HR

~ 12 M anaging Workforce Flow

Outline

Improving Onboarding at Hilton

Orienting and Socializing New Employees Tbe Phases of Sociali zation Socialization Cho ices What Makes a Sociali zation Program Effective?

Global Mobility Managing the Flow of the Workforce

T ypes of Turnove r The Causes o f Vo luntary T urnover Ana lyzing the Causes of Turnover Developing Retentio n Strategies Mergers and Acquisitions M anagi ng Succession Redeployi ng Talent

Involuntary Employee Separations D ownsizin g Layoffs Alternatives to Layoffs Discharging E mpl oyees Dealing w ith the Risk o f Vio le nce Develop Your Sk ills: Discharging Tips

Improving Onboarding at Hilton

Summary

LEARNING OBJECTIVES After studyi11g this chapter, y ou should be able to:

Discuss ways to make sociali zati on more effecti ve.

Descri be the s ix d ifferent ty pes o f turnover.

Discuss e mpl oyee re te ntion strategies.

Discuss vario us ways o f downs izing a company's workforce.

Describe how to e ffecti vely tem1inate an employee.

329

330 Chap1cr 12 • Managing Workfon."C' Flo"

Improving On boarding at Hilton 1

Wilh o, cr 500 hotC'l.s " orld\\ idc. 1-lllcon depends on 11.s call ccnler rcscrvadons Ind

rcpn:~ ntJII\ CS 10 manage rcscrv1uions and customer conccm s. Hilton rc1t that it W:"'<>rner etrt, ~mplo) cr. offeri ng cmployres travel benefits. a strong brand. and the opportunity ror some

1 ~ tJ , C'$ 10 -... on. from home. Bui H,hon olso n.•aliLcd tha1 the 11nnual turnover rate or SS ~

thoc c mplo) C'CS -... as c, pcnsivc lllld resulteJ in Josi produc11,•ity. pcrcaq llllcllta . Aficr m, c.stiga11ng its rumo,cr pauc ms m greater dc1a1l. 1-Ulton lcamcd that half o r U

vauoru and rustomcr care reprcscnuu.h e hires ien before 90 days of cmploymcnL Tlus I

or lb ltltr, sug~tcd that its scl«tion and onboarding process cou ld be improved earl) ~ . lm~ ~ that the co mpany asks for your o pm1on as 10 how it can dccrcasc the earl us r'CSCr"i lllons and customer care t't'presentath cs and impro,·e thrir retention and pcri )' lunao.eror reading this chapter. you ~hould ha,c some good ideas to share with the finn. 0nN.nce After

Beca':'5" st1111egic s1affing manages the now of people inlo, through, and ou1 of the

uon. 11 docs noi end when job o ffe rs an, acccp1cd. As we have explained, once 1 °'llai4- agn,cd 10 be hired. a company's human resource departmen1 lurns its anenlion lo enh~ bas employ~e·s co mmi1mcn1 10 the organizalion. Even simple things like fo llowing u~-;.'i"lbt hires pnor 10 thcU" start da1cs can be useful. One sludy found chat when linns 1eleph<>ncd .._

n~w hires 10 enco urasc, them to mamtain their cornmi1mcnt to their new Jobs, fc\\;cr of:-

fo1lcd 10 report 10 work.· Of co= . once employees report 10 work. they need 10 "learn the ropes" of the1r ne

Co ming Glass Works fo und tha1 employees who aucnded a struclurcd orieniation prog....:Jok 69 percen1 more likely 10 rcmarn w11h the company after three years than lhose who did ,_'fllfle

through , uch a program. Texas lnstrumcnlS found 1ha1 employees whose orientatlon PfOtlU 10

carefully ancndcd 10 reached full productivi1y 1wo months earlier than did olhcr ne,., baa,: : expert says, "With a thorough oricn1a1ion and ·onboarding ' process, the probabili1y oflldilniag

the goals o f 1hc business and the employee arc grcally increased. Withoot 1~ the Probabililiea 1 di, appoinuncn t. employee turnover. rework, and dissa1isfied cl ients all grow unnecessanly _.

0

In addition 10 smoo1hing 1he 1ransilion of new hires inlo the company and gclb.al lhcm productive as quickly as possible, 11 is also necessary 10 manage the movement of people Ullo

differc nl projects and jobs 1hroughou1 the company, and possibly around the world. SeJ)3lalJOns,

including termina1ions, layoffs, and downsizings, arc another importanl part of s1n11egie sllll'mg

and ialen1 managemenL In IJ1is chapter, you will learn how 10 inlegrate new hires 1n10 their"ul;

groups and the company. manage the no w of 1alen1 1hro ughou1 the organizauon, and manage

employee separ:uions. Aflcr reading chis chap1er, you sho uld ha ve a good unders1and1ng of how

10 manage the now of talent in 10. 1hrough. and ou1 of a firm.

ORIENTING AND SOCIALIZING NEW EMPLOYEES

Many organi za1ions inves1 more money in hiring new employees than in helping them acc:hnwe

and become productive. Mose new hires wan e 10 get off 10 a good sc.an bul need help dorng ,o.

Even in resUlurants and ho1els, ii can lake aboul 90 days for a new employee 10 atl4Jn the pn,-

ducli vi1y level o f an existing employcc. 5 On average, the time for new ex1cmal lw'cs 101<Juc,e

full productivi1y is eight weeks for clerical jobs, 20 weeks fo r professionals, and more llwl 26

weeks for exec uti ves.6

Employers have only one opportunity 10 make a good firsl impression on new employees

The bes1 sourcing, recruiting, and s1affing prac1ices are useless if the people who :in, hired CU·

no1 be re1ained. To give new hires a big welcome during the ir firsl day of orientation 11 bllel.

they walk a path lined with ln1cl S1udios· pho1ographers and vidcographcrs, mlroduce chem-

se lves onswgc, and receive their welcome packages along with a round of applause from lheu

new colleag ues. 7 Because mos1 cu mover occurs during the firsl few months on the JOb, linns can

increase the rclention races of their new employees by he lping them adjust 10 their companies

and jobs.8 Beca use organizations ha1e liulc opportun ity 10 recover the re1um on thc,r in,csUnenl

,n new employees who qu it. newcomer 1urno1cr is pro blemauc and expensive. Many man•8~ • ,n face. say that high 1umovcr races arc 1he biggesl obs1acle 10 1heir co mpanies' growth effoll'

Chapter 12 • Managing Workforce Flow 331

oric nt•1Jo n, or 011boar<!i11g, is 1h~ r ro~ess o~eompleung new hires' employmen1-rcla1ed

. \, l,r~. pro,'IJmg 1hcm \~tlh keys, 1dcn11rica11on cards, workspaces, and technology s~ch

r,1r,: 11

Ull•r:,, company e-mail addresses, a~d lclc~honc numbers. It also includes introd~c.mg

;-\ 1 r hires 10 their coworkers (who will be important to their success ), and fom1har-

th~ rit:\\ , w,1h 1hcir j obs and wi th the company's work policies ond benefits. Orienting c 111' 1

11 d h . I · . ·I , •. ri~ 1,>cc s can spec up I c lime I takes them to reach 1he brcake vcn poi nt at wh1c 1

'"'.,., ,•nlP ~osung 1hc firm money and start gcncmtfog a return on the company's investment ,~.:~ ~wr ,, ih<~,, coffeehouse chai n S1arbucks thoroughly oricn1s its new hires. A '"Firsl Impression

•i:" helps new employees undcrsland their job roles and ensures that their pcrfonnancc

C••: 1 J1100, arc clear. _The S

tarbucks Support Cen1cr then offers both ~If-guided and supported

,,r-... tJII0n actl\' tttcs. 1nclud~ng a tw0+day program m which new hires learn aboul the co_m· .,~, ., 1111~~ion s1atcmcn1. h•~!ory: and future goals as well as Lhc finn 's products and ski

lls

I'"· ,J , ihc "an of espresso, which employees need 10 know 10 do their jobs weli. 10 Al QVC,

ri:IJ!, _.!'ni! coachc~ help new hires make decisions and form relationships consistent with the ,,nl°"(U rv l ~ I I

"' ·) , alucs . • ,,mp.i

O ; 1 cnwtion 1s not the same 3S traini ng, however. Training provides employees with the

n,ii,kd~c and ~k,11s they need to do thei r j~bs, ~here.as orien tation is about a~ employee ~ tting L organizational member. To make onentallons more fun, some companies send their new 1 " " "0 ,cJ,cngcr hunls to gather infonnalion abo

ut the company, including ics financial facts h...:>t1

d rrJuct infonnallon. The new hires either gather the infonnation from other employees or

Jn t~I.' company' s intranct 10 find the information. This can increase the number of employees 11 ~ n,•w hire) mcc1. and can familiarize them with how to find various types of infonnotion on

~; , nmp>n) ·s in1ranc1 as well. Tcchnol~gy can also faci li1n1e the orie ntation of a fi'."''s ne~

h re~ One ,oftY.are product enables candidates to review and sign documents clcctromcaJly via

',ompJny'" ~ccurc \Vcb site. The new hires con occcss their employme nt applicatio ns, hir•

:,, ,En:cmcnls. personal hislory stalements, and offer lcners and then sign and re1um them

,. ;th,n 1111 nu1cs nuhef 2 than days. This can help the new hires save time and reduce a company's

~m,n1,1rat1\c costs. The most cffcc1ive orientation programs focus on more 1han jus1 logistical de1ails and

1 ,1ung , new hire up lo speed. Allhough those things can

help new hires become productive

mm:- qutckl~. they do not create an emotional connection to the company or influence retention.

5,...,rh• c,1 Atrlincs' Director of Onboarding states, "If you want them 10 slay, if you wane them

10 t,:em11c engaged, you need 10 make sure you do the 'feeling' part o f 1he process, and you do

,h,i h, , howing them how they will make a diffen:nec, giving them examples o f how their fel-

t,," ,;11pio)ces make a difference, making them feel welcome .. .. ll's those kinds o f things 1hat hl ,., noi JUSI beuer re1cntion, bul a more inspired workforee."

13

Ho1elier Rilz-Carlton's orientation program balances two importan1 messages: "You are

'''" p,,n of an eli1e. best-in-class organization," and ''We' re lucky to have you." It plays a video

J.:,-11hing "ha1 i1 would mean 10 be in the cop I percent in various fie lds. As images of Bill

G,1<, and 01hcrs in 1hc top I percen1 of their fields Oash across the screen, inspiring music wilh

the lim·, , ·Whal have you done today to make you feel proud?" plays in the background. The

.,J,o lh<n tran, i1ions in10 Jelli ng the new hires know Iha! by being wil h Ritz-Carlton they arc

Jlll"ng 1he 1op I percent in the hospitality indus1ry. 14

Socializalion ,s a long-1crm process of planned and unplanned, formal and informal

" ' " 11,c , and experiences through which an individual acquires the a11i1udes, behaviors, and

Ln,"' lcdg,· needed 10 successfully panicipale as a member of an organization and learns the

fim1·1 ,uhun:.15 Socializa1ion helps new employees understand the val ues. processes, and tradi-

t •n, ol 1hc compan,'6 and prepares them to lit into the organizalion and establish product ive

•01, rcl,11 1<11hl11 p,. 1 The process is important for all employees, including part-time and 1empo-

r.ir~ l' lllr,lo)ce~. and cmpl o) CC S moving to new jobs within their companies.

I N an organ i1a1io n's traditions and values to survive, new members must be taught to

~-. 1h< "rp n11a 11onal 11 orld as do their more experienced collcagues. 18 The primary goal of

""Jl11auon ,, 10 gee new employees up 10 speed o n 1hcir jobs and familiarize them wi1h the

l'rt=Jn11J11on· ~ cultu re. which consists of the company's norms. values. behavior patterns. ri tu-

•\ l.m~UJfc, and 1radi1ions. 19 A company' s cullure provides a framework chat helps employees

in1erprc1 and undcr,tand their everyday work experiences. One o f the mosl importan1 funclions

ORIENTATION lht p r,xtSf of complt t111g nt'W Ju rtJ'

,mploymtn t•rt luttd f"'~n, t1rk " nd

Ju,ru/ior,unx llitm K ,rh ,,,,,r ;obs, cOK'o,Urs, ,,urL fp,Kt .J. wo r.l too/I, ond tltr co mrxmy's pol1cin ,md INntfits

SOCUUUTIO.V

o l011g•ttrm proct n of pfomitd ,111d

u,1pl01111t d./o m 1al and lf,/omkJI

a ct frit1t'S and t :q•tnr nas tlirvug l,

" lucl, 1111 md11 id ual acqu i rts the att1tudt J, b t lun iors. a nd bto"ftdgt

nl'tdtd to succtss/ully panm patt aJ

on org,1111:at,mwl mtmlxr mid ltt1n 1J tht fintt 's c1.1lt11rt

CULTURE ,w m,s, ralut .1. 1Nha1 ,or (Hltturu. nt11al1·, lang ungr, a11d rrad,ru,,u

that prO\ 1de a fromtwork tlral lat lps

tmplo) rts mtrrprrt and undrr:stand tht'lr t \tr) day "Ork o ,ptritncn

112 Ctup1cr 12 • \l.uuimg Worlfr-.,"'C A l''-'

£.\//'LO I £ £ E.\ "GAGE.\/£.\7

1hr CUirrr 10 k h1<h <"'l'io)trr arr

cngaccd in W, r "ort and ltn-.. " 1U111, 11,n arr ro put m £U1TJ rj/Pf'f

of <.ocoalo,auon os h> he lp nc" hon:, aJJU>l to the comf.:"'y'S culture. According 10 no ornuon <ehol~ John \lw, ~l:iancn anJ Edgar Schein -0 led "'<QI.

Any 0'l?anozational cultun: con,o,IS broadly of long-, 1nnd1ng rules of thumb " hJI spcc,nl language and ideology that help cJot n mcmbcr·s everyday c." a some. shan-d siandan:b of n:lcva ncc os 10 !he cnucal ru.pcm of the "°"' ~1 pc":.,""'· :lC'COmploshcd. ma11cr-of-foc1 preJudocc~. model< for social etiqueuc and dcos ••& ccna,n cus1oms 311d n1wtls w~csll\C of ho" members arc 10 relate 10 col;;c-nor, subord1na1e,. supcnol', 311d ou1sodcr.., and a ,on of residual ca1egory of som ~- pl;un "horse sense" n:gardong " hnl os appropn n1c nnd "sman" behavior w ~ rather <J1l!nnw11ion and " hal o, nol All of these cultural modes of thonkln• f,-.1

1 on the

d . r O • - ong. Ind oong arc. o cou=. fragmented 10 some degree ~" ''"8 me within large organ,

co vanous '"subcuhurc~" or "organizauo nal ~ gmenb ." lalJons

Clear I}; good soc,ah , auon can con1nbu1c 10 both the comP'lny's and emplo , 1cnn success.· ' In fact. people "ho arc socoal JLed " ell on terms of their organizauonJ:

10111- to ha,e htghcr mcomes. be more SJ tJ~licd, be more 1n, o hed wilh their careers and es lnkl nblc. and ha,c a be lier sense of pcr..onal 1dc nu1y than those" ho arc less "ell soc,o.1:=221dapi soc1al11auon can significantly lengthen a new h,re·s ndJustmcnt peri od and dramaucall Poor the odd, that the cmpl0}CC wo ll lcavc.13 Y •ncrta,,

When the -. ondow 1rea1mcn1 manufacturer Hunter Douglas improved ns socialiuuon CC>S. the finn d1,co,crcd that 11S new-cmplo} cc lumovcr 31 the Six-months marl., fe ll from 1r 16 pcm:nt In add11ton. the aucndancc and producll\ ny of the fi nn's new cmplo}ccs

10

did !he qualny of Ihm "' orl... Loke" ose, a, Designer Blond,. omprovong 1hc soc ialol&IJ.:'°., cess hclp..-d reduce employee turno,cr from 200 percent annually to under 8 pcrcenL TluJ r helped the company red uce 11,, annual rccrunmg budge t from SJ0,000 10 just S2,()()()_2A one

A succc,sful soc1ah, atoon program can help Jc»en the rcalw shock newcomers f~ d fac1l 11;11e lhcor adjustme nt and 1n1egra11on in to the organ11.auon.' Valero Ener8JI Corpoflllan bclocves that effcc u vc hinng doc, no1 end "'th an emplo}ce·s acceptance of the firm's off: Instead. the company "rconforces the sale" so 1ha1 new horcs feel good abou1 the1rdccmon IOSlp on. Follo" 1ng an on1 11al oncntauon on an employee·, fi r..t day !hat co,·crs !he ~,cs of wodu, al Valero, the company's pres1J cn1 lead, a hal f-day " \VIV .. (welcome 10 Valero) soc,alwu.! exiravagan,a. The fir..i half of the c. tra, agan~a covers ··"·hat Valero will do for }OU," and the second half JS an elaborate pn:,cntJU0n about the key clemcnis of Valero·s corporate culture :?6

One study fou nd 1ha1 compan ies " ho in vested the most ume and resources on soc,aliz.auon enJO}cd the highest lc, els of employee engagement !7 Employee engagement, or how engaged cmplo)CCS an: m their 11,ork and how "ilhng they arc 10 pu1 in exira cffon, has become I COIII• ponenl of competlll\c advan1agc for many companies Soc,ahzcd employees who fi1 1n 1<ell 11,11h

lheor Jobs. "'ork groups. and organ11auons and who share their finns' values arc more engaged Research hos ; hown tha t 1he engagement of a finn 's employees will determine the com:"> ·s succc» and that Joyal and dcd1ca1cd employees " 111 outperform less engaged emplo)ecs.

The Phases of Socialization

The soc,ali,auon of emplo} ccs ,s an ongoong process that can last for a year ns new ht res adapt. form " Ork relauonsh,ps. and fi nd theor place on the organi,a1ion. The soc iali za1ion proccs, l}p<- cally includes three phoscs:29

I. Anticipato,J' socialization. Jn1crac11ng wnh the company's n:prescntauves (e.g., ns rccrwl· crs and managers) before cntcnng the company develops new hires' expec1a11ons about the company and the Job. Ensun ng lha1 all cmplo}ccs who interact with recruits reonfOftC

the company's culture and cApcc1a1ions of cmplo)ccs can enhance the effccuvcncu of

the an11c1pa1ory <Ll£e. 2. Encourlltr. When stanong a ne" Job. employees receive irai ning and begin lcamoni about

the compan> ·• culture and nonns. and how to do the JOb. A higher qualuy work relilllon

sl11p is crcJtcd " hen managers help new employees undersland their ro les and duues and undcr,1and the messes and issue> they arc hke ly 10 experience,

3. Stllling in. When they begm feclmg comfonahle wnh their j obs and " ork rclauomhlps.

nc" hires become mlerc,tcd tn the company's evaluation of their pcrfonnance and pos S1hly about potenual career opponuno11es wuh,n the company.

j I

II

I

Ch.1pta 12 • ~l.inJ~mg Wor~forcc f )IJ,~ 333

• 1 . ation Choices

so''' ,z ,,~ri:-nt l) f'l'' "r nc,, cmplo)ec,;; need difl crcnl socmlitat1on c ~pcnc nccs A college rccrull "11h

p, ,J i'r n,, \, ork expe rience need, a di ffe rent and more c , tc m,l\ c ~oc,all Lation proce~s than

tll 11~ ~•, ,ll.•ncnccd n~w lure or nn employee rccc1, ing a promotion or lransfcr Soc1ali1at1o n

J ~ 1 rJn

1 .. <.hould nol o, cf'\\ hclm new hires " 1th too much 1nfom1:111on to retain. TI1erc :ire many

r:.\,·111 \\ 3) .. to soc1ah,c OC\\ cmplO) cc~ Table 12- 1 sumrnar11cs these choice~. " h1ch we • • • 1110 rc detai l ne.i Ji..,U'" '"

.f lfl'IE VERSUS STAGGERED PROGRAMS To prc,cnt on formauon overload, many com- o~E, , u-< 3 , 1,•pped or staggered approach to socoalizauon. Holding brief meetings the fi rst day rJJ iticn r , r r the nc ,t fe w \YC~ks can help prc\'ent "infom1a1ion overload."' Alt.hous h a o nc-umc

~.,:ing can be cheaper. holding the mcc11ngs 111 different departmcnis or different ports of the \.,.rJnitJUOn hd ps nc,v lures get a more co~ plctc u~dcrstandm,g of the breadth of the company. r: h , (Xtali 1JIIOO ac ti v ity or Mcp c an be gl\c n a umc frame for complcuon or left open, and "": .. ~•nii:r- cJn be rcq u1rc_d to complete )OC1ahLal1on cxpcnenccs an a set order or rando mly.

