit Interview
• Outplacement
• Vacant Position

6
Why sever an employee?

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

7
Downsizing

• When a company reduces its scale and scope of
  business to improve financial performance

8
Rightsizing

• When a company reorganizes its employees to
  improve efficiency.
• ie. too many layers which dont add value.

9
What else can you do if you dont want to layoff
people?
10
Change your Employment Policies...

• Attrition
• Hiring freeze
• cut part-timers, co-op, etc.
• bring subcontracting back inhouse
• voluntary time off
• leaves of absence
• reduce work hours

11
Change your Job Design

• Transfers
• Relocations
• Bumping
• Reduced work hours
• Job sharing
• Demotions

12
Change Pay Benefit Policies

• Pay freeze
• Cut overtime
• Use vacation and leave days
• Pay cuts
• Profit Sharing or variable pay

13
Change Employee Fit

• Retraining and redeployment

14
How do you handle a layoff?

• Notify employees
• develop layoff criteria
• communicate to laid off employees
• co-ordinate media relations
• maintain security
• reassure survivors

15
If layoffs are inevitable, what criteria should
you use?

• Seniority
• Performance

16
What happens to the survivors?
17
Why provide Outplacement?

• Keep up morale of separated employees and
  survivors
• minimize litigation
• assist employees in finding comparable jobs