Week 8 HRM634 Discussion

Chapter 12 Managing

Workforce Flow

Time to Productivity

· Many organizations invest more money in hiring

· new employees than in helping them acclimate

· and become productive.

· Most new hires want to get off to a good start, but

· need help doing so.

· It takes mid-level managers an average of six

· months to get up to speed in a new job.

· Even in restaurants and hotels it can take about 90

· days for a new employee to attain the productivity

· level of an existing employee.

· On average, the time for new external hires to

· achieve full productivity is eight weeks for clerical

· jobs, 20 weeks for professionals, and more than

· 26 weeks for executives.

Orientation and Socialization

· Onboarding (or orientation): the process of

· completing new hires’ employment-related

· paperwork, and familiarizing them with their jobs,

· coworkers, work spaces, work tools, and the

· company’s policies and benefits

· Socialization: a long-term process of planned and

· unplanned, formal and informal activities and

· experiences through which an individual acquires

· the attitudes, behaviors, and knowledge needed to

· successfully participate as an organizational

· member

· The primary goal of socialization is to get new

· employees up to speed on their jobs and

· familiarize them with the organization’s culture,

· or the norms, values, behavior patterns, rituals,

· language, and traditions that provide a

· framework that helps employees interpret and

· understand everyday experiences

Socialization

· Can speed up the time it takes new hires to reach

· the point at which they start generating a return

· on the company’s investment in them.

· Can improve employee retention and employee

· engagement, lessen the impact of reality shock,

· and facilitate new hire adjustment and integration.

· People who are well socialized in their

· organizational roles tend to have higher incomes,

· be more satisfied, more involved with their

· careers and more adaptable, and have a better

· sense of personal identity than those who are less

· socialized.

· Socialization prepares employees to perform their

· jobs effectively, fit into the organization, and

· establish productive work relationships.

Socialization Choices

· What to include: What people, politics, culture,

· language, job requirements, and work processes

· should be discussed? What elements of the

· company’s history, business goals, and key

· strategic objectives should be included?

· Whom to include: Which people should be

· involved in the socialization program—the hiring

· manager, coworkers essential to the new hire’s job

· success, or even the new hire’s family?

· How to use technology: Should the program be

· Web-based, or in-person?

Effective Socialization

· Actively involve new employees

· Encourage them to ask questions

· Clarify new roles and their connection to

· business strategy

· Manager must take the time to get the employee

· up to speed

· Pairing coworkers with new hires for days or

· weeks can facilitate their transition

· Assess transition progress using metrics including

· engagement, 30-, 60-, and 90-day retention rates,

· and supervisor satisfaction

Global Mobility

· Managing employees’ global and domestic

· assignments and national and international

· movements, helping employees manage tax,

· immigration, and personal issues and preparing

· and moving employees to jobs around the world

· There should be a formal identification process

· based on employees’ fit with the role and career

· development needs, not be volunteer based

· Repatriation should also be managed proactively

Managing the Flow of the Workforce

· Having the right people in the right jobs to

· execute business strategy requires effectively

· managing turnover and retention, succession

· management, redeployment, and separations.

· Optimal turnover: not the lowest turnover

· possible, but the level that produces the highest

· long-term levels of productivity and business

· improvement

The Cost of Turnover

· “Measuring the Cost of Staff

· Turnover” (3:18)

Why Top Performers Leave

Identifying Turnover Causes

· Exit interviews: asking departing employees why

· they are leaving to acquire information that can be

· used to improve conditions for current employees

· Employee satisfaction surveys can identify

· problems that can be addressed to prevent

· additional turnover

Maintaining Relationships With Ex-Employees

· Ex-employees can continue to affect a previous

· employer as potential clients, future business

· partners, employee referrers, brand ambassadors,

· and possible high-quality rehires

· Make ex-employees feel appreciated as they leave

· Provide a social network and access to useful

· information

Retention

Retention Strategies

· “Employee Retention Strategies” (7:35)

Retention During Mergers and Acquisitions

· Create financial agreements with key talent that

· serve as golden handcuffs and create mobility

· barriers.

· Financial incentive packages such as retention

· bonuses or stock options that mature over time

· can retain essential employees, and increase their

· commitment to making the merger successful.

· Companies can also increase the value of

· severance packages offered to workers who stay

· until a merger or acquisition is completed to keep

· important talent from leaving prematurely.

· These types of agreements are typically

· solidified in a written contract that specifies the

· financial incentives that the employee will

· receive if they stay with the company for a

· specified time.

Managing Succession

· Succession management should integrate talent

· management with the organization’s strategic

· plan.

· Succession plans need to support the

· organization’s long-term direction, growth, and

· planned change, and should enable an

· organization to have the right people in the right

· place at the right time to execute the business

· strategy.

· Career planning and succession management

· are often integrated to ensure that employees

· are motivated to accept the higher-level jobs.