When Qualcomm hired more than 2,000 new employees on a single year. 11 faced a chai- r.,. hs pre, u,u s ~oc1al1 ta.tion program was a stand-alone c, c nt v. ith lntlc rein forceme nt o nce

• ' ,p.,nt, lcfl the clas<room, The company recognized it needed 10 change. 11 partnered a small r.lfml'lf kJrmn£ professionals with business leaders, managers, human resources and scoffing to •r~~. :m cnJ to-end 4iiocializauon and on boon.Jing program. Now, Quak o mm' s ~cw c mplo)cCs ~-n:J ; ipJIC in one-on-one conversations with people farnilinr with the linn. on line and classroom :ur'n M fJl·1l11atcd group discussions. and peer mcn1oring 1hnt begins as soon as fin3hs1s acccpl

~ 1 1r·c;1;phl) mi:nt offers. JO

INDIVIDUAL VERSUS COLLECTIVE SOOALIZATION PIIOGRAMS Individual socialization iniiilh'\ soc1all11ng newcomers individually. An apprenticeship is u good example. \ Vnh

collrrti,r socialization. new lures arc socinli,cd collccti, ely and go through a common sci of ,,l"n,n,« as a group. Collccu,·e soc1al i1a11on is bcs1 " hen many people have been hired 10

fi'I , r .1111cul'\'; type of Job. This can occur, for cumplc. \\ hen the fi nn is expanding and hinng

-,1) J"Opic

FORMAL VERSUS INFOIIMAL SOCIALIZATION PROGRAMS fom,al socialization i< a struc- lU!l d ;cx 1al11auon process cond uc1cd outside of the work , cu,ng using specifically designed

&H•Jfj■ Socialization Program Choices (re •,me versus staggered programs prog rams that put newcome rs throug h one long stss o,, versus many smalle r ones Cc eave versus ind1vrduaf programs programs that put newcomers through a common set c' ellperiences as a group versus soc1al1Z1ng them one•on•one

Fc•ma 1,,e,sus informal prog rams: programs prov1d1ng structured soc,al1zat,o n using SFe: ' cat y des19ned formal act1v1t1es and matenals away fro m the work se tting versus

"'or..,al social zat1on done by a new hare's coworkers on the 10b

Se, .. er t al versus random programs programs that require recruits to pass through a series of a st "ct steos to obtain fu ll e mployee status versus using a ra ndom sequence of act1v,11es

F ,.ed ve•sus var1abfe programs: prog rams prov1d 1ng newcomers with a fixed timetable ass=c a:ed w1th completing each stage in the transition from o ne role to anothe r versus p·o~ d .,g no consistent timetable and few cues as to when to e xpect the next stage

Tc.,rr\1ment versus contest p rograms· prog rams treating each soc1al1zat1on stage as an e - rat 0 " tournament" Y.here fa ilure means that a new hire ,s out of the o rganization (fired)

•t·s .. s a · concest" in which new hires bu,ld up a track record and "'batting average"' o ve r time

Ser a' ..,ersus d1s1unct,ve programs. programs using e xpene nced orgamzat+o nal members as ·:: e models or mentors who g room newcome rs to fo llow 1n the ir foo tste ps versus prov1d1ng

"'Otoe riodels o r mentors

"•est,ture versus d ,vest,ture programs· prog rams that ta~e advantage of a new hire's unique s- s ve·s1.1s trying to deny or stnp ~way personal charactenst1cs throug h soc1alizat1on

/ ,\ 'Dll' ID UA L SOCUUI'.A T/0 ,V

a JiK 1<1li:at1on proco, 1i hrrtb)' nC"<mni'rt urt J0<1a/t:,,d mdiuduall),

cu m un appuntir r Jlup

COLU:CT/\1£ S OCUUZ'.AT/0.V

o "'" iuh:a11on proa u o l1trrb1 ,ir ,iromrr1 go through u co,11111011 u r of r..qwrit'lC't S tu a group

FOR.I/AL SOCUUI'.AT /0.\/

a uruc-ruu d .1000l1:.,mun proaSJ

rondun rtl ouuld t o/ rht 1ior, 1rtnnG u1111,.: 1pr<1fir ally dn,g nrd ,,rm mr1 andmnttna/J

J

I

;

I

334 Clurt<r I! • \l.uup"!' \\ on.fom: ~lo"

I\ FOll\lAL WCI <LIZ.< TIO \ WI -.srr., fll,..J, 11'1 ~-J,0 "11.,a/L:GJt~lft P"f'tY'\J r uttdt... ml b\ .r~ lt&rr i,-....mt,n

SCQl £ \ T UI. SOCUUZ,lTIO \

d '""w.'t;.in~ f"'\'t r '1 r"'-it/ollm,,.\" a lp«lfi~ u.,_,.,_ r ,,( Hrp,

IU.\ DOl/ SOC!,tuz.arro, Q1,:wlCJ.11oi1 wr, af'f' ~.CIWW.l or ,......_ffl\(' FIXED SOC/ 11.JZ,< TIO\

"--.'14UJUI°" rrvtn, """'"bv ""'" lwn tJFr u,,/onvd III od\W1Cf """' 1Nar p~n flutWJ •1U tnd

l ,UUABLC SOCIAUZ,<TIQV

"'°°"'Olhunprv<,n-.lvr'f'b\ n.p/mtt~ rttmr /,..,. clw-1 GJ w i.Jarn ., ,t;'ff11Mrp~~nodJro Old. Olfd d,,r lll'W.lutr Utl I 11ttt.uan/Y

,ro,w,nnJ « fUJJ OO!pW"f't'J

TOl' R.\A.J/ £ \T SOCIALJZ,•TtON

a coooiomonpn,,uu 11lwr,b\ raclt J1G,J("UGn ,.f'llfflutartanlrn,,l'NJIPU'nf ..

a,,da,sni lt1r'l"U011toftltt

11"t'Ql'IOJD0,1 1/ Iv or 1lic fu,J.1

C0 \ 7£:sT SOCLIUZA TIO\'

a lOCIWc.atu• proc,u a Mrrby ,a.._Jr uaµ u a ·c-o,u,n. and toe II ,va lurit tanu a ll'UI. t ,,,ord. or · l,amni Ultra,,:, • aftu ,acli .1ta1,

SC.IUAL SOCLUJLI TIO.V

a w,oQ/ouwnprortu •ltt-rrtr, mrrorm t orJ..uu:.aDonal ,_,n1w,, t1ru UJ fT>lt wtnltlJ Wtd """"'"'' for ,in- lurn

OISJC:\ 'CT/1·£ SOC/AULi TIO.\'

a 1«1Q/0UJon prouu ,./ttrdn

N"IIC'omrn arr kjt alo,t,r lo dn,top Wrr na" IIIU'rprrwnoru of tN o~wtdil.lw.lht:WUtltey

obvn,

IS\ ESTTTLH£ SOCJAUZ,<T/0.\'

a sa<uJ1;o11utt prvu\l that rraf/irnu

J'U'IIComtN " '' <tlfl/idnirr a,w rrjluo tM Jar, dtat 1N u r,;wu.:,lllOlf r st111ar l'll"ntbtN HJ/11, 1hr J.,un,.U'dtr

fPld pawn.al clwru, trrurtr1 of tltr

"'"'~" 0 /\'HT/Tl RE SOCUULI TIO\ '

tnrJ to t!r,n IJlld ,,np a1o1u\' crrtam

f'('T\11MI tharactrnu1t1

acu, 111..:'.) .inJ matcna.ls lnfom,aJ socialization 1s an uMtructun-d ,oc,nhzat,on procc on-lh<:-Job b) • new h1re's co,.orl c~ More ,1nJc1urcd, formal soc1oh,auon incrc " <oncJu,l<d

JOb sau~tacuon :ind rrducc~ Lumm er Add1uonally, ~oc1al1tJUon mcn:a,cs cmplo.15C:.s nc" hire,

to be Pl"OJClJ,c. Although It nught !teem that a more ,tructurcd oncntauon -... ould 1~;::,•cndtr'IC)

CC!t fmm acu ng on their O\, n, in fac t the op~11c ,~ true Slr\JCturc promotes proacti,c crnplO) on the p;u, of new emplo)CC>, ,uch as their a,l1ns quesuons. secling fccdb:i.:i._ • nd bcli.1 10r relationship, " 'th Olhcr r,:opk in 1he orgon1Lat1on TI111 con increase the Job , bu,1J,n1 comm1tmcnt oi the nclA hu-C!t '~ '

3 U),actJon ~

SEQUENTIAL VEltSUS RANDOM PROGRAMS Seq uential socialization " 0 '«i,l) procc~ thiu folio"':, a :,pct:1fic :,equl!ncc of Me~ Random M>Cialiuuion occurs v.t~..alKin ~~

1aJwmon step:, arc amli1guuu, or chJng,ng B~coming a doclor 1, often ~eq ucnt1n.l, "~ tht becoming a manger 1, ol1cn random In ranJom :.oc1a\11a11on. "hat nc,, comc~ learn rtb things tn "h1ch the) an: mo, 1 1n1erc>1cd ma} be lhc

FIXED VE.RSUS VARIABLE PROGRAMS Scqucnual and random soc1al1tat1on address lhc of" ent,, 8) contr.1>1, rixcd and , anablc soc1al11auon oddn,ss 1hc tcmpor:il na1ure of ••- onlct Fi -~ ._,. . f ""''""" L''h . .,,. sot.1w tzat1on proce~scs in orm new hires in ad, ancc " hen their proballOIUJ)· will end \ Vuh varia ble socialization. emplO)CC:S receive few dues b 10 when to c:~ ~:\ls probauonary pcnod, to end Moreover. the umchnc •~n ·t nc:ccss:1nly con~1 slent ac~ 1

~ ccs, 'A'tuch dc-cn:a.\Cs the ah1hty of cohorts 10 rcm:un collCS1\e o,cr lJme p 0)

TOURNAMENT VERSUS CONTE.ST PROGRAMS With tourna ment sociullzation. each \l.l

of sociahuuon 1s an "chnunauon tournament," and a OC\\ hue 1s out of the organtL:ihon ,f: or she fw ls.H Many law lim1 , Ul;jC tournament s.oc1ahtauon. If 3 manager •~ puni)hcd or fircJ

because his or her pcrfom,ancc falls short of cxpcctallons or because he or she fo.1 ls 10 folio•

accepted nonns. ,;;urv1\ 1ng cmplo)CCS quickly learn how to a, 01d a s11mlJr fate and become

n~k a,erse Tou.mo.mcnt i.oc1al11auon tends to s110e mno,auon and n)l 1akmg and ~ucti 1 cl<bely conltollcd culture and a homogcncou> '" orl forcc with , cry s1m1lar norms. Because

tournament ,;;oc1ah13uon lends 10 make cmplo)eCfii more in.secure: and ,ubm1ss1vc 10 authonty,''

11 1s 1ncons1stent "•th the 10.lcnt ph1losoph1c:fii of man) organ1a uons ll also often n:ndt" ill organ1,a11on copoblc of miling only ,lo" , incremental changes 10 11s culture ond •ay or dolnr busmc.ss.36

\Vuh co ntest socioliLDlion. each socialwrnon ~tage 1s a "contest," 11nd each new hire eann

o uuc:k record and "battmg :i,cragc" o, cr ume A person's failure 1~ generally con~idcrcd 1 learnin g cxpcncncc and no1 grounds for pun1fiihmcn1 or tcrmma11on

SERIAL VERSUS DISJUNCTIVE PROGRAMS Str ia! socialization IS O soc1•hzauon proct\\

"hereby supJX)ftl\C organ11allonJI mcmbe~ sen e as role models and mentors for otw bun

Newcomers an: generally .-peeled 10 follow in their mento~· fooisleps. At bolh Macy·, and Cisco Systems, all en1ry-lc, cl hires an: mentored

37 With disjuncth·e soclllll,.atlon, nc~comm arc left alont: to develop their own 1ntcrprcuu1onfii of 1hc organ1zauon and si1ua1ions they obsme

Sena) soc1al11.,3uon maintain~ the conunu1ty of a finn and 1b ~ nsc of history, Under a <hsJUl'IC·

uvc soc1ahLauon procc~\, nc"comcr5 dc,elop their role:~ in 1solauon Disjunctive scxial1Z1U011

often happens "hen 1hc "old guard'" or a com pan) ,s remo\'ed ond new cmplo)CC5 111.c lhc~ place llus can occur, for eumplc, "hen a firm mcrses or ,s bough1 ou1 by anOlhtr complllt

and ne w manage~ and emplO)CCS on: broughl inlo the company

INVESTITURE VERSUS DIVESTITURE PROGRAMS ln 1<s titutt socialization rcamnm ... comer~· sclf-conlidcnce and rcnccts 1hc fact tha1 1hc organi,auon's senior rntrrtbers value IN lnov. ledgc and personal charactc:n~ucs of the nC:\\ COmCrfii Organ11n11ons use in\CSlllW'C lACUC:\

when 1hey ,. .. , 10 cap1tal11e on 1hc nc,.comc~· cmung sl1lls and l no" lcdgc. ln,csU-<OCW·

11a11on tells recruit,, 1ha1 the company l1lcs them JU>I the "ay they ore ond thol the organ11atlcl \\3nL'i. 10 uul11e their unique ,l11ls Diveslilure scx ia.llzation, by contrast. is an aucmpt toitnp

""'"Y people", personol charactensucs by requ1nng ne" comcrs 10 "pay their dues"' before the) can become full orf JDllOllon.11 members The r,"1 ) car of many mcd1col schools is hlc tlus,""

the m1htal) ·, boo1 cnmp Under dl\cSllturc 1acucs, ,,rgam1auon s: explicitly 1n1c:nd to stnp 1"'1}

Ch•!'"' 12 • M;uugmg I\ or.force l~ow 33 5

, t\,hJ\1{'11" anJ attuuJc\ in orJcr lo in1r0Ju1.e ncv. ones desired b) the organ1n,11on The ,\,~ul'I£ r· , tx 1.1h1.111on rirocC)'i ,~ gcncrall) cuns1dcrcd unJcl1rablc in mo)t " orl organa,auons.

,\,t•IU ~ h u ,

1 b,r ,H1fl ,1tua11on, in " Kh n trcme d1~1phnc h rcqu1rcJ l8 One stud)' of 237 lawyer:,

.-,cc~ tni ~ L,,u,c 11 cJn rcttu1.rc p..·uplc to hcha,c 111 \\3) ' coun1cr 10 1hc1r ov. n sen,c of ri,h1

l,,i,1n 1

~!! 1.h\l',11turc , oc1ah,a1ion " a\ (Xhlll\cl) rcla1cd 10 c1hical confl ict which\\~ rcl.itcd ;~: ~:\ ~;,w11on:1l nhau,uon and lo\,cr career tulfillmcn1 39 ·

'In a.ldiuon to 1hc h,1.;1c 1ypcs of <ocrnh,auon pro;r:i1n; a rimt 11'll lo choo<e from, there

i• ,1th-:r ~h1..m.Cfii 1hJt mu,t he mldc "hen ll comes lo the s.oc:1al11a11on proccs"· 1nclud1ng the

1,1 ·'"1nl,!

, ,r,,at to i11rludt: What people, pohUC\., 1.uhurc , IJn~u.1gc, Job n:4u1rcmcnt.), and "orl ~,,,·,..c~ ,hould be d11-cu"', cd? Which clement\ of the company'i, h1)IOr') , bus1nes) guab , JnJ l1.') ,tr~11cgu: obJeCII\C, ,hould be mcluJcd'!

, \\liflltl to illrl11dt: Which people ,houlJ be ln\OhcJ in 1hc ,ociah,auon program- 1hc n..:\u..orm:r·, h1rmg mJnagcr. co"<11\..c"' c'i, cnu:il to the nc" lure· .., Job >uccc,-., or perhaps

Lhc nl' " hu,:·, family~ , /low to int ucJ111ology: Should the soc1ahn111on program he \Vcb N.Sed or should nc"

111,~, Jllcnd m-pcN>n?

~• , t, \\\' J1,..:u,, each of these choices

WHAT TO INCLUDE In adchuon to fanuhan11ng new hires with the: eompany· s policies, cffcc•

u,c 5,"- 1ai11Juon programs get new hires productive fas1e r by teaching them about the c omp3.R) .

,h le~ ,1r.11cih: obJccuvcs, and " ork processes and help 1htm continue: to feel good about Joining ti. u .. ,mrJn) Goldman Sachs has a .. DJ)' One: Oncntallon," follo"c:d by a scne> of c-m:ul\ sent J.inng nC\\ cmplo)cc,· fi rst IOOdays "1th lip) to help Lhcm to fit into the company's cuhurc. Si x

1,.. '"d'~ monthli nftcr JOmtng Gold man, ne"comers nuend a onc•day symposium, led by a top

!fa.er 10 £\\'C them an opportunuy 10 tl1scu)s Lhc firm's values of "tcam"ork, mer11ocracy. and

in,~.:nt~" through case studies."° ~ Ahhouth ,ocu1Juauon 1s mo)t important for nc:w orsanaz.auon members. rcgard le.).s o f

l"1~··, )~ars of v.Ofl C),pcncncc, understand.in~ the cultural a,:,pccts of one·~ "ork group and com-

f.l") .1rc c,,cnual to funcuon1ng erTccuvcly Some of the 1n~orma11on c:mplO)CCS should learn t.,n.r..gh ""'1.1!1,.1uon mcludcs mfomuu1on about the lirm's

I polmcs, including informauon ,i.tnut lb fonnJ I ;imJ informal pov. cr strue1urc,;; and " ork rclauon~lup), c11lture, 1nclud1ng the

.. •mr.1n) ·s nC'nn,. \ aluc), bcha,;or patterns. ntuals, language. ond trud111ons; and orga111zat10,wl ~r\l/) ,md po/mes. including unders1anding the rulc:s and pnnciplciiri that maintain the culture of IJ"~ 1 1i.:Jm1.1t1on A lirm's human resource~ pcrwnncl arc usually rc:,pons1ble for conducting

th!. ~l,;nr-in) \ \OC13hlallon programs Ho" cvcr. these people should folio" up and coordinate •""~ir dforh "1th the 1mmcd1a1e supervisors of nc:" h1rc:s to a,01d in formauon bc::tng dupheatcd

~l'1llll~d

WHOM TO INCLUDE Some compamc) recognize that a new JOb offech an i:mploycc's entire fJ 1 I) 1 hi:rdorc, .!tOlllC firms incl ude: people's fom1hcs in the soc1al 11auon process to fac1htatc

lh u J~ll1m.111on to the company G1v1ng new hires' families 1n fonnat1on about the arc.a. or C\ cn l,,J\ ,f J .... ·p.1r.1tc fa.m il) oncnt:111on, can ca..,c their tran, 111on mto the finn and 1ncrca~c their

~ r1·1Htnh.nt tu the company."1

1hc cmplo) ce, who \llll he 1mponan110 the ne" hire', JOb succc.- should ploy a role m dx ,l\.1,1l11Jt1on proccs,. Holding mJnascrs occountable for the ~uccess of their nc:~ hires

, "Jh,, in .. r1.•J,c the chances of ge1ting nc" ' h1n:s s1artcd off ni;ht At many compa n1c::,, top r,_. !," "1.:k111nc ncv. employees v.hcn 1hcy fi l"fiit report to " ork At the Vanguard Group. either 1,e "'"'P·'")·, CEO. Jack Brennan, or o monllging d1rec1or uucnd, cl'cry "Welcome Aboard"' '•" 11•1 for 1hc Cl1mran) ·l new "crew members." Cisco CEO John Chambers hosts n "Chat

11. ·!i ( hJmbcr," nu.•ctmg for groups of new c:mplO) Ces several months after lhcy stan "1th the ,. :'l.ln) M11.rtN.lfl'~ Bill Gate) !.Omeumcs leads Microsoft 's oncntallon Q&A scssion:

0

C ,r11,,I One Financiol Corporouon, • r.nancial services company based 1n McLean. \ lft1n1J, pu~uc, J d1ffcn:nuauon .,.,r:ucgy and enjoys acompct1ll\e achantagc based on innO\ :l·

'• r J11J \. U,tomcr 1n11m:1C) . The f.bt~gro\\ 1ng company's culture of inno,ation 44

supporu 11.S i.,-: I .m clJhorJlc tc,;;uns model to prepare and 11u lor nc" fin::indal producb and ~crv1ccs to

336 Char<a I J • \l~n~ \\ orl.fon.'C Ao"

:•ITercnl ronsumm" To beuor c,tculc 115 slral<g), Cap,ul One wanted 10 qu.,cll

""' up 10 >pc«! and cffccu,cly >0<oal11c 1hcm onlO the compan) The lirm ere .J bona nc., progr-'"11 on "-hocb all new IISSOC131c,, spend thm lio,,1 1wo days lcam,ng abou: th

I nc~ It.it ' "' h1>tOf), ompcrau,c,, -.luc,, bus,nc,sc,,, ond product>. The company also PJlt c coml'an)

assoc,atc wnh a mentor from hos or her team for the person's lirst few "CCls on:; ~h nc. ,1gcr of smular rank from anolhcr dcn1nmcn1 "also asso•ncd 10 serve os an .. ., 1

ob I\ m.,.

~ -· . --~ to P new manai;crs get to kno" Ihm p,.-cr> and ans"cr qucsuons s,. monlhs a:ri: """"> the Job, new leaders rcccl\c a 360-degrcc TC\lcw to odcnufy "here they can male 'wl.llj progrc,s on mccung goal, Jnd cxpcc1a11ons, and 10 1dcnUf) ongoing dc,clopmcntoJ addilJon.i >lralcg,c,.46 COIi, 111d

HOW TO USE TECHNOLOGY lnlemouonol s1alling agency Randstad North A

• soc,ohzauon procc» for ,ts new hues tha1 includes 16 weeks of Job shadowu,~ ha, performance rcv,e,.s, and kno " ledge 1cs1> Reports on lhc new hare' s Pl\l'1'<>S arc ll'llauis. new cmplo)cc's manager, and new hare< arc also asked 10 evalua1e the socoalizauon ;:.:.,~ Aulomaung pan of the socoah,auon process and using the company's 1ntrane1 helps toe and >lore the stream of paperwork and e-ma1I correspondence rela1cd 10 lnlJrung, the OOldiaa, benefit programs, and con1rac1 opprovals V,o one au1oma1cd approach, new lures~•

ne1work access ond gi ve n copies of 1hc employee handbook. The sys1em automoucally.,:: the lrlllnong and admon1>trau, e aspects o f the soc,alwiuon and onboardong process 41 This help, the linn ensure th•t 11< legal and corporal< pohcics arc being met by traclung the iOciallJlllao :icuv111cs new hares undrrgo ag111nS1 an onhne comphance chcckhsL An automated oPl>t<lldlca also improve the qual11y of the soc,ah,auon process by giving honng managers IJmcly l"Cllildia as to when and how to ass1m1latc lhctr new subord1n:1t1:s.

Perhaps on extreme cumple of Web-based socoahzauon as IBM 's IBM/iPlay.18M•ftay consists of• sci of 1ra1n1ng 1ools that use ,•odco game 1cchnology ond 1hrcc-duncns1onal '-na environ ments 10 facohuLe new hare soc1ah u11on. IBM employees on Indio, Cluno, and the u..,i Stale< tL<e "avaUIS," or rcpresentauons of themscl-cs. on one of two Internet vonuaf _...,

PlaneShifl or Second Lafe. 10 expedite theor orienuu,on and develop men1onng relationlhiplwfdi other employees. The Internet environment ollo"'s new employees around the .,orld ID -,ie. mteracL and share ode:ts on the v111ual "'orld before their first day on the Job. They oho ... how 10 sign up for benefits. develop compu1c r code as pan of a global 1e11111, and dc>doplllc, skills. IBM behevcs that because the soc,ahzauon as hke a ,•,deo gomc, people an: mo,e'llillios 10 take risks and be more nexoblc ,n !hear thonkong.'

9 Sun Microsystems uses 1wo onl,m 'Wldeo games Lo provide a fun way for new hares to learn about the comp,ny structure and bmcq, One uses a puulc format with specific goals and "Spec1crs" 10 destroy. The other as a slower IIIOr<

Slory-bascd gamc.' 0

Web-based soc1ah,a11on may nOI be b<s1 for all t)pes of so1uauons. ho,. c,cr Oae lllldy fou nd thai compared ,..,lh employees who anendcd an on-person oncntauon scss,oo, lhcoe "'- onentauon was computer based reponed lo"cr lc,cls of sociah,otion in 1crms of the people,

pohtics. goals. and values of their organozauons"

Wh at Makes a Socialization Program Effective?

An cffccu,e socoahzauon program should acu-cly 10>0l,e new employees, encoura~• thtm IO ask qucsuons. and clanfy the roles they should play on order to bcSI execute 1hc rlllll s l>•"'"'" Strategy. or course, a new hires manager needs 10 be m,ohcd, loo, and 1al.e umc IO help !he person gel up 1o speed. Pairing co-.orkers or "budd ies" with new hires for a few d•>• or •cell can facohtate the or 1rans111on. This can be pan,cularly helpful of the new lures ha,c to u,1 • few "eeks or months before the company's next formal oncntation program begins COl!lffl('II oncntauoo metncs include employee cngagemcn1 lc,cls; 30- 6(). and 90-da) retenuon rate>,and

honng manager sausf:iction. . - rater Acchmaung nc" hares talcs umc, bu1 the on, cs1mcnt pJ) s off on higher commouncn~

ume 10 producU\11) , and higher pcrfonn•ncc. Research suggest> 1hal sociallllng nc ,.

1 cm~~

ecs as 3 rroup using fom1al acu, 11,cs and ma1cnal; on a prcdc1cnn1ned order"' othon • pee ·•

e • I d 'ding th· ne"' hut<"'"' umc frame, g" ong them access lo role mode ' or mentors. an pro" ~ . ;ausfllCIJOII soc ial !t uppon can enhance their loyalty, ri:ducc their turnmcr. and mere~ their JOb

Ch11p11:r 12 • MMJging Worl.forcc Flow 337

011unent 10 Lhe lirm >l According lo a ,u"•Y by the Sococty for Humon Resour ce

J ~l,,o f d ~ J..'.cni('nl, 83 r,.:ncnt 0 respon ing compantes use a formal onenu.uon and soc1:1li1a11on ,1~ ,;., 1,,r n,•11 cmplO)CCS The most freque ntly used formots arc group-based and ,ndl\ ,du

al ~., .. Ht:, cn fl(rtcn t of companies use 11 computcr•based forma1.H More than one-third or ..., ... , , \~

1 k ,...1,inal, md1ca1cd that their finns "ere m"csung more money m these systems.)"

II~ P t:nfnnunJtcly. forms ohen focus on the content of 1hc11 soc1olua110n programs, o,crlool.

h'1l''"·UP proc:cs'.). und do not cv11lun1c how \i.CII their programs ore " orldng Ne" employee~ •"' , ,•I oh< 1,nl) people'"' ohcd on socoah,auon programs Thus, 11 " 1mponanl for HR personnel --"'"•h,il tcc-dtiad. from C\Cl)Onc 1n, ohcd 1n 1hc procc-,s This Cllll include tall.Ing with neY.

tJ rl'')'.:' aflcr their fi~t )Car on the Job or d1~m1not1ng qucsuonnaircs 10 o.11 the people '~~•IH'J, in1..ludmg. fo r c,omple, lhc mamtGCf'S and coY.orlcr\ or new h11es. Having :i fomuil •:J ,ptr:m,i!IC fo lloY. •UP procc~'i not o~~ helps evaluate the program's cITccuvcncs~. 11 can also ~nuf~ ,\f'C"l' fr,r funhcr 11npro,·tmcn1. Next. we d1scu,, global mobility

GLOBAL MOBILITY \t.inJgin~ ihc no" of ta.lcnl through lhc organ11.auon and c,cn Mound the -...orld 1s an csscnual · of ,ir,tcgoc , taffing. Socoahzauon 1< only the fir~I phase of "orknow mon•gcmcnl Once ~ h,re, rue soc1al11cd, lhcor performance must be managed. top performers need 10 be rctaoncd. ~ J , ucrcs,1on planning must be done Of course, Y.hcn tumo,cr oceul'\, the C)clc bcsin~ anew.

,n Fnr cloh.1I corpora11ons. especially those pursuing a gro\\th s1ra1cgy. monag,ng "ork-

lN•' now~ncludc, munogong global mob1li1y. PC maker unovo rrcd,ts global llllen1 mob1h1y ., J l ,') fac tor on 115 growth, mo\lng key leaders across mrulcts 1nclud1ng lndoo, Br:wl, anJ ;_.,,.1;a (ti lntcmauon:tl manufoc:tunng, transpon.a.uon. and constr

uction supplier lngcr\otl Rand ,idi:-r~ :b,1s nmcnl~ 1n mu1t1plc businesses and locauons to bt cnt1caJ for cmplo)CCS asp1nnr

;;: 0

, 0 , kJdcrshop role,." At Domino's P,ua, all corporate leaders oncludong lhc CEO pa n,c,-

1. ,n oho<< annual 1alcnl summ its thal arc held to idenufy lhc llllcnt needs for coch busone« r'; ,ncludong ,ucccssion planning. L,adcrs arc expcc1cd 10 freely gh·c up 10p employee, when 11 ~\· an: ne .. ·dcd el,cwhcrc to facihUllC Domino·s overall growth.

st

1 · h 1, important 10 use a formol process when identifying \\'hoch 1alcn1 10 assign to global :,.,numucs ldcnufyong "hich cmplO)CCS arc ... ,lhng 10 mo,c, wh>1 skills they possc<S or need

;~•d"dor. and what skills arc nc«lcd on "'luch global as<ognmenis arc all imponant 10 both co,rl••)CC dC\clopmcnt and company performance. Rather than asking for volun1ccrs, tracking JJ<J ,t-ou, employees· skills and mob1h1y, and the s1n11eg1c and dc,clopmcnllll obiccu,cs of "''' , i.,bal ossognmcnt helps mouimi,e success. Johnson & Johnson uses technology 10 uack 11s IJkn~1111,bilil) oc:11,•1t1cs and compare them with its corpontc Md talent management p;oals 1111s . .... 11·1J1~·, nJJu,tmcnt'i 1n the face of changing business goa,ls.

59 . one of 1hc b1ggcs1 challenges in persuod,ng employees 10 accept global oss1gnmen1<

ot~a,nng ~lo~•I rclocauon as managing the upheaval thi, places on lhcir pcrsonol h, cs Loc~l "'"'" dc,unouon ,m ices providers arc often available 10 smooth tbe path for an employee s : ~" ' '- .,rrongong C\erythong from schools for childnen. housing. and sociol in1cgra1io,n for 1he .;,q,!,,~cc and c,cn 11 fami ly into the community. Pro,,iding add1uon11l suppon 1,1,1th 1mm1gra- l;Pf\, 1;i,c,, tc.-~hnology, and the physical rclocntion is al so import.anl. Shoner-tcrm ns\lgnmcnts

1 .. ,tinl! 11 fc" monlh~ arc less disruptive than ones lasting a yc11t or more. \1>n,gong rcpntriation, or reinlegrating employees to thcor home o~fice and country"' he~

1, .. J l t,JI .,,, 1~nmcnl ends. 1s also important. A global ass1gnmtnt often m0ucnccs the cxpatn· .11..:·: ,Jiu~, anJ beliefs. and tl can talc tune 10 settle b;)ck into \I.hot '\\Monce II very familiar .,·J \: £11l' l('lrtaMc environment Families of returning cxp31S may also benefit from m1crcultural n;r .11riJ 111.m progrJms 10 address their specific needs.

MANAGING THE FLOW OF THE WORKFORCE

\ Im , umpan,cs boast obout their low tumo, cr ra1cs, bul i, lo" 1umo,er alwa)S ,deal? Optimal r, h" c· 11 as tl,c turnover le, cl 1ha1 produce< rumou•r 1, no1 the lo\\<CSl tumo,cr o inn can DC ic, · 60 1

prod d bus ncs4; 1mrv,wcmcnt Achieving optima

'"' h1f hc,1 long-term lc, cls or uc11v11y an 1 .. - . f h th fi I gains ond c0>ts of

d1ITercn1 types o 1umo,·cr 1Jm 1,\lf mcJn, undcf"\Hmding bot e mancia ood b d r h 4, "'i:11 .t, i:ontrolltng \\ho ~tay!t and who goes. Tumo,cr con be either g or a or t c

R£PATRUT/0.\ '

'''""''"11,ic t' ffl{'IU\ttJ w th,,r hom, ojf,c-, al'ld rountl') ~ M" tltt xtobol a..n1,r1fflt''flt'tUJ1

OPTIMAL TUR.VO i ER

rltt n.nwu•r '""' tltJI prudlK't'' th, lt,~Nir IQflJ·lt"'1 lt',,h •tfprod~N11tn and buu'f(U 1mrru ,t"m(nt

33B Cluplo 12 • \IJ.lllSmg Worlforcc Flo"

VOLL".\'TARI' TUR.\"OVER

t11'1W\u dMt w CUI rriplmt't' J chmu

/.\~'OLL.\'TARY TL'R.\"OVER

tlotrJ'lb\ tr dur w rhr lJrgCU11:JJflQfl a.,Lng"" rmplo}u to lra1r

FU.\"CT/0 .VAL TVR.\ 'OVER

t11rnui tr 1NJ1 ruldu 11t 1M tkpanuu of poor p,t,fonMn

DYSFVl\'CT/0.VAL TUR.\ 'OVER

tummtr dut to tM tkponurr lJ/ tflut11t pnfurmcn

A VO/DAB/.£ TUR.\'Ol'F.N

wmoitr un tmp/o,u r ou/d liair

prtitnrrd

organ,,auon dep,nJmg on lhc dcpanmg cmploi cc The loss of a h1gh-perfo "'th a 101 of lcadcrsh1p UlJ:cnt could co~11hc urgan1,...auon a lot or money 10 irnn';;,

1r"f crnplO)tt and fut ure leader-.h,p talent, but losing a lo" •polcnual poor pcrfonncr opens lhe ob r ost re:,enUc pcrfonnmg rt'placemcnt Thu~. the ronscqucnceo;;; the organ11;1t1on foi.::~ can 1,,.,.J dor a lu&he,

I b d "' un <~too,J o n _Y Y cons1 enng the rcc.·ru1ung anJ n·plxcm~nt cosb. a fim1 meu~ as the. result of not over but also by comp.inng t.hc cost nnd producllvny of the forme r cmplO)Ce "hh the the 1Ul'1t proJuctmty of the replaccmen1 employee 61 Goo~lc de, eloped on olsonthm that ~°'1 ""<I probob1h1y th,i an cmploicc ,.,11 qu11 e,en before the cmploi,-c l nows she or he l<l, the aJlmnng the company to tal.c action to retain ,.:tlu~d 1.alent 62 might lt1\c,

Although many m:inagc~ are s:Hll'lficd "uh l'l1mply mm1m11mg turnover and me It agams1 brood mdu.)lr)' bcnchmarl.l'I, olhrr.; ha, c m~tcrcd 1umoH~r as a 1ool for ach,:1.111°1 maximum rc1urn on 1.he1r 1nvc,1men11n their ,,orHorcc. Rcstauranl ch31n Applcbcc's 1n1 a that not a ll tummcr has the sarr11: vaJuc ln~1cad or re\\ardmro manncoc~ fo r l.ccp,n ~

~ • &0V<IIJft over low, managers are rewarded for l,.ecpmg iumo,cr low among top--pcrfomung c

I Lin-

To create n petform:lnee-dnvcn culture and de,clop J compe1111ve talent ndvantAgc, Amp:::: d1v1des HS empl0)Cc< into the top 20 percent, the m,Jdle 60 percent, and the bottom 2r I Applebce's assumes that the los. of a top 20 percent hourly cmploice costs the compan ~ the loss o f a middle 60 percent cmploice costs S 1.000. and the loss o f n bottom -iJ · cmploiec octually mafes the company S5~ AccordmglJ. 1he company doesn ' t set re'::"' goals for the bo11om 20 pcrecn L Applebee, developed 11> o" n Web-based software °" that lets everyone from lop cxccut1,•cs to tnd1v1dual s1orc ma.na~ers 1dcnufy their best cm~ lllld determine how "ell managcn. arc domg at rctamm,g them 63 )CCS

The more money a comp.my )pends hmng .llld tr.unmg employees. the more c~pcnmeits turnover will be With an a,crugc "-' O)I 1x-r h1n: exceeding SJ,(X)() m 2012, unwan1cd lumO\crcu be very cxpcns1ve.r,.a For companies like The Conrtuncr S1orc. "hose human rrsourcc straic'1CS require extensively 1.nmmg nc" employees. turnoH r I.) extremely c~pcn;;;1vc.

AJthough the 1umovcr of high pcrfom1crs I.) obviously more costly than 1he 1umo,cror average or low pcrfom1crs, only h.:ilf or all compJn1e<; track 1urnover or top performcn 6S 1 odd iuon 10 tr:'.lclmg turnover by cmplo}cc qual11y, lr.]Ckin,g turno,cr by 1cnurc is als.o useful r.; many companies. the 1umover of new hires 1s h1 ghc.)1 during their fir,;,t one 10 1,,0 )CJJ'S 00 the JOb but much lo" er thereafter. Mani high-perform ms s.alcs companies octually find that the turn- over of employees m their firs1 year or rwo scn,c~ as a natur:11 fille r. Apparcn1ly, low prrformm who arc unable 10 mec1 the: aggrc~.)1,e ~ale.) goaJ.. of 1hcir finns actually c;;elf•sC'lcc1 out of thc1r orgn.n1L.auons quickly 1l1C sales prorcss ,onals " ho remain arc likely 10 ha,c tugh pro<llk.·u,u) and long•tcnn success with the compllny.66 The approprnue ume frame for 1radmg ne" hire turnover vanes by Job and by indu ... try In h1gh-1umo,cr industries. i;;uch ras rc r:u lmg, one month might be an .:ippropri.:uc umc fo r assc:,smg new Jure length of i;;crv1cc, \\ lnlc hcahh CW'C ori:an.1 zauons often use a 9().day marl, anJ other rnduqric, u,c \IX•monlh or onC•) car measure~ t-7 Jn add,uon, the U.S. Dcpmmcnt of Labor', Job Opening s and Labor Turno, er Survey (JOL TS)11

collects data from cst.'lbllshmcnts on a , olun t.:if) ha .... 1<;, mdudrng their employment s1ausucs and mfonna11on aboul 1heir JOb openings, lures, qullfi, l.ayom •. d1\Chargc:,, und other \Cp,tr::uwn, Tius infonnauon can help a finn fon.·ca:,1 HS rurnO\ er anJ interpret labor markel dt.:vclopmcnh 69

Types of Turnover

[n add1uon 10 rn1cmaJ promouons and transfers. " h1rh nho create vacancies, there arc SJ( pn~ l}pcs oftumover: voluntary. mvolunt.1ry, func1ion.:il. dy:,fonctional, uvo idahle, and una,ouLlhle

0

Volunlllry turnover is when the separouon is due 10 the employee choosing to lca,c the organ,· ,.auon for personal or professional rca,;on,. The methods of voluntary turnover include a '111-nUCn or verbal rcsignollon. not reponmg for work A< assigned. failing to return fro m nn apprmcd le,I\C of absence at 1hc end of the lea,c, or rcurcmcnl. In,·oluntary turnover 1.s when 1he sepmuon 1~ due to the organllat,on a;krng the cmploJce to leave due 10 factors such as the cmploicc's poo,' perfonnancc, d1sab1hty. or death. or 1hc finn·s rc~iructunng. dowm111ng, merger, or J1.'qu1s1uoo fun ctional turno, cr is the depanure of poor performers D)Sfon clional Jurno,u II the dcp,r 1ure of effec1ivc performer;;; the comJXtny "ould have lllcd 10 rc1ain A , oidoblc turn0H!rli tum 0\'cr that an cmploiercould ha,e pre,entcd by addrcss,ns us root cnusc. Low pay, cmpl0JCC di\· sausfacuon. and poor work and life balance bsue:, can all cause n,OJdablc rummer. Thc\.C foctof\

Fl , 339 Chapter 12 • MDJ1.aging Wori..forcc 0 "

. Jilii\u,,cJ 1n more dcta1l 1n lhe nc,1 ~cuon Una, oidohle lurno, cr I\ 1umo\cr tha1 i..·ould " ~ \i: ~·~·n pn:\cn1cJ by Lhe cmplo)cr. Th1) 1urno\cr can rc:,ult rrum rc!'l1~na11ons due to ~ 1 ·

1 ~ bc('onung a parent, cxpcncnc1ng a ~nol.b tl lnc,~ or death. or a spou.-,c accepuni

J, ,nir ~!; rtqu,nng thJt the family relocarc Org.1111.wt,on') generally try to mm1m11c 1urno,cr ,"•

1t1.,.r J lunt.lf'Y, d)srunu1onal. anJ a,01dablc Table 12-2 !>umm.,n,c.) 1hc 1ypcs or 1urno"cr llt,111'\(I

C ., ses of Voluntary Turnover

th• •~ 1 i: ~ hix,,c to leave organ11at1on, for many rca....on,. including how desirable rhc) belie, c

"'-"'-~nil \,ill t,c; anJ the cas.c "uh " h,ch 1hcy can dcpan 71 Unmet c, pccta11o~s oboul the JOb and l:J .1ni~Jlll'n al1oo h.·ad w d1ssallliifoc11on, " h,ch. rn rum, leads to tumo\'cr 7• Gl\ ing cand1da1c.) r:'"ii,u~ 10b prc , u:ws can reduce 1hc l1lcllhood of 1h1s occumng

71 If nn cmplo) cc's JOb _duues '"~

1 .,._\ri) defined ... or the pen.on 1s given unrcah.suc performance goals, dus can also rc~uh in

~,[ni.1r~ iurno,cr , J I n add1uon 10 being lured by other opportumue, _ 1h01 prov1di: more ch;'!(· Hm~ing "ori,. or career dc~clopmcnt opportun111cs, people al,o lcnvc JObs due 10 l~t p:iy and k .. ,"_.r,,,, a lac!,.. or n:cogmuon. not ha,mg their voice heard. or pc:n:c1,cd unfairness. Allhoug~ \ ~rJI ,tuJic.) tu,c ~ho,~n that poor pcrformcN arc more hlcly to quit 1tun good pcrformc'ii, ~ ~-~t rxrformcrs may also be more hkcly 10 lcLwc bccau..c they lun e bcncr opportunities.