· Mobility policies: specify the rules by which

· people move between jobs within an organization

· and clearly document the rules for opening

· notification, eligibility qualification, compensation

· and advancement, and benefit changes related to

· advancement.

· Mobility policies should be well developed,

· clearly communicated, and perceived as fair by

· employees.

Workforce Redeployment

· Workforce redeployment: the movement of

· employees to other parts of the company or to

· other jobs the company needs filled to match its

· workforce with its talent needs.

· Workforce redeployment software and services

· help organizations match their talent to specific

· business needs in the most profitable way.

· Matching employees’ expertise and knowledge

· to customers’ needs and deploying the right

· people is the same way a supply chain deploys

· assets.

· For firms trying to maximize the efficiency of

· their workforce, which is particularly important

· for companies pursuing a low-cost strategy,

· workforce optimization is critical.

Involuntary Employee Separations

· Downsizing: the intentional reduction of

· employees intended to improve the efficiency or

· effectiveness of the firm.

· Can improve the financial standing of a firm by

· reducing and changing the workforce structure

· in a way that improves operational results.

· Downsizing is usually done in response to a

· merger or acquisition, revenue or market share

· loss, technological and industrial change, new

· organizational structures, and inaccurate labor

· demand forecasting.

· Downsizing is a popular intervention for

· organizations looking to improve flexibility,

· reduce bureaucratic structure, increase

· decision-making efficiency, and improve

· communication.

· Private sector employers often downsize to

· reduce costs to maximize shareholder returns,

· and to remain competitive in an increasingly

· global economy.

· Public sector downsizings are driven by budget

· reductions and technology improvements that

· allow fewer workers to do the same amount of

· work.

Effective Downsizing

· Fully planning the downsizing is important to

· reduce negative outcomes including:

· Increased costs from voluntary turnover,

· training, and consultants

· Reduced shareholder value

· Decreased efficiency due to the loss of expertise

· Reduced morale and motivation (waves of

· downsizing are the worst)

· Increased absenteeism and turnover of

· desirable employees due to stress and

· uncertainty

· Lower employee trust in the company

· A damaged reputation as an employer

· When a company’s employees take advantage

· of unemployment insurance, the company’s

· future premiums rise

· Higher cost of attracting top talent after a

· downsizing

· Because downsizing is a traumatic event, no

· matter how well prepared the workforce is for the

· impending change, the process should be carried

· out in the most expedient manner possible.

Survivor Syndrome

· Survivor syndrome refers to the emotional effects

· of the downsizing on surviving employees, during

· and after a downsizing.

· These effects include fear, anger, frustration,

· anxiety, and mistrust, which can threaten the

· organization’s survival.

· Survivors often are preoccupied with whether

· additional layoffs will occur, and feel guilty about

· retaining their jobs while separated coworkers are

· struggling.

· Can lead to a variety of adverse effects including

· higher turnover, lower commitment and loyalty,

· and less flexibility among surviving employees.

· Although some studies suggest that “survivor’s

· guilt” leads to increased effort, other studies

· suggest that job insecurity reduces productivity.

Downsizing Assistance to Displaced Employees

· Help in locating listings of vacant jobs and central

· pools of displaced workers for whom the

· employer attempts to find positions.

· Many large organizations help employees find

· employment elsewhere in the organization

· through central processing points that bring

· together displaced employees and vacant

· positions.

· Employers frequently provide résumé coaching,

· job fairs, and access to office equipment to

· facilitate employee transitions out of the company.

Seven Typical Downsizing Activities

1. A workforce demographics review including

2. retirement and other loss projections and

3. assessments of the age, diversity, and skills of

4. the workforce;

5. Assessment of available options to avoid

6. involuntary separations, such as a hiring freeze,

7. buyouts, early retirement, retraining, and

8. relocations;

9. Detailing full-time employee reductions by year,

10. location, program, occupation, position, and

11. person;

12. Conducting the downsizing or reduction in force;

13. Providing career transition/job placement

14. assistance;

15. Providing assistance for survivors of downsizing;

16. and

17. Ensuring that an adequate retraining program is

18. in place.

Evaluating Downsizing Effectiveness

· Meeting authorized full-time employee headcount

· goals

· Increase in the ratio of supervisors to employees

· Employee loss due to attrition versus incentive

· programs

· Demographics of buyout recipients

· Impact on diversity goals

· Ability to meet budgetary limits

· Productivity changes

· Reduction in total cost of wages and salaries

· Number of grievances, appeals, or lawsuits filed

· Number of voluntary participants in incentive and

· career transition programs

Layoffs

· Layoff: temporary end to employment.

· Employers tend to dislike layoffs compared to

· other downsizing methods, in part because they

· are forced by law (in the case of most public

· sector employees) or by bargaining agreements to

· employ seniority-based criteria in deciding which

· employees to separate during layoffs.

· This does not guarantee that the right

· competencies will remain in the company to

· allow it to execute its business strategy and

· emerge from the downsizing in a more

· competitive position, and often means the

· retention of the most expensive employees.

· Layoffs also increase employee health problems

· and withdrawal behaviors.

· Layoffs often have a negative impact on

· employee diversity, since women and minorities

· tend to be disproportionately affected by

· seniority-based layoff policies.

· During a layoff, career transition assistance is

· usually provided to employees along with job

· placement and training assistance, severance pay,

· and continuation of benefits such as health

· insurance for a period of time.

· Layoffs have a negative impact on a firm’s

· reputation that is significantly stronger for newer

· than for older firms.

Some Layoff Alternatives

· Attrition due to retirement, death, or resignation

· Hiring freeze: not hiring any new employees

· Early retirement incentives: allow retirement with

· full or reduced pension benefits at an earlier age

· than normal

· Buyout incentives: a lump sum payment to

· encourage voluntarily quits

· Leave without pay

· Flexible work arrangements

· Workforce redeployment

· Cross training and retraining

· Reducing work hours and/or pay

· Sharing company ownership with workers in

· exchange for lower pay

· Increasing the use of temporary or contract

· employees who are let go rather than laying off

· core workers

Discharging Employees

· May happen immediately after a policy violation

· or other job misconduct (e.g., a safety violation,

· failure to renew a professional license, etc.), or

· after a long pattern of poor performance

· Rather than separating multiple people from the

· company as happens with downsizing,

· terminations focus on individual employees

· Even with employment at will, a termination

· should be well documented and accurate records

· kept regarding the cause.

· Having terminated (or laid off) employees sign a

· severance agreement that includes a release

· stating that the departing employee gives up

· some or all rights to sue you can reduce the risk of

· future litigation.

· Releases are often used the proper

· documentation to fire someone is lacking but

· the employer wants to end the employment

· relationship and reduce the chance of a lawsuit.

· To be most effective, the release needs to

· involve some sort of consideration, usually

· money beyond any standard severance

· agreement; the employee needs to be given

· appropriate time to consider the offer and even

· change his or her mind after signing it; and the

· employee should be able to negotiate some of

· its contents to show that it was willingly signed.

Common Termination Errors

· Doing it publicly

· Writing a positive letter of reference after a

· termination for cause (this opens the company to

· charges of negligent referral)

· Trying to document a termination for a just cause

· case that doesn’t exist

· Firing an employee after a merit raise or favorable

· performance review

· Stating that the person conducting the

· termination meeting disagrees with the

· termination

· Juries have also looked unfavorably at

· terminations that were done at end of a work day

· or work week, after the employee returns from a

· business trip, or at beginning of holiday

10 Sins of Employee Termination

· “10 Sins of Employee

· Termination” (13:06)

Termination Tips

· Remain impartial, calm, and in control of the

· conversation; be respectful at all times

· Listen to employee requests for severance terms,

· but reserve final decisions for a later time; being

· heard and considered will increase the employee’s

· perceptions of fairness

· Be clear and don’t send mixed messages

· The shock of being fired can prevent the employee

· from listening to all of what you are saying; repeat

· yourself if you feel your message is not being

· heard

· Don’t give career advice to someone you’ve just

· fired

· If the person is being terminated, don’t say “laid

· off” because it implies the possibility of return

· Hold the meeting in a private, neutral location

· Deliver information without engaging in an

· argument; use prepared notes if necessary. Do not

· ramble, make promises, or say a mistake is being

· made

· Discuss the effective termination date, any

· severance package, etc.; have the details of the

· termination and any severance package in writing

· so the employee can take them with him or her

· along with the details of the termination

· Be aware of legal compliance issues

· Write up an accurate record of the termination

· interview and provide a copy to the employee

· Cover matters such as returning identification

· cards, keys, and how to receive final paycheck

· Involve company security, if needed

· After discharge, notify all relevant parties of the

· termination

Terminating an Employee

· “Scene from ‘Up in the Air’” (2:03)

· “How to Terminate an

· Employee” (2:25)

· “Terminating a Problem

· Employee” (1:34)

· “How to Fire Someone and Not Feel

· Guilty” (3:41)

Ethics

· Common ethical issues at this stage:

· Whether to use divestiture socialization practices

· Deciding to hire employees from competitors,

· suppliers, or customers

· Communication and respect during separation

· meetings

· Having an ethical downsizing plan ready in case it

· is needed

Analytics

· Good metrics to track:

· Time to new hire performance

· Productivity

· New hire voluntary and involuntary turnover

· New hire engagement

· New hires’ satisfaction with the onboarding and

· socialization programs

· Supervisor satisfaction with the onboarding and

· socialization programs

Technology

· Can help automate the delivery of some

· onboarding and socialization content, exit

· interviews, and metric tracking

· Chatbots and virtual assistants may help new

· employees and help customize the onboarding

· experience

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