1 A ,ul'CJ of 262 large U S. comp:1I11« ood • complementary >lll'C) of 1. 100 tOf)"pcrformmg ,r,,

1 l,}~•,:s found that employers and emplO)CC'- do not 3gn~c on the rca."lons le) talent .)tays "1th on

rl er ·s Although top emploi·ce< rcponcd pay ns one of the three primary renson, they leas can ~~r

1 ::cr, employers bcl1c,cd Lha1 promo110nal opponuni11cs .ind carccr dc\ clopmcnt \\ere the pn ·

~ f\.'J,on, It ~ccms lha1 "ha' emplo)ccs value :ind "hat employers think they ,alue dtffcr. lltc ,.J'~·, ,iho found th:it 86 percent of companies lh1nk they don good JOh or trcaung 1he1r employee<; .,II. ~ut only 55 pcrcent of cmploJCCS ogrcc Tobie 12-3 summan,cs the resul t, of the suncy and ,ucf' ..ornc m'.:!,1£ht as to how cmplO)Crs and cmplO)CCS thml d1ITcrcn1ly about the. s11uauon ll One "'c> foc1or related 10 voluntary tumo\'er 1~ lhc cum:nt economic cllm:ui: Although top

rtNTTl L'I" are usually being coun.cd by olhcr compamcs. ,rthe fX0nomy ,s good and Jobs arc plcnu• ~I. n. tJinmg employees bolh gooJ and bad 1s more dtfficuh. When 1hc econcxny 1s softer and k wcr

1 ,rfJ.nlf.JII\JO"l arc hinng. it 1,;; lurdcr f0r emplo)ce, 10 lc:1,c. and turnover rol~ we u5ua1ly lo\l.cr

Ana lyzing the Causes of Turnovl!r

rurn~1,ci 1, d1llicult 10 curb unless ) OU know precisely "hat 1s cau~mg 1t Because there arc so

11 JO\ ri:J~1,n'i, ,, h) people qu1L thrir Jobs. it can be helpful 10 conduct exit inlcnie" s 10 ask o,,c~a· ,M, r:.' ~·mpl0)CCs "hy they arc leaving These in1ervic" 'S help the company ncqu1 rc mfonn auon

1u :Jn be used to 1mpro, c the conditions or their current cmplo)'ccs and reduce f u1urc tumo, i:r Ti:~hnolog) can fac1 htatc 1hc exit interview process. Some comp:m1cs ha,c soft"o.rc rho.t c•ma1ls ;~~tr JcpJnmg employees and asks them to take onlinc exit anlC(' 1C\\~. The software allows i-J'1J:.:~r5 10 !ICC ho\\ many suncys have been completed, view I.he rim1·~ monthly :md yearly c, 11 , ;,lll~tlc~. and uncover the top reasons why employees h.11\'C left. 1l1c dcpw1ng employees ,JO Jl,o md uJ~ dctatkd comments fo r the rinn's man3gers 10 explore runhcr.

t/1:jijfij Types of Turnover Type of Turnover Description

'.''.::'..intary :urnover

"',o'.,,,tary turnover

F,.,,,c: anal turnover

D1s1unct or-al turnover

A,o dable turnover

Una,·01dable turnover

The employee chooses to leave due to personal or professional

reasons The employer in1t1ates the separation due to the employee's poor performance, m1scondua, a reorganization of the firm,

and so forth

The departure of a poor performer

The departure of an effective performer the company would have hked to retain

Turnover that the employer could have prevented

Turnover that the employer could not have prevented

t VA 1' 0//JA/ILE TUR.VOi'/;/!

twrnm rr an tm{'l">'r ruultl ""' hm r

ptrirnl(•tl

f;.ttT / ,\ 'TEIIV/E IVS

m1tn1r.,..s 111 i,.h,ch Jrparorrd tmpfo)rrl arr ruA..rd about 11 h} thrv urt lra,1111{ 1l1r firm TIit' gool 11 IQ '"llulfr tnfomwtwn thm ra,1 bt- u(td t,, 1mproH' 1l1r 1H.1rkrnJl r(mduw111 1,f tht firm J currtnt tm11lu)ttl

I

I

lfrj!J .. &• Wh t rf Y op-Pe orml ng Employees Luve Organizations Reuons

Perunuge of Top-Performing Percenuge of Employ.,. Employees' Responses Respons.e,

Pay 71

Promotion opportunity 45

33 68 Wori<-1,fe balance 26 25 Stress 24 8 Ca~er development 23 66 Health care beneht> 22 0 length of commute 18 4 Nature of wori< 18 8 Retirement benefits 17 2 Company culture 13 10

Relat1onsh1p w ith 8 31 supervisor/manager

Vot, The numbcn do not tout 10 I 00 pcn:-c.n1 brcau\C c.xh IC\pondrnt choM: 1hrtt n:-&SQM

Soctrr, Rcpruucd "' 1lh pcrmruion AU nghb rcscf\cd. Towcn \\mon ror mon: 1nfomuuon. \HII IOII,

com.Ap\all E.. -El.Ji ,...,lh lht Clic._ o(a \lou..c E.\.11 lncm)N• Go lt1ah T«h." S«;,r,/orU • .....,.;;-ltiOI. \lana-"""""'"'· Oaobcr 2006 . ........ uwm cq/hnJL/11brJ.r) f"ibtl~noftKX°~1S_Ol i960 ntlWfv

Exll 1n1crv1cw quc!!.llOM\ should be tar~c1cd at lhc arc:.s 1n whJch the orgaruw.ion ret1s

It can i mprove Be l-lnltcg1c, and ask qucsuon~ th:u "111 sohc11 useful infonnauon ~

including, "What arc ,ome things that >°" " ould do to fix problem, in the l'orkplaeer, -C.. you give u, the n:lmC> of tho,e you believe arc mvol\ed 1n cnminnl beha'1orT', nnd "Am !hat thmgs "e could h.l,c done to mal.e )OUrJob more fulfllhng?" can help the organ,uuon ru• lems nnd 1mpro1e the future htnng ofhencr-fit cand1da1c, ,o

Some orgnn11at1on, dc1elop formal polic,e, to manage ,olunttuy employee <eJ)llllioao

ond exu 1ntc"1C"S One of UPS's 37 pnnct pk, for managing 11s worlJorcc, descnlxd 18 •1-.ir policy book gl\en to IIS management team, pcnains to II< relo11onsh1ps "'ith former employees.

" \Ve arc cons1dcr:1tc or cmplo)ces \\ ho arc lca\ling us for wh.o.1cvcr rc~on We knov. dla& lhi:

goodl'tll and respect of former emplo) ecs can be benefietal 1n future rchwon<htps Al lbc dae

of an cmplo)cc's scparauon from the company, "e scd an opponuni1y to conduct a lrintlly d1scu,sion regarding both the ind1v1dual ' , and the company' s views. Such d1scuss1ons maypiw

out "'3) ~ 1n ..., h1ch ..., c could 1mpro\ c our "orl..mg environment or the company 1n general

It 1s sometimes bc:ncfic1nl to ,.a,1 before rnnducung cxu inte"te"'S. When l"'-l

Johnson intc" 1el'Cd people II 1den11ficd as regrettable lo,;c, from the orgnmullon 10 &Cl tap!

as to "'hY they left their Jobs, II learned tl1Jt people felt much freer to respond hones~y after a

measure of ume had pas,ed J&J learned that many of those former emplo}ccs' poor~

cauon "'th thetr supcr,1Sors did not allow them to understand how ,alucd they"= ,.uliadtr company. As a result of thosc d1scu»1on>. J&J rehired u 101 of its former employee<

12

Research suggests ~tat the former bosses of dcpa111ng cmplo)«> should not conduclaa interviews. cspcc1all) ,f they arc untrained in conducung them. Emplo)ecs MIi be rcl-lO

di sclose that poor supervision "as the reason for their departures, 1f this indeed 1s the cuo. Aho. their supcn,isors might sclccu,cly mt<rprct their ,oon-10-be,scparotcd emplo}ees' rt>polllCS tt

not honestly disclose "hat the emplo>ecs said.

Firms can do the fo llowing to 1mpro1c the -,1id11y of the infomiation they gath<r ,11cirt

mtcn1c..., s n

Hnvc rcpresenuu,cs from an out<ide compJny or from a neutral dcJ)ll\lll•n~ Aidt a

hum3n resour.:cs. collect the mfonnauon T rain the rntcrv1c"" cr, U;e a que,11onna1re that allo" s the firm 10 ,y,1ema11call) compare respondents' lftS1IGI.

Rather than tnlerv,ew,ng the scpar.tting emplo)ce during his or her last l'orktngd•)S.COII

~1dcr supplementing (or C\en rcpl:1c1ng) the c,ut antcrv1c"' wnh a post•CJtll qu~t1onn11re

Char,ccr I? • M:u,J~ing Workfortt flo\l,

\ ) \\C m.:nttoncd in an carhcrchoptcr. r.uhcr thnn SC\ cnng ucs ",th departing iop pcrfonncrs .

• ,nc i..llfll('Jnu'.', hJ\C done JUSt lhc opposite, m.1ung :1lumn1 nct\loorls fo r C'(•Cmplo)CC~ The

·,,,;ll-•f fomt Dain & Co. mines alumni relat1on<h1p, for <mplO)ee referrals The firm ha> fou nd

·~Jt IK'' h11\;:io :i.oun.rd through 115 alumni lend 10 be a bcncr fit wnh 1b culture and need~ 11nd

:l\-1U1-·nlh ,IJ) lonfcr than other employcrs M

Ln,rtmu Jot1sfact,011 sun t')S can help 10 1dtnufy problems and areas of Job dis.sausfac-

10,11 ,.,n I'< addressed and, with hope, prevent ndcht1onal tumO\er UPS regularly conducts

'.~" i irrl••i<< RclJIIOn> lndc~ Su"ey," "htch mea;ures employee sau,focuon onJ the climnte

dtl' llf'~,m11JllOn All tmployc-cs h:nc lhc opponunll) 10 mpond 3nOn)mou, ly. lhc results

lit ' ti.u-t."J "nh the entire organitauon, and UPS mod1fie:-, lb dcpanmcnial pracucc, and ovcrnll

U'Ji!"ll'~ dlorti, t,a~d on the fccdbacl 85

o,veloping Retention StrAtegies

\ \llti.~ }!h 1hc tumO\Cr of 1hc IO\\CSl· pcrformmg emrlo)ces can be bcncfic1:i.l, 10 :,uccc,~fully

rr-"nJ;,· tJknt Jn organ11auon.~anno1 focus solely on m 1op pe:rfonncr, Insurer A, 1va' s )lralegy

.r iranJgin~ "the \Ital many rather thnn ml ahenating the bull of ,ts " orlfort'e by focu,- ,; t,du,1HI) on currcnt high pcrfonncrs males this commumcnt cxplicu.

56 Research ha,;

l l~' ,.,,," n thJt top talent 1s "i~re cffec11H v. hcn II opcr:ucs in vibrant m1cmal ncl"- Orl ~ "-11.h

J Ji\Cr"C r.ing~• of co...,or~crs. Different things male proplc of different a~c~. gcndcl"\, and

1 ,_.11cinahtt1.·, mtl.'rt,tcd 1n working for and remaining

\\1th a company lA

1le1..Ju~ the reasons people stay wnh an employer ru-c often the same rc350n,; lhc)' ,1ocre

co.tct,-J 10 the company tn the first pince, 1mpro, 1ng employee retenuon "111 often make the ftm1

m,1n: JlU,11,.U\e to ne\\ U(')phcnnts. ln other \\ord,, ,r a firm IS SUCC'tiSful 31 Lecpang llS cmplo)eCS ui ,11~J Jnd rntducuvc. 11 ts also hkcly 10 have what it needs to uppcal 10 new tall!nt Aho, 1f the

r<I-''"'" of goru rcrformers incn:a,cs, fe"cr new reople need 10 hc hin-d When the tcchnolog) rnJui.h and ~•n1ces pro,1dcr CDW expcnel\C'Cd high IUfflO\Cr rntcs among 1lS account mMag-

,r, 1n 1lk.'1r lil"\1 I\\O )Cars, Lhc company dc\clopcd an c.uenSI\C nc\\ account manager onboanhng

..nJ uJ1ntng pro~ram After a daylong onent:1t1on focused on the company·~ values and goah. new

.),.,Nl'lt m.mJfe" rcc-:1\ e ,,x "'-CCks of tr:11n1ng. CDW 111§0 dc,elopcJ a lhrel ... mmu1c rca.h,uc Job

rr,:, i,'" ,1Jco 10 help potential cand1dJ.1es better undcr\tand the Job.1nc, 1dco sho\\ ca...;cs the finn'~

tum:n1 J..('('lunt managers and dcscnbc;; their rol('s, rcspons1b1hues. and "-orl.1ng en,,ronmcnt. The

, 1\1 , .. lln CDW' , careen homcpai,'C for po1cnual eand1da1ts to v1c\\ pnor to appl) mg onhnc. 19

\l1,;H•k1pmg a rctcnuon plan that addrt,')(S the ca.uses of turno\Cr can ,mpro, c the rctcn-

r1l,, ,11 ~nt1i..·.1I l'mplo)cc, and emplO)CCS m key positions. In Table 12-4, \\C ,ummari,c , omc

Jr "on rctl!nllon ,1rateg1cs lh,:n "- C d1~uss 1n more dc1a1I nc,t

CHALLENGING EMPLOYEES To successfully compete 1n the scm,conductor industry, Texas

ln•U\.lmt."nh need~ 1hc best und bnghtest cmplO) Ces. Ho\loc,c.r, 1op engineers arc: hard to find

lo MJ\1m11c lhc tttcntion of its cmplo)«S. lhc comp:lny tr.uns 11, managcn 10 cns3~C their

,;~ rJ,nJt<, 10 mo~c ,ure they arc challenged ond npprectoted. Manage" olso rcgul3tly eon-

,1.!~·r J .... 1~nmcnt changes for their emplo)ces 10 m:s.kc 1he best use of their skills. Nununng

.i·J rd,1·nmg their lop cmplo)ccs 1s 11 component of the performance rc,icws g1,cn to Texas

l,,c,1111cn1,, managers 90 Cross-training emplO)<cS cnn olso help them develop new sl1lls and

,.:Ju"'· 1hl·1r llnno\Cr

CLARIFYING PROMOTION PATHS Clear C3fCCr paths can also 11npro,e rctcnuon because

t m r~•l)l'1.', ('3n more c,1'-1ly ~cc 1whcrc 1hcar tune and cffons \\Ill tru..c them an 1hc compan) .

11 i.,, Ch ,P<Hk Mexican Gnll " • nted to reduce the turnol'cr of 11, hourly " orkers, it <C\'tsed

"'" nlr (\llh for i:ntf) -lc,cl cmplO)CCS and st3ftcd promoung more from \\ !than. lb tumo,cr

r \ I.II j , the company Mnl from filling onl) 20 percent of IIS manager poSiuons ,ntcmnlly

11• l1 ,m~ Ml pi.·rrcnt of 1b mJnagcriol posi11on.s from wnhm . 91 As one company rcprc,;cntau, c

' \l It p.XJ doo' 1 ha\c a career path that 1s clear. good people ,\ on' 1 " ant to '-lay w11h )OU

Pl rk \\ jnl 1,, lno" that their hard ..., ork 1s rc\\ nnJed, und they can nsccnd through lhc ranks and

lx~v,1"· J b1grcr 1ac1or m thc- company' s succcsl," 92

DEVELOPI NG BETTER SUPERVISORS Dc,cloptng better bosses can be one of the bc,t rctentton

n il'Jc-l'ntl'nl ,1ra1cg1c~. Supervi">ors huvc a cons1dcrnblc 1mpac1 on their ~ubonhna1c,· 1umo, e.r.

( r;.1•rn.; a d1111Jle of re~pcct, fa1mc,s. and trul l con po,;itivcly affect the morale of cmplo) cc1-,

341

~ I r )

i

' I

l42 C'lupi..-r I l • \I~!! \I orUon:c Ao"

JOB SHAR/\'C

an arnutct~nJ 111lwrrb, r-.a,,.-oplt 111ort1111,-lNr111[,flont)Ob

art CUT01tttmLlll that uJ/Utt-J tmp/O)tU

to III ort #wvn otlra 1N»I a f)p1cal ,,,1t1 ltotlr UUft

TEJ.ECO\t.11~7/\C

an a,ran,:trMnl III htrtb)' tmplm ttt

111ortjro,.. u loca:,a,,0Wrdtan1M1r

t'"('lo\f't 1 /aralmt1 rw.li cu 1h,1r

"""'"

l4i:jf jfli Rete ntion St rait egles O•nfyin9 promotion parns A clear carter path helps reta n talented people .,,e

movmg up " Sttd •"

Cht11/eng1n9 employees Develop,ng sk,lls and learning new things can keep emp1

eng•ged oy.ts

~velopmg better s1.1~rv,sors Fiw managers y.,hose subord n,tes trust th.,,.. C.n employee retention rnp,o,.,,

G,vmg employees work flexibil,ry G1v1n9 employees work flel(Jb1l,ty can improve th retention by enabling them to better balance their "'or\ and life demands e.r

Choosmg a good locar,or, Locat ng the company ,n a dMmtble a rea or 1n an irwa w th

compemors for the same talent c.n boost rete nt on f-..

Prov,d,ng compet1t1ve wages and benefits G,v,ng employees compet1t1ve p ay Ind bet-, help improve retent,on tf

1ts

Holding managers accounrt1ble Hold,ng managers accountable for reta ining t0p P«rf

and for challenging and developing their subordinat es can -mprove the1r retention or.it'\

Prov,d,ng Employees with Support- Staying 1n touch with new hires and help ing them

overcome the obstacles they face to perform well can result tn their retention

Cre•Mg mob,1,ty b,mers Embed d ng employees .n tht company ,n such • woy !hot the vafue 1s greater 1ns1de than ovt.s•de the firm due to their f1rm-spec1f1c knowledge dKrei r

the chance that they will leave st,

Creaong a strong corporar~ cu/fl.t,.e Creanng a strong culture that employees f nd lttfla.

can enh ance th~r commitment to the company ____ ,. -- reduce lhear stre~. mcrr.1SC their comm11mcn1 to the org:1n1l.3uon and their i upcniwn -1

1mpro, c their perfonnancc 91 h can also lo" er a rinn '> cmploi ment hab1hty- EmplO)«.. • ho

arc treated "ell arc less hkcl) 10 sue their companies

GIVING EMPlOYEES WORK FLEXIBILITY G1\lng cmploJ ees " Ork Oe\lb1l11y e.in lllsoimpn,.c

their ret<nUon. Ahcmau, c JOh :irrangcmcnt> con help them better balance Lhc,r '"" and lht,r

work. One type of flexible orran~e mcnt ,s job s ha ring Job sh:mng occurs when ,.,0 or rnor.

peo ple rill one JOb. Eoch person has a pcnnJn<nl parH1111c pos111on, and they ,pill lhc hour,

pay. hohda) s, and hcne rits hct"cen them accoru,ng 10 how many hours they caeh ,.orl. n,; Job responsib,hucs can also he ,pht into , .. o different Job, For e,amplc, caeh person might be

re,ponsiblc for different d1cnL< or complcicly different tasks, or employees might , hare ll>h and rcspons1b1hucs and coordinate the ,\ ark dl1ne bcl\l.Ccn them

Flu:time pro\1dcs an allcrnauvc 10 the 1yp1cal ninc-h>-fi, c " ork schedule Flatu"IC

employees may " orl four JO.hour days. " orl a " cclcnd day in,1cad of a "cclday, or Lakt 1 shoner lunch so they can lcn, c " ark car her. For u company :i.uch a~ 3 call center, Oc,umc ca11

enable the firm 10 keep the " orl plJCe open for nn extended penod c><ry day, say 6 o m. to 7 p"'

10 bener sen,e ihetr cus1omcrs Tele<:ommuting ,s on nrrangcmcnt whereby emplo)ecs " orl from a locauon other ih.ia

lhc1r employer's fac1l111cs. s uch us their homes In ")me cases. tell-commuting cmploym \\10

.... arL nl lhc cmplo)cr's facill11c, for part or 1hc "ccL nnd fro m thc1t homes or other loc1tk 1ni

the rest of 1hc v. cek In other c.1._~s. lhc tclcrommuung cmplo)« nc\C:r " 0t'L.s at the cmplo)cr 1

locauon. Man) people need more Ocxible " orl hours so Ihm 1hcy have umc 10 ancnd to tt<ir

children. aging parents. or take classes. for c,amplc I hgh-qual11y rccruils who arc unable IO

"ork trnd,oonol schedu les oflcn rind OeA1ble " orl hours ,cry a11ractl\C

In add1uon to reducing turno , er and lhc com n:lated 10 II. tclecommuung (also call<ll

lromtsourc,ng when an cmplo)CC \\ Orks cnurcly from home) can generate C'O\I \3\-1nr 11 at

emploier needs less office space a, a resul1. Companies including J Crew, Office Depot. S-.

Medco Health Soluuons. and AAA use homc;oureed cmptoiecs. Jclll lue annuall) wim 01tr

S2,CXX> per cmplO)CC in rcnl C'O\lS by homcsourcmg llli entire rc~cnauon s1nff 94 lbe firm

cnJoys a 3.5 percent 1umo"cr ralc among 11\ 1,000 rc,crvatton cmployrcs comp..u"Cd ,utb ilD

1ndu\try a,crage of 65 percent Because tumO\Cr co,1\ amount 10 :ibout 30 pcrccnl of a rc:,cr•

,auon agent's -,alaf), these rclenuon ratc'l hJ, e haJ J t,1~ 1mpac1 on Jr1Bluc 's bonom lme:"

Ch.tplcr I 2 • i\l.inJi,?lni: \\ orLforcc F11,""

nc 1',101 , the compan) ' ) annual turnO\cr CO\lS '-'Crc: JUSI 6 percent of the coo.;cs c,pcncnc..cd

11 \""'·""""' ·or JUSI $327,600 compared to the 1ndu,1ry a, cragc of S6,08~.ooo•..,

"' ~ 'fl'\~,~m111ut1ng can GJso 1mpro,e the producti\'Hy of cmplO)CC'S if II mll.cs them more

' "" ,.,,h their JObs Jc1Dluc'$ a1-homc n:scm1uonms an: JO perccnl more produm•c on

•:,r-,1i:~·, \\hh.h nu ~c~ 1t more viable for JetBlue to htrc domc~trc workers for ihc pos,uon, r.uhcr J µ_l'l l:u1~ ... ur(in~ lhc JObs to IO\\Cr labor-cost countn,1· Cu.s1omcrs conuicung the rcscf'\at1 on1o.;~

,t, p<ncn,c fc"cr longuogc bamcrs this "•Y In far~ Jclllluc rccrncs onl) o ne com• .1h ' i:~~ '-''.:I') J00.000 n:.scrH1t1on calls m:kle co the company-an 1nduvni best llus h:B

Jin! u bl f -, ~uJ frt llluc u considcrn c nmoun.1 o money v.hcn you con~1dcr the foc i that n cosls )IX umcs

f\; 111 gJlll .1 new customer than H docs to rtt:un an old one 98 To combat the 1.~la11on 1ha 1

" .,., _,,0 ,-cJ worLcrs can fee l, the company has dc,ctopcd sc, cral mea,un,, All homc>OUrecd

"- . 11.-,0 Jgcn1, mu~• come into JctBluc's regional orftccs in S:.h Lale CH) for 3 nunimum of

l\~~uo C'ach month, which nllo\\ S them to 1ntcrac1 with lht1r fellow employees and w11h man-

l'Ur •nt Workc~ arc also kept up-l<HJatc w1lh the most rcetnt C\Cnts occumng at JetBlue w ~;, '11~

HoOSING A GOOD LOCATION Locating neor companies that employ s1m1lor talent can be

' 1

.~,_· For e,amplc. a 1cchnology company 1n S1beon Valley will likely be able 10 more cost ly :;,'.re the tJlcnt II need, than if the rinn were locotcd in. for cxwnple, Forgo. Nonh Dal ota Tl'~ ru~ibl(' high lUmO\Cr nuc g1,·cn the case v. 1lh ""h1ch employees can ~'-'Heh cmplO)C~ c4J\

~ p Lc<P 3 1,nn·s ideas frc>h, too. Ho .. ever. as we cxpllllncd earlier in the book. the same h,gh

i .. m'1\t.'r rJt~ could compromise a rcscru'C'h and development company that needs employee) to

. "" .. orlin~ on proJCCIS for a long umc. Also, there arc clearly ethical and strutegic 1s,uc,

'.'.,,.,unJ,n£ the .. poaching .. of cmplo)ccs from other orgaruuuons. Morro,er, ,f iou poach

,mrlo) CC' from other employers. you must be prepared, in tum, to he pooched from !

I ,tJhh,h1ng a separate long•tcnn research facilny 10 a locouon where the skills of the team

~ noa 111 J.\ high demand, such as a rural communily, can increase emplO)'CC rctenuon r.uc s.

•.ll""fh, .., ~e ind1co1cd, initially attncling c:andida1cs can somc1imcs be more challenging.

H~•~c":r, the 'J,lrategy \li Orktd for the scm1conductorcompany Intcrs1I. When 1he turno,cr r:uc

II'' the ~nuconductor industry for a whole was Ill 20 percent, the 1umovc.r at In1crs11's scm,-

·""""'"r 1a.:1hty in rural Pennsylvania aver.igcd only 2 perccnL l(JO Also,.._,"' explained 1n ( ••Pl" 6. "h<:n GE had trouble finc!Jng people" ilhng to move to - ~ Enc. Penns) lvania. ..

w ~omp.m) hcgon rccnuung Junior miluary officers. Pre,•1ously used 10 sltlmg 1n foxholes, u",r cmrlo) CC'i lound Eric less or a limitation.

101

PROVIDING COMPETITIVE WAGES ANO BENEFITS Compe11uvc pay ond benefits ... Ill help

,,, .. 1 , nJ l\:tain employees, of course. Hol'.evcr, even 1f a compan) has good bcncri ts, 1f employ-

'" d,•nt onJmtand or opprcci•te those bencrits, lhen lhe benefi ts arc unhlcly to affect their

"~"' ,n ,\n onJl)>1S by the cons ulting finn Watson Wyau found that companies that offer n ch

t,c11d ih t"iut hJ\C poor commun1c:u1on pntct1ccs h3d an DVtl'llgc tumo,•cr rote for top-performing

,-pl,,.n , nf 17 perecm Companies that offcrtd less costly benefits but successfully communi•

l,,•i:J 1lw111 h.1d an a\ cragr top taknt tumo,,cr rate of 12 percent The best si1uation. combining

r ,1 1\;ncfot, anJ cffceu,cly cxpl1Uning them 10 cmplO)CCS, was assoc:1otcd "llh an even lower

, p.~,nt 1urn,l\er rote for top performcrs.'ll! A pay-for-perfonnoncc plan can also help n:ducc

ti': 1urn11,cr of 1up rcrfonncrs ond unprovc the company's return on \\ hat ii pa) S cmplo)ccs IOJ

C JJlllJI One bchc, C(i that excculing its business stnucgy neccssitalc\ hmng the bc~t

1 "' To h<lp altract and retain ihJt talent, the company dc\'clopcd an c.ien,i,e "'orl-hfc pro-

t'" /11 Profr.1111' ranging from concierge SCf"\1Ces and fit ness centers to child care sub, 1d1cs and

J -..11\lUIL·J tll'kc-t sale!> reduce 11rcs, Bnd save employees' lime. The company tro.cks 1hc uo.;agc

nl ~.,Lh \\lltl- hfc ticncfit nnd conducts a cost-benefit analysis of all such miti:iuvcs 10 1dcnufy

'-' Ln .in: hJ, 111~ 1hc nlO\t 1mP3Cl on the comp.:my's goals. Emplo)ccs arc also SUI\C) 1,. 0d t\\tcc

1 )'-" Jh(lut h,,,. the) feel nbout lh<ir "' orkspaccs-fur c.ample. how they feel •bout the hght-

1n.;, llmc11on11!11), pmacy, cleanlmc,(, con\'cmenccs. food services, break foc1h11cs, rccrcntton

f.-. 11.u~,. and mecung spaces they U\C The bank believes 1hat "- Orking on the ,~sues 1dcn11ficd

~. 1 1'"~ , u,,i:) hdp, 11 reuun i:mplO)CCS

1°'

HOLOING MANAG ERS ACCOUNTABLE Rc\\llrding mnoagcr, ond holding ihcm :iccoun1ablc

lrir ·~i.un1n1 top pcrfomtc~ and en,unng. 1hat their subord inates ha,c clear, con,1,1~ ntl)

343

I ◄ I

344 Ch.ipc,,- 1 ~ • \l anag,ng Work.force Flo"

.110 B/UTY BARIUERS

/OCUH'J WU tNJU u hortkr /tJr a,y,lo,~rJ to ka\ t an orga111:1mon

mon,to~ professional growth plans , .. 11 increase 1he chllnccs that the m••a in these bch • Des ~, gcr<, v.111

av,ors. 1gn1ng re1enuon lnunmg for managers can improve their ab,ht '"&Ice good pcrfonncrs, too. Remember, however, that re1ain1ng top pcrfonncrs ,s n<>1 ~Lo"~ ll!lruning poor pcrfonners, 11ohich CM ac1uolly cost a company money.

1 ~-

. When Deloitte wanted to reduce aunuon among 1ts high pcrfonners, 11 learned "-'tit survey data that lock of nexob,hty was the number one reason women were lea,,n from Ila pany and the number two reason for men llus "'a, dcsp11e the fact that Deloitte had

6 t ~ can,

Oe,uble work lllTllllgcments ranging from telecommuting to compressed i.orhecl, •ffcrtn1 replaced the fleJUble work orrangemen1s "11h a "ork cus1omizauon program that llllo11os ~l0t11t ecs to ask their m11nagers to pcnod,cally "dial up" or "dial down" their careers based mrlO). pace. workload, locouon/schedule, and role. Although nol all requests can be appro,;n ~ of three requests have been 10 dial down . and employee sausfocuon w,th "overall care, n'7 0lll ,nc:rca.<ed by 25 percent as turnover fell. 1111 ' 1 • fi1•

PROVIDING EMPLOYEES WITH SUPPOIIT Helping employees balance lheir lloOrk lnd lht, lives can ,mprove the11 rctcnuon. The Mamou Corporauon hotel chain has been 11n 111d r leo.der m reducing employee turnover. Through its Pathways 10 Independence program, M: tnuns welfare rec1p1ents for the workforce. In some locauons. Pathways alumni arc 50 ~ less h.kcly lo quit than the average employee. The program's unique StrUcturc combines uwa.,J 11nd external suppon for the company's welfare-10-work employees. Marriott' s supervisors h<I employees manoge their g:-ofcss,onal lives, while Marnolt "case workers" help emplo>ce. ra.:. age thc11 personal lives. 1

Sones111 Ho1cls, a fam ily-run chain of 18 propcnies, developed a fonnal P'°lhrn 10

acclima1c new hires throughou1 1he11 first 100 days on the JOb. The main goal 15 10 ..._,1 employees on the11 30-, 60-, and 90-day annl\crsancs. Al 30 days, the human resources d1ttc. 101 s11s down with new employees 10 check 1f their ex pee muons are being met and 11ohether they have al l the tools they need to pcrfonn their work. Al 60 days, • second orientnbon called lhc "Booster" is given with a focus on dc>elop,ng 1he employees' commumcouon and service slalls. Fcedbl!ck 1s sohc11ed about the emplo) ccs' training, and the new employees are 111lcd '4bat eht 1hey aced to be successful. Al 90 days. the new employees fomially mce1 w11h !heir managers 10 set join! goals for the rest of the )'CM. 1°' CREATING MOBILITY BARRIERS Mobility barriers arc fac1ors lhat make II halller for u employee 10 leave an orgamuiuon. Mob1l11y barriers can include s1ock op11ons tha1 \Cit '" the fu1ure, requiring employees 10 stay with lhc company to rccCl\'e their full fiD11Dc1al Yaluc. extensive trammg 1n a company' s procc~cs and procedures 1h1.1t ure unique to that company, or desirable work a1tnbu1es 1ha1 compcung emplo)ers lack. Mob1h1y homers other lhJn financial incentives to stay, which can somcumes be ma1chcd by o ther organ11a11ons. embed cmplO)ct> an the company in such a way that 1hc-1r value 1s greater 1n-,1Jc llum outside 1hc rinn due lo firm- spec,fic knowledge. If 1he pcrccl\ed cos1 of leaving 1s grca1cr 1han lhe expccled gain of jou11ng1 differenl orgamui1ion due 10 o person's comm1tmen110 h1S or her wo,L group, 1com, orcompony, he or she is less likely 10 resign. ll)8

CREATING A STRONG CORPORATE CULTURE If a company IS able to Cr<Jle a >troog cuhur, thal employees find a11mcuvc, 11 con enhance employees' commitmen1 <o the comP3ny Companies like the outdoor clothing and cqu1pmcn1 company Pa1agonio, "hose gool 11 to pro- duce the lughcst-quahry products while doing the lca,1 possible hann 10 ~le environmenl, ha1e dc,elopcd values-based m1ss1on s1a1cmen1s that appeal 10 rccruilS ond emplo)cc, ahlc The oppeal of the corporate cuh urc helps rcia1n employees with similar values. '

09

Merge rs and Acquisitions

Retaining key employees dunng a merger or acqu1 s111on and in1cgra1ing those employees 1•10

the company is critical if lhc new organi,a1ion is 10 succeed. One way to unpro,e lhe retenuoo of imponant employees is to create financial agreements with key 1alen1 thal serve as goldt11 handcuffs tha1 crca1c mobilily bamcrs for them. As we JU<l explained, financial incenu,e Jl3Cl- noe'i such as rc1ent10n bonu.se~ or c;1ock opuons 1h:1t mature O'-'Cr 111nc, can help the firm rcuia 11~ c~~nual cmplO)CCS :ind incrcalic Lhc1r commumcnt to making a merger succc!,s(ul. To lctp

Ch,picr 12 • Managing Workforce Flo" 345

, ln.'m lt;J\ int: prematurely. com~me~ Bbo somcumcs increase the ,,a.Jue of the scvcrnn1,.·c ~',: ;J~l, thi:) offer " orktf'\ "ho stay until a merger or acqul\tUon is completed. These types of ·.,_,,. 11,cnl> ar< l)ptColly formol llcd '"a wnucn contrn~t 1h01 S('<c1fics lhc financial inccnuve,

; JI ibL' cmrlo) CC "ill rt."('(tvc ,r ht or she sta}'s wuh the company for a specified lime ~krgl'~ Jnd acqu1~1uons crratc a lot of Joh unccrta1n1y for cmplO)CCS-.lnd top pe:rfom1•

,.11,.0 11,,c 01hcr JOb opponunuies Consequently, ll 1> 11nponan11h01 1hc cmplO)CI clcarl) '~

1 ,r11un1l,1tc- \\llh employee s aboui Lhcir fu1urc Y.•1th Lhc company- what lhc1r Jobs will entail.

:, i ,·r\' thl') "tll ~ locaicd. and so fonh, a.s.;umrng lh1~ mfonnauon 1s knoy, n Mnny companies .. r,•JI: ,r-•1. 1Jl rc-tcnuon $lrotcgics for their key personnel dunng mergers and acqu1s11.ions

r,unaging succession

,, , riu l..:Jrnc-d in ChJptcr 10, !>ucccs.s1on manascmcnt plans for Lhc replacement of employee~ ~c:, P",111on~ and creates a Htknt pipeline in 1hc company There arc some posal.lons in almost

' -~ , omr••> that arc ,cry costly 10 lhc orgon,zotion 1f left unfilled. These posiuon, arc often :;;hl' \'.\C"\lu,c lc\•CI. hut olhcr po~itions arc often ~11t1cal :is well . In smaller orgamz,auons, o~c ~ \,n nu~hl ~ key to lhc performance of an entire unn. This 1s often true for researchers rn f r-,, ru"u1ng an mno\aUon strulcgy. but can be true for companies purswng O customer mti• nn .. ~ .. trJtt'fY a~ \\ CII If the employee responsible for managing an imponnnt customer lta\'CS, ,!l( d1:nr.1n) ' ,;; rclauon~h1p "1th tJ1a1 cus1omer m1gh1 dctcrioralc. " \ )obilily policies d1cta1c how people can mo,·e bcl\\ecn jobs withm an organ1uiuon. MOBIi.in ' POUC/ £S \ mL1Pihl) ~hey ,hould cl~.1rly state both employees' and supervisors• rcspons1b1hlics for pol1c1ntluud1<1oulwwptuplt ·m'"hi)C'~ Jl~,clopmcnl On the one hand, employees might be responsible for 1dcnufy1ng the ,an mo,t btnu·tn)nbs ·,1i,hln an :, 11

1 n1ng prl'frJrns th..:y need to enroll in to qualif )' for promotions nnd request thot lhcir supervisors urgamJ-

111011

q iC llk' lll umc awa) from their Jobs to complc1c tJus training. On lhc other hand, supervisors ~.,~1 Ji< n,,pon,1hle for regularly coaching and providing feedback 10 their subordina1cs, provid- ir; a,~ urJtl! ~~c,,mcnts of their readiness to be tnuncd and promoted, and helping them use and r,;,h" Jc, d op 1he si-ill, they acquired dunng their trairung. Mobillly policies also clearly docu- 11,ni 1h.: rule< surrounding the posti ng of job openings, lhc eligibility qu11hfications for Jobs, and ,h< .-•mi><n,Jllon and hcnefi1s n,socilllcd with them. Mobillly policies should be well developed, , \·,•I) " "nmumcmcd, and pcr<e1vcd as fair by employees. Not every employee who desires a rnm1,lUC'n or,, 1\hcs to transfer to a different position will be able to do so. But if lhe process used w Jl1w111nc ,, ho docs and docs no1 ge l promoted is perceived to be fair, those who arcn'1 able ll' J,, ,,, "111 r~el less an1mos11y 10Y.ard the organization and be more willing to remain v. 1th 11.

Redeploying Talent

11 .,Morc • rcdcploymcnl involves moving employees 10 olhcr parts of lhc company or 10 olher ll'ORKFORC£ RED£PLOl'M £ ,\'T ,,1'1, the .,·ompan) needs filled. \ Vorkforcc redeployment applies lhe supply•chain managcmcnl 1110 11111 tmpfoyuJ ro othu fHJfU ,,J1ht rnii~ ir k, u)r<l to opum1;,c inventory management, planning, and production to optinuze the company or ro urhu 1ob1 L'1htJ:u1n ol a lirm's employees. For firms trying to muimitc the efficiency of Lhcir work- 1· ,, , \\ lui.:h ,, p.1r11cularly imponant for companies pursuing low•cosl strategics, optinuzing ~,.1r \H11 l forcc~ 1s criucnJ .

IIJ\J', Worl fon:c Management Initiative borrows many of lhe same concepts of supply- ,,, n nuna~emcnl, such as capacity planning, supply and demand planning, and sourcing. To '"' 1, < 100.000 global employees and about as many subcontractors in its Global Services , ,1,1o•n, 1hc r.rm built n strUclurc that outlines lhe company's in1cmol and external skills and ",, 1J,,, rc•l-111ne view of IBM' s labor-supply-chain activities. The sys1cm co1alogs cmploy- ~t· • ,lrlk crca11ng common descriptors around what people do, what lhcir competencies are, ,nJ "h.,1 c,rcncnccs and references they bave.110 One globol pharmnccutical company u<es a l.,t-.-r ,uppl) chain 10 belier catalog i1s own employees' talcnis to helgi1 make belier decisions J~11.1t \,he n 1n use. 11s ow n employees and when to call in contractors.

H,"lcll-Packard uses workforce redcploymcnl lo pro,•ide employees some measure of ,mp ')men1 ,ccunly. When the company hod 400 surplus workers al its LO\cland,_ Colorado. 1,, 1li1i ,1flcr closing us fabrication dh·ision, ii redeployed maqy of lhci:i 10 other locnuons '"""n 1 ~: rq:mn. loJncd ~mployecs to other divisions '"~th shon -tcnn hmng needs, and pemllllcd '7 pl")Cc, 10 he rcclas>1r.cd lo lower pay levels an~ acccpl other jobs if 1

t~:"Y chose 10. As a " ' u'1. lhe company retai ned more th•n 50 pcrtcnl of its surplus cmplo)ces.

I

I ~ I

346 ~er 12 • \l::uug,ng \\ orlfon..~ Flow

DOU \SIZJ\ C

INVOLUNTARY EMPLOYEE SEPARATIONS

ln...-~lunlary employee ~paruuon') arc me, it.able DowM1nng ond tc nn mos, common rc.~o ns ro .. m,otunt:ll') cmplO)CC ~P31Ut1ons. \Ve d1\C lniUJon, ~ t"'o of u .... us, each nc,1 ... Downsizing

Oownslz.ing '' the process of permanently n.-ducmi lhc number or a firm• impro, c the efficiency or cfToct.1,cncs'II, or the finn Ill Do" nsi11ng u; a s ~mplO)t'C'\ IO II &o

zaoons to 3 Ucmp1 10 1mpro,c their Oe.x1b1h1) by reduc ing Lhc,r bu.re~= a,-"">' for ora...., cmplO)«:s \\ho have been rcuuncd by the firm the po"er to make Jee' Uc !.U'Ucturt1 lf"1ta impro,mg commumcallon " •thin the fim1 A do"nsiz.mg c.an also .:•:ns more <ll.Utk))' lbd

merger o r :icqut4-U.1on . revenue or marl..ct•Sha.rc loss techno logical and 0 ': '" rcsJ')On\c to 1

rcMructunng. on<l inaccurate labor-dcmond forccasun~. 11 • tn UStnaJ Chin1e, 1 Labor costs o.rc a large pan of man y firms' expenses. Thus, pnvatc•scc-torcm

downsize to ~duce their C'OSL<i, ma..\1m11c the returns thclf shareholders PIO)Cf\onc-.

pcuuvc man tnCT'Ca.',ingly globJI ccono m ) Pubhc-scc1or downs i.11nes =.• and to "°rt\ain CO.. logical tmpru, cmcnb aJlow fc" cr " o rl,.ct"\ 10 do the same amo un1 of 'A-Ofk or ~r "hen lo;:IJeo. reduce their o pcrallng budgcb 11, n go-.crn~

TYPES OF DOWNSIZING If the: choice of "hach employees to do"nsizc I!, not 3 collccuvc barg aining :lgn"Cmcnt (whic h u,ually manda.tcs that unio n members ":.~":cncd b) scmonty be re tamed), there arc ~\-cral "ay!, 10 c hoose who 10 target i n a do""nsazio "'°" t/Jt" board down,umg require~ all or 3 comp:my ' s units 10 reduce their headcount by t:''°J.J percentage. Grogropl11c do"nsuing targets speci fic locauons for cmplo)t:c rcducu ~

due to the lo"s o f an important CU!,tomcr Bu.1mrss-ba.st'd d owns izing wgcts only 0 ::.._.~

mcnts of a business. ln add111 o n, do"'n\111ng can target s pecific fun, t,ons or ckpann,c KJ- nccd to be rc-duced, or ~pcc1fic poimoru or Jobs that arc o vc:nt11ffcd. Pe,fonnanu-baudn:, Ow

s11mg targets poor pc:rfo nncN \Vhcn do 1o1. n.s111ng 1s stmon ty baud, the last people hntd "".,: the fin. t people le l go II co!>t cu1uns " a goal of the downsii ing, salary-baud downsi1.1ng cu

help 3 firm reach th1, gOJI This mc1hod ln\'Olves wgcung a fim1's most h1ghly paid emplO)tn

Compett,icy-bastd do 1,1,,n-.1nng 1n..,ol-. cs reuuning emplo yees with the compclcncics lhe compu)

c~pccts to need 1n the future and do""n'-111n~ emplo) ces "'ho l:,ck them. Do"ns1Ling can also be

done through srlf-sdu1,on. 1f a finn offers 1b e mplO)CCS inducements to lu-.c, Mathai, e.1.)

rcurcmcnt packag~ or buyouts T able 12-5 .!,Ummanzes thes e d o wnsizing targeting mclhod,.

Firm!, need to fully plan thc:1r do1,1,,n.!,utng cffons 1f they "Ant to reduce the related n(&ib\t

con ~ quencc s that can occur. A do "" m,1,mg bcm:h marking s tudy 1dcnt1fied sc, en t)ptcal do-.a-

,;,171ng activ111cs, ench o f \loh 1ch m u\l be planned for: 116

1. Conducting a v.,ork.forcc demographic .. rc\'1cw includ ing an b~ssment of the a,c,di\(f s 1ty, a nd s lo.Jlls of the " orLforce a._11 "" e ll ~ a p roJCCtJOn of the number or cmplO)ttl expected 10 resig n. be tcnnin:ucd, o r rel.Ire

2. A.5,;,c.ssmg the finn ' 11 allcmau-.,c!, 1u do"n~wng, including 1mplemcnt.ing II hinns frtt1t 3.tld offenng emplo)'ces bu}OUlS, early retirement, retrai ning. and rt'loco.llon p.:acLaa(s

J. Outlining the number of cmplo)ce, s lated to be do\lon\11c:d per month. )e.V, loca11on

bus iness unit, dcpan.mc n1. a nd occupa tion 4. Conducung the d o wns11..mi; o r rcduc uo n in force. 5. Prov1dmg cnrccr tran.!,1t1onlJoh plJccmcnl assis tance 10 scpar.11ed emplo) ces 6. Providing D!,S1stancc for the firm's remaining employees 7. En§unng that nn adcqualc n::tr.un ing p rogram 1s in plJcc:.

UNINTENDED OUTCOMES OF DOWNSIZIN G Fmm, o flen c xpcnencc umn1cndcd OUlCOfflC1 of do"'ns17mg including the \Olunt.ar) 1urno,er of their most ,aluablc c mplO)CCS, efficiency kh~"

and the greater eo,t nnd d1fliculty or hmng new emplO)CCS nnd Lraining them 1:umd • dov.-ns111nt

cffon Lower morale and a lack o f m01 11;at1on amo ng a firm· ~ employees can become ptf"\'&)l'\C,

JS can 1n1.rca\Cd employee ab-.cntcc1,;,m, 1!.lrC\S, a nd unceruunty, In pan.icuh1r, comp.tnl(\ occd 10 JckJre!,!, wn II o ,. J) ndromr, or the cmouonal effects t..hc d ownsiz.i ng has o n cmplO)CC.S "'"ho arc bcrng rctJinc<l 111c emotional afte reffects these cmplo)cc~ cxpcncnce include rear, at1gcr,

Ch;iptc-r 12 • M .in:i1ing Worl.forcc A o~ 347

£tJ! ., Jr,. Downsizing Targeti"lil Methods r,rgeti"g Method 0.s-cription

:. ,c,;s tht board All YNts reduce th eir h eadcount by the u m• percentage

,:!:,,,..,.1z ng

..,t,:ig'•pt' c downs1z1ng

; J) ess. b ased .j)M''i l •"'9

~c~. or b ased o:,.,.,sz ng

r ;"'1 en-based :i.:>,.,'"'S l ng

p~-'crT'!'lance-based :,:.., .. SZ ng

s, or'"Y b•sed OC-"" l "'9

)J ""' oasN:i co,· . .,~ zing '"Al"'";)ttency-based

d: , .. ·i l ·"9

(. · s• e:1.,0,, .,:,•,"IS1Z•,,9

Specific loations are targeted for downsilln g

Only some segme nts of the bus.nHs are tugeted (e g , employees associ•ted ~,h one product liM)

Specif,c Jobs are 1·argeted (e g , accountants or salespeople)

Spec,fic functions a re t.rget~ (e g , the firm's human resources department m 19h1 be downsized), usually dunng an org1n1zat1ona1 redesign

Poor performe~ a.re targeted for sep1ratJon

The last people hired are the first downs1zed

The most highly paid employees are ta rgeted

Employees with the competencies the company e111,pects to n eed In the future are reta,ned, arid employees without th01e competencies are targeted

The firm encourages e mployees to self.-select out of the company by offenng them inducements, $1.lch as buyouts or early retirement packages

1,..;\UJ.olll, Jn, 1ct), a nd m1:,Lr\bt, which can threaten an organi,..ation•s very ~Uf"\ 1,•al. Suf"\ ivon,

dt~n 1~d i;,uhy about retaining their jobs and nrc preoccupi ed by feo.rs or runhc, layoffs."' nu, ~Jn 1n,:n·~1,c the chances thnt they will qu11, be less c:ommmed 10 the firm, and be le~

1\,1H~- th.11 1,. le~ v.1lhng 10 go out or lhelf ""Y 10 hel p the company v. ork to"iutl 1t~ long- itml ~llJI, 118

l h..· ~\id~ncc regarding how ID)offs tiffcc1 sun,1v~• actual producu,•uy 1s mixed. Some

~•uJ ,·, ,u~~c,t that cmplo)ecs who ha.vc been n:uuncd -... ork harder as a rc!,ult or "su.rvh or's l'"1 1. 114 Oth~r :,lud,c, ,ugges1 that survivors red s o insecure that their produc11v1ty fall~

1 !O

o .: , n.J) l'r 130emg employees d uring 3 dcc.3dc when the company laid off tens or thousand, t ~ 111rll1) ~~, ri-iund that 1hc laid o ff employc:cs were less depressed and drunk less than those

,.1, . 11..111J1ncJ Emplo) ccs who experienced survivor's guilt and lhe strcs..lii o r not kno wing ,r the)'

1 I.I ~ nnt c-.:pcncnced the -... orst stress Ill l h· ,aluc o r a fi rm's )hares c:in also fall dunng 11 downsiz.ing, and ils rcput:111on ns an

l r: -,u 1.. • .m ,uflcr A ~ a rc~ull, firms oficn ho-.e to pay higher wages to attract top 1alcn1 ~11,r llk.·v do ~n,11c I!~ In add1uon. when II company's scpar.ucd ernplO)CCS take 3dvan1age or u•,, r\;) 111cn1 m,uruncc, 1hc firm's futu re premiums nsc. Also. the emplo)er' 11 costs for Job r .. ,111~111 ,1..·r. 11.:cs, c areer and r~sum~ coachm~. and ~kills 1.r3.1nmg designed 10 assis t sc:pa.ratcd ('"1i-1, \l.'n n,c, 1ltc co,b o f downsui ng include

• Ou1pl.11..~mcn1 )Cr,,1ccs (Job training, job pl:,ccmcnt SCf"\•1ces, and career roaches for do,-. n-

,1h J ~mplO)C:C, )

• 111~-h~·r uncmploymen1 msur.incc pn::m1ums in fut ure periods • , , \Cfancc p:iy • l'J\ fvr a.:cumulatcd hut untal..cn cm plO)Ce ... xa11on time • 11~ 1..0,1~ rclatcJ 10 hinng and lrllinmg foturc replacement employees • ll 1i:h~r , t.1ffins co,t, d ue 10 a less des1rublc pos1ta}orf or postdownsmng employer image

I hctc 1, no ton\ incing evidence 1hat downsizing leads 10 long-1crm, s uperior orga n11a- t111l'IJI f'rlunn.incc or e nhanced shareholder valuc.113 Then:: arc s1udics thnt ha-.•c n11emp1c:d to

r. ,.,,I! anJ e, a luate the medium- and long-1erm ctTtets of downsizing During the 1n1oal ~1agc:,;,

J

I

343 O\,p<cr 12 • MWl>glng WorUon:c Flo"'

of • downsiLmg the O • d lhc • rgan1zauon omg so usuall) mcun, c~Lrnordmanly l:tr sc:,-cruncc pnckagcs. cnrly rct1.rcmcnl package~. outplacement services an:c c~ts "'1:ucd to

10 hel~ SCp:lrotcd employees Monoi;cmcnt can cvuluo1c do" nsm ng by p~pa- so onh dc"&"<d ~•lysis to idcnufy the shorHcrm financ,ol 1mpilcouons of the downs iLing";gda ~O>l-4ltncr,1 ong-tcrm S4v1ngs or losses. n t c r,f>Ccted

CONDUCTING A DOWNSIZING Worlforce planning which you learned abou C on csscntilll pan f - • h ' 11n hal'ltr5 o evww,ung w ctlier or not a downsizing effon should be undcn l l !A • I> finns go through the P'lln of dowru.wng only to have 10 ups1Zc a few ycors late; ~ Sol1lc should_ ~gin only nfic r the fim, ·s shon- and long-term , 1ra1egie gollls have been cstabl "11>1~ downsmng will clearly hel p the finn meet both of those goals. Given that do\\ Wltd llld mat:Jc C l, h M i l.Ing I\. ,- .. . vcn no matter ow well prepared a rim,-• workforce is, the process should be C4rn """· 1n the ~ ost exped ient manner possible Companies often make the mistake of 'Prcadtn cd OIi! downsmng effons over o period of months and even years. This can cause cmplo gout their deal of long-term stress."-' )<es 1 &r<>t

. Dunng a do" nswng. 11 is imponani to stay focused on the orgon1u1,on's &lrllC constStently reminding employees that rcstructunng ocuv,ties arc pan of a pion 10 ,m I) by organi zauon's performance nnd nrc key to !he organ11.ation's future success One e,~;c the that ~• downsizing plan should be included m the strateg,c management plnn of 111I or ic,es uons. ,:csordlcss of whclhcr !hey plan to downs,ze or noL By including such a plan. the or::"~· uon will be bcucr prepared to bcg,n the stuff-reduction process should it be forced 10 d Ill- response to environment.al changes'126 Shoring the firm's growth plons and renewal,~ IO In with employees can also ease the anxiety they arc hkely to fee l. &ICS

For ethiclll reasons. comp~nics s~ould always have a work.mg plan of how to conduct 1

downsmng ,n a way that IS cons,s1c n1 with the company' s val ues and talent philosophy Wnhou clear pol_icics and proa,d urcs set up m adv~ncc, 11 IS more difli~ult to do !he ngh1 thing "hen~ downsizing 1s 1mm1ncnt. Given the traumauc nature of a do wnsizing, c,•cry commumcauon and every actio n should be cons1s1cn1 with the fi rm's values. If showi ng employees respect and com- municau ng openly an: 1mponan1 ,al ucs. these become p11111cularly imponant dunng a do.,1mz. ing. What and how the company communicates wilh separated employees sends a strong me .. sage about how it "111 treat !he people "ho arc bei ng retllned and outside stal.eholders IS -•II Potentilll suppliers. cum:nt investors. and potcnulll employees reading about unelh1cal or i-ly handled layoffs will be wary of doing business wilh a company !hat docs not properly 1rca111, employees dunng a down,mng.

Perccpuons of fairness ore imponont dunng a layoff or any type of downsizing. When Roylll Ph1hps Electronics had to dismi<s about 30,000 employees. it tried lo do so 1n a socWly responsible way. The company fi rst conunucd to mvest in training. education, and J0b seuch counseling fo r people put on a d1smisslll IISI. The goal was 10 make the situauon as attrptablc as possible to the employees staying as well as leaving. As the compony's president and CEO Gerard Klcistcrlce said, "The peop le " ho stay ,n the organ,zation- lll1hough !hey know IS ••II as the people who leave that you have 10 do !hat for !he sake of a hcallhy company-want to.,. that the ixople ore treated hl c people s,,ant to be treated. I always say. 'Treat somebody cht blot you want to be treated yourself. Then you will do o good job.'''

127

When used as a componen1 of an overall rccngineering or rcs1ruc1unng stn11el), • downsiling effon can be cffccthe. One survey of 53 1 large companies that had do"nm«I rcvclll cd that well over half of them hod achieved 1heir goals of reducing costs and e,pcnsc, However, less lhan half had achieved their goals of increased profitob11i1y, productmty, anJ cus tomer satisfaction. m In one case, a unioni,cd technology services company that tned to pursue a low-cost strategy by downsiLing ended up w,lh s,gnificantly abo\C-market l.ibor costs because its union contraet required II to retarn many longer-term. higher-paid emplo)CCS The higher labor costs interfered " ith the company' s abihty to compete successfully on pncc Tabl e 12-6 summanles some of 1hc best ways lo conduct an effective do,.nsmng

Mcasun ng the e ffectiveness of a downsi,ing cffon can be done in a vanct) of " 8) ~

including the following: 129

Mceung 1hc r.nn ·s authori,ed full-tnne employee headcount goals Increasing the r.rm·s ratio of supervisors to employee, Emplo)eC loss due 10 attritio n versus ixrsonncl loss due 10 incentive programs

Chapter 12 • 1\,l o.nJgmg Wor~forcc Flow 349

~ijf!I Best Downsizing Practices 1)-'" fo 0\., rig 1s a summary of some of the best ways to conduct a downsizmg llO • ·

1 n, o've sen,or leadership The company's leaders should be ,nvolved throughout the c.:\vr,s1z ng process and remain YlSlble and accessible t o employees It 1s also important tl"oat el"lployees believe that their managers provide aedible information use freq.Jent rwo-way communic, rion Prov,de honest and open commun1cat1on about .,.,hat s nappening to the organization dunng the downsizin g as ofte n H possible r ~olv1ng HRM executives and labor repre'ientatrves in planning tht downs1z1ng can help •0 ,fT'p•ove both the downs1z1n9 proceu itself and communication about It. Focws on 1mprovm9 the wori( processes that w,11 be needed in the future This helps to

5.,stain the processes that are key to the organa:at•on's future performance. • D s.rr-,ss contract and temporary employees first. Most employers establish temporary and

,o.,tract rela t1onsli1ps with some employees to protect the employment or permanent emF oyees

, COt"SJder reducmg worlc hours, pay, o r benefits. Thls may prevent or postpone the ,eod 10 downstZe but nsks lowe~n9 the morale or ,ncrea~ng the turnover of the higher perlorm1ng employees you most want to retain Try 1o provide opt10ns If possible, let employees choose resign rather than be terminated if 1.,ey pre' e r Buyouts and early ret1rement 1ncent1ves can also allow some e mployees to ret re w th fuU or reduced pension benefits ear11e r than normal Pro~de assrstance to separating e mployees Thts can include caree r counseling, personal CO'-'"set ng, ca reer/skill and career t rans1t 1on tra1ntng, relocation assistance, outplace ment ass stance, resume wnt1ng assistance, access to office equipment, pa1d time off, child care, f1,anc1al counseling, and access to Job fairs and Internet Job placement sites. Don't rgnore the survivors. The success or failure of a downsized organ1zat,on depe nds on ti-e woo.force that remains after the doWMlZ1n9 A well.planned and managed d ownsizing ~•oc.ess that employees believe was administered fa,riy and humanely will help them be e,'ile " and work toward the future success of the organization

• Di:mc,gr.1ptuc1, uf buyout rcc1p1cnt:, • !111r,u.1 on d1, erstty goals , .\hdm· to m~ct budgetary hmih , Pn,du~11,11 y changes • R\·du .. uon in tol.3.l cost of ,\ ages and salanes , ~umber of gncvancc~. appeal~. or la\\ su1ts fikJ , Number c,r voluntary pantc1pants m inccnu,c and career trnns1uon programs

layoffs

I IJ)Of!, Jbo lnown as a reduction in force, IS a te mporary end 10 employment. Unlike ="':..:l~'O.:.F.:.I' _______ _ t:1• ... n,,11ng. \\ h1ch 1s n pcrmanenl separouon of cmp 10}CCS, the company rntcnds to rehire 11mpo,t1ry rnd ,,u1nplo)lntn1 "'' ., 11 ,'111ployccs when busi ness picks back up. Employers tend to dislike la) offs compared

1,11tlhr llo"n~111ng methods. Like downs,zings. sometimes layoffs arc forced by law due 111 ~JJ~cl cut,, \\h1ch 1s lhc case wi th most public-sector layoffs. At olhcr times, economic ,, nJH1l•lh rcwlt m layoffs. tr a firm is unioniicd, union members with scniorll)' mu::,t usu• Jl1~ ii~ rcta1nccl prior to more Junior union mcmbcn. Unfonunalcly, lhis won' t guarantee that 1hc lirm ~ ,II end up retaining the right compctc nc,cs II needs to compete more successfully. s~ n 111~ t,a,~d layolfs such as this can also have a ncgati\'c impact on employee divcnily. • ri, i.: 1h1.•~ d1,proporuonntcly nffccl women and minorities. who, on a\'crage, arc less hlcly tu h J \ l' 1..en1ority Lile do" nsiiings, la)'Offs often have n negative imp:icl on the reputation of Lrin, ,, cmplo) , rs-especially young firms that ha>e not yet established posiu ve employer rlpJIJt1nn, 1 ' 1

In .1JJ111on 10 EEOC compliance. the Age Discriminauon in Employment Act applies to 1,!cll, ,, li,><, the Worker Adjustment and Retr.1ining Nou r.cation (WARN) Act The WARN \lt , a k Jc1JI Jaw requiring employers of 100 or ~1orc full-time workers to g1\C cmplO)CC::, ~ld,11 , ad1 ,mcc noucc of closing or major luyoff,.13-

, l I r

350 CJur1a I~ • \1:uug,ng 11 0<H<>«c Flow

<ITRITI()\

~ ~ Tnf"a111P1 Uf U Jl rm I "'ort/or« dw tot~ rttl t t fN'"-I dttJlh. CK rt'JJptaf1un of nnrJo\UJ

1//RJ\G F REEZE

u pol,n "'fvrtb\ NJ IW• t,,,plu,u, ~ lum!f or.i u nUlll rtnuJ o/NIN

Altemiltives to Li!yoffs

Instead of layoffs, organ1Lauons often reduce their cmplo)cc headcount in olhc A ttrilion 1s the nonnal n:ducuon of a firm's worHon:e due to the re11remcnt, death' "'Y• 1gnauon of employees. Comb,mng natural attn11on with a hiring rrttze, which ,n,0'1 ar "'- h ~~ 1nng any new emploi ccs 10 replace departing employees, can result on a suflicicnc aznou of beadcoun1 rcduc11on 1f the annuon 1s high enough and the frec,.e can be 1ml'OS<d 1

"1

long enough pcnod of ume. Attnuon and hmng freezes can protect the Jobs of sur.,vors, ~ there needs to be a plan 1n place 10 red1str1bu1c the work among them 10 avoid lhcir be chronically ove,,.orkcd.

1 "1

Early retirement and buyout inccntJ\eS are a good "ay lo achieve a11n11on llOd Ire f "ell recmed by employees. Companie> often fund early re11remen1 and buyout 1nccno1e.° lq money they snvc dunng hmng frcc,es. Another way 10 reduce the size of a company's~ force 1s lo cncourogc employees 10 1o.l.e a leave without pay Although on employee's btnct,i. arc usually reduced dunng the lea, c, the company guarantees that the employee can rclJJnt

II tbc

end of a designated pc n od Leaves "11hou1 pay can appeal 10 some emplO)CCS "ho need to con, plete their educat10n , care fo r family. or trans1uon 10 another carcu. When lhe company "&ni, to downs11e to cut llS costs rather than mee t a mandated rcducuon m the number of cmplO)ct1. tlus can be a good strategy.

Fle~1blc " Ork arrangements. such as 1clccommu11ng, pan-ume employment, and Job lhai- mg, which we discussed earlier m the chapter. m conJuncuon w1Lh retention strategies c.an &!so be used 10 downs11c a company' s "orkfon:e w11hou1 resorting 10 layoffs. The artana<meni, can decrease absentee ism o.nd turnover, unprove :i nrm·) ability 10 rteruit and rct.11n llleot, und can increase employees' health, morale. and producuv11y as they achic, e bcucr "°"'·hie balance,. 133

As we mcnuoncd earlJer 1n the chapter, rather than layoffs, 11·s sometimes poss1ble torcdc. ploy targeted employees 10 otbcr part.I of the company or 10 other ]Obs the company needs fiUcd Cross trrun1ng employees ,n different compe1enc1cs and Jobs and retraining them can bcuer enable their redeployment as "ell.

Finns can also avoid laying off employee, b) reducmg thcir " ork houn or rcdu<1na thetr pay nus way. all the employees share the pain of the cutback but no one loses lus or her job. When the economy pulled back. casino operator IV)nn Resorts Inc. cut the v.ages of JIS salaried Las Vegas workers and reduced full-ume hourly employees' workweeks IO l\oid cuuing Jobs.

1 ' 4

Finns m1gh1 reduce employees' pay but g1'c them comp;tny , tock 1n exchange. Oficnhmes fillJlS rely on temporary cmploymcn1 and conlrllcl employment arrangements 10 prutcct the Jobi of their regular. full-lime employees. Temporary and eontrJcl worker, arc simply hired and le, go as needed.

Discharging Employees

Rather than separatmg mul11plc people from the company, as happens w11h downsmng or layoff~. discharging focu)CS on the 1crmmat1on of md1vid ua1 cmplo) ees. Although tJus 1s DOI a fo, onte pan of the Job for 1110, 1 managers, d,scharging cmplo) ecs for reasons rang,ng from poor pcrfonnance 1o m1sconduc1 "an e»enual pan of managing Not only docs d1srespcc1ful or unprofessional treatment or cmplo) cc; increase the 1Jkcl1hood of a la" sull, it also nsks damaging the company's employer brand and future rccru ,ung ab1l11y. One study fo und thot of those "ho felt they had been treated w1d1 d1gm1y dun ng 1ermmauon. less than_0.4.!"'rccnl r.lcd '"""iful 1cnn1nauon claims . Of tho,c " ho rclt they " ere treated "1cry unfairly, o,_cr 15 percent filcJ cl3.Jms 135 As an cx::amplc of 3 poor way to dn,m1ss nn employee, at one un1-. cn1!y the oLalhars htl\C worked. an ass1~t.:1n1 to a program director was looking over the next ) CM ~ budget and noliccd that her J)O)ttlon w~ not mclud~d m II When she asked 1f this was an o-. crs1ght, ~ •as ,old dial actually shew;,, about 10 lose her JOh. 1111, 11 clearly not a way 1hn1 QO) OOC "'ould hkc to learn lhat they arc )OOn to be uncmplO)'l'J

Discharge~ can happen 1mmcdi.ucl) aflcr a policy \ 1olauon or other job miscondud- for C\amplc, a )afcty v1ola11on or the fo1\urc of an employee to rcnc\, a profcc.c.1onal been,~ Altcm.Jt1..,cly. J d1-,.ch:u gc can occur aflcr a long pall cm of poor pcrform:incc. Most organ17.auon~

Chapter 12 • ~1anag.ing Workforce Flo"

. , ,,nii: ll\flll of progrc)SI\C d1~1phnc for poor pcrfonner; 10 give them o cha.nee to 1111pro"c ~"" al prt'~u:,,1on of ,tcp.) m proi?rCSl l\ C d1, e1plmc I\ 11s foll ow~ lr • l~ P•l ..

\ ,crl.1,il \,arning I, \ \,nttci1 \\rulllRg 2, \ s u,r,-n,100 ~: 01,1. har~i:

"'" 1, lhl! l'.il\ C \\ 11h dO\VO)l/mg , d1')(.h.ir1:c Jcc1\ 1on, should be ~ell thought out rather than .k c,m,iio nJII) , or 1n 1hc heat of an argument Whcnc,cr pov .. 1bh:, cmplO)CCS need a chance to

\J-n:~ 1

,he problems they arc ha, 1ng prior 10 their supcf\ 1.)u" taking acuon Ask.mg employees •' ,, •n th.ti they ha,e read and understand die company policies they must follow IS also ~clpful. 1•

1 f \\'hen an employee 1s being told that he or )he " bcmg discharged, th.: manager s main

,I.. 1 ., IO t-c rc,JX,'CLfol but clear m lctung the cmplO)eC ~now that he cir :!lhe has been tcmu natcd

unJ \di) During 1hc meeting, a manager nccdli he sure to dc~bc all the rcle\'anl foclS a~ut the J

1 l\l\cc', Ji'-ntl'.\Sal and be prepared to explain ho"' the cmplo)CC , 1olatcd the company s poll·

'" r · (J,li.'<l tCl 111CCI Ins or her JOb rcquirtmenlS, despuc pcrs1.stc n1 attempt.s 10 help tu m or her l it'' '1T \ human resources profc,;;sional lihould "nlc n :!l1mplc letter that outl1nc ;; the cmplo) ec's J~, ,J I

•·~· of dl'•<.. h:tr~c. any contrnctual obhgauon.s O\VCd to the emplo)CC, such ~ sc,crnncc pay. J. n" i-:nefits, and ,o fo rth, and the name of the manager who appro,cd the d1schar£•· •1.10\lflUI t: d • • HR pro!c,11onal should then send copies of the lcucr 10 lhe discharged employees 1mmc 1- ~ ,up<'" ' "'· pa) roll and benefits department, compliance officers. ony labor organ1zauon 10 "; ,,h ,he cn1ploycc belongs. and to the employ« . Even 1rlhcre JS llll employmcnt-a1-w1II agree• '" f ol l'\Ct\H'l'n the L"o panics, 11 1.s 1mponan1 for a co~_r:ny to document a.J I discharges and keep !hilfl)\lfh and accurate records rcg11rch ng 1.he1r cnu.sc-s.

HJ' ini d1~ lmrgcd (or downsu.cd) cmplo)CCS sign a s~ •tmnce agrunrtllf thal includes a rt .,<

11 ,t , 1aung that the depanmg employee g 1\'CS up some or all of tus or her nghlS to :!IUC the

,m,rJn, c:m reduce 11s nsk of future hugat1on. Employee release~ arc used mosl o n_en ,,hen a :1,mpJn) d°'-=' nol ha,'c the propcrdocumcnt.:llJon 10 fire an employee but " flS to end lite employ• r,k.'.nl rdJnon~hip ,,,1th him or her and rcJucc the poss1b1lity of a laYt suu. n To be most effecuvc, th~ n.·k.i.,c need.'io 10 in, 01, e ,;;omc sort of e,ctuntc bcl\l.CCn lhc l\\ O panics, usun.11) money bc)'ond Jn, , u nJ.irJ ~\ crnncc agreement The employee necili. lo be gl\'cn an appropna1c amount of 11mc

1,, , \,·NJl.'r the offer and c,cn change his Of' her mind aflcr (,ignmg n. Finally, the employee should N Ji-k 10 ne~ouate some of the tl£rccment's contents 10 )how that the agreement w~ not c<Xrccd ,,., 1,ngl) 1 8 HR professionals should seek legal counsel before drnfung a reka,e:

Snmi: lOmmon d1,chargrng errors include doing 11 publicly. wntmg a pos111,·c leucr or rl +,h nlC Jfter a tcrmma11on for cause (1h1s O('K'nS up the compa.ny 10 charses of havmg g1,cn J "~ .: ltfl'nl rcforrnl), try1ns to do1.:umcnt a discharge for o JU.'iot cause cn\C that doesn 't cx1sl, fir• ni: ; n \' lllplo)eC af1cr a ment rai:!lc or fa,or.iblc pcrfonnilflcc re, ,cw. and s101ing that the person

• 1

~rtJuc1inf 1hc J1'\char£C disagrees with 11 Junes hll\C aho looked unfa\ orably at d1sc h!lf'gcs that 1\1.rr: Jlml' al the end uf a " orl day or \\ Orl,\l'd. , af1cr the employee rc1ums from a busmc.s.s tnp. l l Jt 1h1." ~·g1nnmg of a hol1da)

Dealing with the Risk o f Viole nce

11 ,: r1\tl·nt1JI c;..1,1, for stnlc, or C\ cn , 1olcnl'C during and after a d1\Chargc. layolf. or do" ns1L• 1"; ·~ !'.>ufX'I"' 1,ors need 10 be nblc to :!ipol 1he warning 1nd1cators for emplo)CC , tolcncc. 1nclud· " !.'. Jn~cr, dcprc),JOn, paranoia, w1Lhdnmal or 1solauon. and drug or alcohol abuse, on 1hc pan ,,f~cmP1u; i:c~ Many compamc_., now conducl 1ra1mng to help )Up.! rvisor:!I ~cogmzc 1hcsc s1gn11. C.1,i 1h: cmplo)rC control hb or her bchn, mr? If not. lh1s 1s a \\nrntng sign. Managers should j J 1 ,111u111C111 to how the employee's cowor~Cf') rcacl 10 hnn or her and l1s1en to their concern _.,. t , -'11r~lr, often get u good look nt each 01hcr·11 hd1J\IO~ 1ha11heir supervisors don't Any and J I 1hr~·,1t-. ,hould he rnken _.,cnou,ly It's J)O)Mblc that the crnplo)'ec may need 10 uuhzc the orga • r tJta,n·, rl•, ourcc!) includmg an employre a_.,s,_.,tnncc pro~rum. Ir the employee 1$ fired. he or \.,, r'lj) ni:l·J JX'"-tlcrm1nm1on monuonn.s and counsclmg.

I hi, lh.iptl!r· _., Dc,dr,p Your Ski lls fentun:- prov1dC:!i _.,omc up-. r{lr conducung .an effcc11vc

n ~.1 111,:; ,, hen d1M.lurging an cmplo)eC

351

l i 1 I

i

352 Clur1« I~ • \l>n.igtng \\ orllOI\C ~lo~

DISCharg,ng an employee f ,1 or not at some po int ~ a pan o =rv manager s 1ob like to hre someone Your main ata"':~ager, YoU will P<obably have IS to be dear ,n letting the s I unng a term,natton meeting te ed emp oyee know he or she 1s being

rminat and to reduce the employee' d lawsi.nt against the comp.,ny Follow, s esire to pursue any

d ng are some ~ps to help ~u Reon uct a d•scharg,ng meeMg professoonally and eff~vely

emain impartial. calm, and In control f th be respectful at all umes o e conversat,on.

usten to employee requests for severance terms but reserve fu':I deos,ons for a later time, being heard and ~ons1dered w, ""1ease the employee's perceptJOns of fairness Be dear 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 rt you feel your message is not being heard Don't grve career adv,ce to someone you've Just fired

• ~ the person is being terminated. don't say "laid off• because rt implies the pos,,b,lny of return

Hold the meeting 1n a pnvate, neutral locatJOn • Deliver 1nformatton without engaging m an argu

prepared notes ,f necess.iry Do not ramble, mak;"°l lllf or s.iy a m,sta~e is be,ng made Prom11es Be empatheuc but do not apolog,ze D,scuss the eHectNe term,nauon date, any >e\"'r•n~ age, and so forth, have the details of the term,naoonlli<I severance package 1n wnt1n9 so the emp o-,ee can ,Jfld Ir'! with htm or her along wrth the details of the term,!k• 1"'"1 Be awa1e of legal compliance issues t>on Wnte up an accurate record of the 1erm,na1ton ,nte and provide a copy to the employee l\lev, Be sure 10 cover the practtCal matters such as retum- mg company 1dent1f,cauon cards and k~. and how the employee w,11 receive a final paycheck

• If necessary, involve company secunty but ha,e them k low profile un11I they a re needed eep •

• Noufy all relevant part,es after discharge that the employee has been terminated

Improving Onboarding at Hilton140

Summary

To 1mpr0\e the rclc-n11on of 11s n..."(.Crvnuons and customer carr rcprcscntau,cs. lhlton bunt a. rctcnuen strategy nroun<l "'hY cmplo)ecs 1end 10 \lay Y.tth the company, mclut.lmg 1he strong brand, ltl,'C} bcncfiLS. and Y.Orkm~ fro m home Core Job s~lls \I.ere 1dcnt1licJ and mtcn icwcrs Y.CTC Lrained to conduct SlJ'UCturcd mtCf'IC\\os \I. 1th a spccul focus on n:tcnuon Removing technology clpcncncc&u Job requirement and Lrammg 1t instead c,:p.u1ck-d the apphcam pool to mcludc older Y. orkers ~bo ha,c the other core Job skills and "ho tend co h:i,c loY.cr tumO\cr rates Milton also cJe-.,cJopcd I rcalhuc Job pre, tCY. 10 promote aunuon at the apphcon1 stage rather than posth1re

Hilton now 11~s1gns the tic,1 supcr-,~or nt cJch locauon 10 be rc~pons1blc for each new.I) butd team member 1mmechatcly aflcr tr:1m1ng, und holds lhcm uc-countahlc ror retaining their tctrn1 WlliJ the 9().day mark Tr.uncf) nnd supenhors aJso d1,cu~(C(f y,,h1ch cmplO)CCS Y.Crc likely to stayo, k.uc based on either their performance or prckrcnce to d1..-odc y, ho to coach and " ho to tcnnlm.te baaed on poor performance New h1rrs are also g1,cn color-coded badges to encouragt other cmploym to "'clcomc them This also leads to s1 cclcbrauon after complctn'lg 90 days on 1hc job "' hen the nt'tlr blro n:(C:1\e a regular 1dcnufo:auon badjC lhhon al\0 OOop1N new ml"lncs for it.5 Cllll ccnter dntetors mcludlng a1 lea.st 75 percent of new htrc" rca"-hmg the 9().®>' mark and half of all new hlrc1 eonuna from emplO}t'C rcfcrra.ls due to their higher rctenunn rates

lhlton's 1mpro,cd ,taffing and onbOJrdin~ proce~scs arc v. m ~1ng Tumu,cr lktlincd ot IC&\l 20 percent each month for 1hc first four months. and business lllC:lncs. including quJ\lly, C0Jt JX'I' all. .111d a,cr.i~c handle umc. 1mpro,cd

Managing 1he n ow of talent into. through. and out of 1he com- pany is an 1mrortant pln of strategic stafr.ng. Soc1ah1a11on helps new htrC> understand exactly \\hat Ll1e com pany ,s, \\hat 11 docs. how n ma~cs money. and "hat 11.'!i norm\ and cul- ture arc B) reinforcing new lures· role in the cornpJny and 1ts bu~incs!t \lrltcgy cxccu11on. socializauon help~ gel 1hem

up to speed fu.,ter and enhance, business strategy cxCCUIIOR Properly ,ociah11ng cmplu)Cc<, rc1am1ng top performers, and manai;mg the turnover rale of undcrpcrfom1ing or unde~r- ablc employee, arc 11nportan1 to gc111ng the nght people ,n iht rtfht Jobs at the nght lime and enhancing the c, ccu11on of 111) busmC)) ..,,ra1cgy

Takeaway Points

1 0 u;n!Jll•'tl mJ \tx-1ah1.Jttun v.orL 1oge1hcr10 Kehm.ale nc"' hue\

,,, ,111 '"~..1,n11J1111n , llM-' ,i)l.1.11t1;11 1un JH\KCSS "-an be 1mpro"cd by MX:iaht1ng nc1A, ... \.,11r11,H"\' ' .1, J group, u~mg formal tK'1n 1t1C) and malcn.tl'i. m 3

rrnkt,·nmne.J order v. 11h1n a )J)('c1ficd ume frame, gi, mg ne"' ~111rJtMc, aet~~ to role moJcls or nlCTl1on. and f"N"id,ng them ...,1111 ,1, 1J I ~uppon

t 111~ .. ,, Uilfcrtlll l )()CS of l\JrTIO\Cr arc \o OIUnW). ,n, oluntJJ) ,

3h,,J.lblc. una,01dJblc. functional. and dnfunC'llonal Volunt:,,ry iuniu\cr 1, " hen the ~p.unuun occurs ~hen an cmplo)ec c.hoosc.s h.l kJ\ C' 11\c firm or h1\ or her own 3C'coru ln,olunUJ) tumo"er 15 \• h.:n the ..cr.1ra11on ,s due 10 tM organ1za11on AS\Jng the emplo)ee

1 ,, ICJ\{' fun .. uonal 1um0\cr 1~ lhc depatturt of poor performers o, ,fur, 11on.1I tumo,cr 1,; the dcpanurc of cffttt1\C pcrformcn the ,lw rlfl) v.1,uhl hJ\C M,cJ 10 retain A\•oidable tumo,cr i\ ium- 1.• H' I 1h.1l lht emplO)Cr could h3v~ prcH~ntcd hy addrc-ssrng ihc

0 .. ~ llf the 1umo, cr. Una, 01dablc rumo,c:r 1s 1umo,cr 1hat could nvt h.1' c been prc,en!C'd by lhe employer

~- .\ fi rm', cmpl..:i)C'C' rctcn11on Slr'BtC'.'g1cs can range from mc.rca.smg ~r,rll1)Cc,· pJ) and benefi ts. challenging them on the job. dcvel• nr•n~ t'ocUC'r managers to supcr.1sc them. offcnng the employ- ee, " l 'I-. tlC'\1b1ht) , creollng accountab1lny 11J1\0ng nunagcrs for rdJin1n~ \JlucJ lllcnt, and locaung the company in a desuublc

Discussion Questions

1. rtun~ cf 1hc umc )OU fir).! JOUleJ an employer. tn v.hai wa)s did 1!-~• ~,1mr.ll\) nnJ )\Jur co,.ori.er:. &0e1alizc )•ou"I Wha1 could ha,e 1, .. ·11 J.,nc to enhance )OUr sodahiat1on cxpcncncc"

l. H~,v- J\, >"u 1hinL 1echnolOJ;:) can be u!ICd best 10 socialize new c"11pl1' )C'C'\ and gel them product1,c llS quick.I) llS possible? \H~n "liulJ u,1ng 1cchnolo.u not be a good ~By to MlC'1ah1c ('l\lr!1l~ l'l''I>

Exercises

1 "1lttl/\ / 1c'rc Uf', \.tongagc orig,mttor Caltfom,a-based IndyMac ll,nl. 1\11,, u":J on hu1IJmg cmtomer rclauomh1ps and pursued a ~'\w.th ,ir.lll"S> 1·11 The o,cmll turnover ra1cs at 1hc PasJdeni. [ J.1t,,rm;1, office \l.·tre 500 to IO pcrcc.nuse points aOO\c indu~II) I'\ ~ hm.irl.,. rang.mg from O\. Ct .SO ()(fCCnt ror sales and opcmuon~ 1 ih~ 1,m teen\ for prnfc!ls1onals and m1nagemcnt. Tr3'httonll hm11\~·r .inl l)''' ~u~c!llrd tha1 IndyMac should be hemonhag~ n-.: r1..mq lr1,1caJ. the comp:ln) ~ubstnnt1ally oulpcrfomicJ its

•·•1~11\0 r. 1.U

l l\1" 1.ould 1h1, be lruc? Thc MS"'-crlicsin the blnk'sundcr- " 1·~1ng pf the cm1s Md N'ncfits or different types of tumo,er In f 1\ 1 1hc n1mpJny calculated the break point ¥ihcrt the fif'H\!\CIBI ~·11,·fi1, of 1hc firm'!I 1umovcr outv.cighcd lhc com For eumplc. h1i.l1\·r 1uni." er" a_s accept.lb le ror low-impact. nonc '(cmpl opcr:11• 1 ~· r-1, it1l1n, \\ hen an cmplO)CC lcn one of tk-se jobs. lod)Ma(' I"' tl.rt .. •J the ,a\ mg) \\ hen other employees r1cl.ed up the work· • .. J 11 r the JO to 60 lla)S thJt 1hc a,cragc posilion 1s open. plus ,k!1t.l10J\ ,,1\ rn~s "hen an ann1.1al bonus was not paid out Ill 1hc

f.: h o,1 \\ h,, kh or \\ hc-n a replacement employee was brought m a ,h~hll~ 10\H:r ~alary lc"cl On the other hanJ. 1umovcr among

11 , fi1111' 1; h1,1;h-1mpact profc,, 1onal and mW'll\£;erial rmplo)~

ChJpter 12 • ManJgmi Worl fortc Flo" 353

are.1 or ,n an nrea Y.hcr..:- there arc few firms competing for lhc

same lJICnl S. RC\Juctng o finn'~ hc.Jdcount so as 10 u,nl lhc company"s lobor co!ll!l

cw, be accomrh.shcd via du"nswng. l:iyoff~. niu,uon :inJ tunng frttl CS. by ofTcnng cmplO)ttS cJII)' r1.11rcmcnt and huyoul inccnt1\'CS or lca,c.s y, 1lhoot pay. m-aung llcx1blc "'-011. rurJngcmcnts for them. rro,ploymg emplo) res. redocmg 1hrir won- hours ancVor pay ,o lhal al I c-mpl..:i)ca share 1he pam of a cutback but no one lo)CS h1.s or her Job, and rclymg on temporary and contrac1 Y.Orl.e~

6. D1s.ch;vging an emplo)'« requires clc:irly commumcating 1hc mes.sage thru the ptl'}on· s emplo)menl 1s bcrng terminated and Ol· lCmp1mg 10 lc'ist n the person's desire to pur1ue any legal acuon a.g.1ins1 1he comp:in)' Ask.mg the employN to s1gn o sc, crancc agrttment 1ha1 includes n release 1, one measure lh.11 can be taken It is important for 1he finn 10 treal the employee w11h respcl.1. hold lhc termmiuon meeting in a pnvnlt place~ clearly commumcnlc the rca.som. for the 11:nmnauon and o.ny scYcrunce package being offered, and g1,c the emplo)ec 11 1ennina11on lcllcr

7. Supcf\1M>n need to be able lo ~p011hc warning ind1c:itors for ein- plO)'Ce , 1olencc. including Mgcr. dcprcss1on. paran01a. "'-llhdr:l\.\ 3 1 °' isohn1on . .:md drug or alcohol abu~. on Lhc p.lf1 of emplO)'CCS. Many eompame) now conduct training 10 help ~upcrviM.>rs recog- nize these signs

J. What arc Lhc factors that Y.ould make )OU moM hLcly to qu11 )Our curn:nt 100 (.b!luming you arc currently worLmgf> Whal could )Ot.ir org:u11Lat1011 do Ill retain you.,

-'· Whal dov.ns111ng targeting mclho<l~ Jo you reel arc the most crr«11,e'> Whkh !lf~ the lcas1 cffccll\C. and \.\h},.

S. If you had 10 discharge an cmplO)CC ~ho )OU thwght had the po1enllal fo r v1olencc. v.h.11 Y.OUld )OU do,.

eould cau~ a St'l:•month tll'lay on tl muh1m1lhon-dollar project W1d cost IndyMac nulhons of dollar) 1" 1

Opum.i.l tumO\cr rJJCS "ere- mcaMi.n.-d w1ltun a grccn-ycl• low-rcJ range and differed for each Job ea1egof)' and for per· formlncc leH~ls wilh1n each category The tumo\C·r rates in ,he green band "ere lin3IlcMlly brndie1al for lhc firm. the lumo, cr rates '-'•Ihm lhc )ellow band ~the brolllcst banJ) v.erc cost•neulruJ and tud a minima.I imract on the rompany. By contr.ist. 1umo\<er nucs that climbi...'-d into the 1\-J t,.md begin to Mgruficamly hun lhc organ11,1t1on 1~

After cnk:u lllins the brcaL point of tumo,cr ror different JOb Cj(egonc.s, IndyMac 1umcJ iL, auention 10 undl-:rsUUlding the <ln,•cn, uf 1umo,er Md t111al)1cd daln on many or its 5.cn> cmplo)ces tu tdc11t1fy "h:u mlltC't'S most to .S('ICClfiC segments or US \.\Orkforcc. HS ltu~Lhc ~u\ts ofthcseruuly'-CS to better retain tor, pcrfonncrs. The bank also used steep pcrfonnancc-1:mro pa) diffCTt"nt1Jh to mamtain desired iumo, cr ml~ among its high and lo" pcrfom1cN l.16 a. What linanc1al l-ocndit.s d1d lnd) Mac lio.nk rc-cche ~ a rc.suh

or 11c. tumo,er? h. What " ul' ~ome of the ti nlncia1 cos~ of tumO\cr for

Ind) Moc•

i I ~ I

'

3 54 Ch,pccr 12 • M31Ug,ng Workrom: Flo"

c. \~ ore some or lhe hkdy long-tcnn C<>ns<qucntts or 1h bani;: S lllmO\"Cr MnllC&) ') C

cl. ~-= inclwge or,mpro,•inglhc men1ionoflnd) ~fac', 2. awug,rs. .. bol~s .. ouldJOO WClOdothis1 ~7": Yow- Sb/Lr £.urns, Thu chap1er, o.,,.lop Your

l ~ presented you with some bps on how 10 tmniwc on emplo)tt. Identify a ponncr ond choose who .,,11 be 1h fi to be tanurw,d. lnug,ne Iha& lhc person being lenmnat:i : boen • front desk nunog<r for Sunrise H01<l for lhtte year,. Mier perfomung •~ well lhc ftr>l Y"'<, lhe nunoger eam<d med) ere pcrfonrww:r ~CW$ l.w year. and C\CO lower CCV1C"S t:S )~ After going lo N ·o development prc,arams m the last ) car 10 impro,"'C I.he front desk m:uugtt's customer service skills. his or ha pcrfonl'W'K'C continued co woncn and the company has dcadcd to tCl'ffll.RJ.k I.he manager. The tcrminauon 1s cffcctJ\'C •~•c!Y· l1nd the hottl 1.s 1A1Umg 10 offer two wC'Cks of pay lb sc,cnnc-c if lhc rn.lln:lgcr is wa.lhng to sign 3 release of his or her kguJ nght> ro sue for wroogful discharge. The person doing lhe firing '-' lhc bo1<1', gcncnil manager and 1w bttn lhe from c1e,k m.1n!ger's supcrvuor for Ute entire t.hn:,: years In fact. the 1wo of )"OU M\C bcc<>m< fnends.

CASE STUDY

TUmON ASSISTANCE AT GARDEN GATE

Dunng the past 1-1 years. Garden Gnte Inc. has grown from • small local garden supply company into n diversified corporatio n " ith stmes in 36 sllltes and net sales of almost S 1.4 billion. 1llc company curnntly employs 26..500 people and has been cxpan<fing • t n 12 percent annual rote. G3tden Gnte expects to continue tlus pace of growth for at lens, five more years. The company hns n llllenl philosophy of treaung it> employees ns invcston and spends heavily on their trnin- ing and de\"clopmcnL The firm also has a generous tu1uon-3id program that alloM qualified employees to pursue bachelor's a.nd master 's degrees p:u, time 1f the degree they are pursuing is consistent with their career plnns established in conjunclion with their supervisors.

Last year the company spent S350,000 on 1u,tion aid and recently decided 10 more close ly evalua1c 1hc program 's effectiveness. The eval u31ion wns prompted by the recent departure o f Jill Ises, who stated thnt her reason for leaving wns that $he had not been promoted in the yeru- since she had rccc,vcd her MBA degree. Her career plan had been to become a senior :iccounWll in ont of the company's regional offices, and she received high pcrfonnancc appraisal evalua- tions while earning good grades in the accounting program. Five regional accounting manager positions (the job in between Ttll's current JOb and her desired senior accoun- tant position) had been filled in the past year, and Jill had not been conlllcted nboul any of them. Further investigation identified 17 other tuition-aid beneficiaries who had left in the past year. Like lses. these people said that their lack of being promoted 3fler earning their degrees " as the pnmary reason for their leaving . The fo llowing table describes ohc

Using lhe adJ1UOl\.ll ba..lgn,und lnfomwinn SI"' )OU and lhe ups In thi, chaptcr', O.velop vouf;:;""""""' conduct lhc 1cmunalion 1ntm-1cw The person Gct1tna lilb fC':ltltt. rt>ist lhe nt"s illid 1/)110 mal:c the terminotinn '"'"" ,..i ~Id , sue as poss,ble. 0on·1 rruike It too ruy f0< lh• &<ncr>J .,. 11 ...,_

\Vllen )OU""' fim,h«f. lhe penon being fil1XI , ......... , Lhe per>0n dou,g the finng fttdback on what he °' ,he hould c,,, "'hat could ha\'C 1mpro\cd the ttnnuu1tion interview and dad •en. ¥i.C't'C made 10 kd dunng lhc process. Now s"hch' ho1r)OII :ioothcr group and do the cxcm.sc again pla}mg lhc t~ ' 11ti

3. Optmng V,gntne £.urns~ This chapter', opcning \lcncu tntcd ho"' Millon socuihz.cs 11s new ca.II ct:ntcr fl'SCr. c tll111- c-u.stomer care cmplo)C'CS Reread lhc vlgncuc. and :.,,OtiS lr.t follo wing quC\IIOOS l1 ~ a. What nrc the Strtngths of Hilton's \Oettthz.uion pro

"hY' i'>tn '°" b. Do ) OU thml. that ,t ,s appropnatc ror Millon to hold

, 1sors occounl4blc for cmploytt rc1cn1ion dunn~ ~ UJ"tt, 90 days? Why or.,., hy not') lin;1

c. Wh:it odd1uonaJ ideas do you ha,·c to qu1clly ~ahzc nn cmplo)!'C"$ into a company focu~ on customer k r.-ice?

18 empl oyees "ho rccc1 ,ed 1u1uon 011.J bu1 lcfi 1hc comp.1n) I because they had not been promoted.

~c company' s review of_ 1b internal hinng policy ,denufied the fo llowing three primary sources for idenllf) ,ng intcmnl tnJcnl, and some problems wuh lhcm·

I. Supervisors arc asked 10 nominnte employees they feel ,re qunhfied for openings in the company, but there art o ft en dozens of open po,1 Uons, nnd mony super>i<ors do not regularly review the inlernal job postings.

2. The form's HR professionals try 10 match open po1111on, with employees who fit the cnterin for them by lool,ng 11 the company's skills inventory datnba,,e. Unfonun,1cly, the infonnauon in the database 1s often outdated or incomplete.

3. The deportments that have openings recommend cmplO)· ces they foci arc promotable.

4. Garden Gate's management is concerned 1hn1 ,1 tS not rcahz1ng a suffic1cn1 return on its con~1dcrnblc IO\C)l• men1 in us 1uit1on-aid program, 11nd is cons1dcnng dis• continuing the program.

Questions

I. Describe the key problems with the 1uition-nid program 2. Docs the infonna11on in the table indicate nn) special

problems or issues? What do you suggest Garden Gotcdo about them?

3. Should Gorden Gate discon11nuc its tu ition-aid prog.ram 1 I

4. Create a plan 10 improve the retcnuon of 1u1uon-aod rcc1p1cnts

Ch11p1cr 12 • p.131\Jgin_g Worl.forcc flow 355

--- De9rtt Eam..d Position Taken Outside Garden Gate N•""' ~nder Race• Age last lob Held with Tuition Aid Joe Bandy M C 42 Dc1ta Processor BS, Account,ng

Accountant I sales Manager

( amryn Donley C 33 Adm1n1Strauve Assistant BS, Man.igement

Lauren Soano 35 Brand Man.iger MBA Reg,onal Manager

HO Sh• A 31 l09al Assistant MBA f1nanc1al Analyst

J Markeung Manager Jose Diaz M H 39 Adm1n1strat1ve AsStStant MBA

tl·ere!.e Oay 8 28 Customer Se Mee BS, Account,ng Management Trainee

Manager

rda Crowe H 33 Admm1stratJve Ass1st.tnt BS, Markellng Brand Manager

' R:>n Brown M 8 27 ProJect Manager MBA

Plant Manager

Ma11a Cort na H 45 CompensatJOn Analyst MS, HR HR Man.iger

Deb Sandy H 24 Data Proctssor BS. Accounung Accountant

10 L,nda Winter 28 Trainer MS, Adult Educauon

Trammg Director \1

Danny ( hen M C 24 Customer SeMC.e BS, F1n,3nce F,nanc,al Analyst

12 Manager

M,a Bandy B 33 Admm1strat1v, Assistant BS, Marketing Creattve 0 1rea0f

IJ

Ocina [ l1scn C 3B Marketing Analyst MBA F,nanc1al Analyst

14 Zhana Ames H 30 Sales Manager BS, AdveM1ng

Account Manager 15

J,11 lses B 41 Accountant MBA Account ing Director

16

'7 Alec Smith M 8 26 Adm1mstralNe Assistant BS, F,nance Management Trainee

'S Sally Masino C 2B Payroll Clerk BS. Man.igement Sto,e Manager

-:;0, race. A• As•an, B • Black, C • Caucastan, H • Hispanic.

semester-Long Active Learning Project

u~H·: r J 1,,,x1:tl1Lauon plan for lhc person hired for ) OUf chosen pos1• t-.. ""·J on the soo:ll11.ation choices presct\lcd i n Table 12-t Jusury

.,,, , m, 1,mmcndauons. Be sure to rtOcct on lhc company's -cuhure

"' hen dc,clop1ng your soc1aluation plan. Also recommend appropriate Ma ffing technologies that you feel would benefit the plan.

Case St udy Assignment: Strategic Staffing at Chern's

'\ :,· :t-~· JrJX'1W1, :u 1hc t,acl,, of 1hc book for this chapccr's Ca.sc Study Assignment

Endnotes

I ,nm:gan. R P . Ht1l11nl.mg R t tftHIOII Ill Good Ti~s and Bad, \ \,,un lJ 1n View. CA· Da,,lts-Blxk. 2010 ... About Mil1on," 2010. h11p II••" hilton com/en/hl,brand/abolll.jh1ml: Finnegan, R . ' 0 11•Bu.ud 10 Rcuun." Talttll Managtmt11t Magrjnt, M arch 26,

: 010 hJncc,ich. J M .. and Donnelly. J. H .. '"l ob O ffer Ac:cepu,nce Ul•ha,1or and Rcmforccmcnt." Journal of App/i,d PS)·cholog.)', 55(1 971 ) 119-122.

1 I«. D, ""Mo" 10 AY01d lhe Four Deadliest Onboollling Mi!tal.cs,'' I ,,.crromc R«mumg £.rcha,1gt, November 22. 2005. www.ert. nrV.irt1,tcsld!v.lPJDEDC4BD074E23A72AD9889333S2CA nsp

4. Ibid S. Mulhch, J., " They're Huro: Now lhe Real Recnuting Begin,;·

\Vorkforrt. Manngr.mt.nt On lint.. January 2004. www.workforcc. eom/secuon/06/reature/23159/60.

6. W1lh1-ms. R.. Mt l1011 Uarni11g Cun't Rt.narch Srudy, New York.. Mellon Corp .• 2003

7. "Intel." CNN Money. January 13, 2013, http1/moncy.cnn.rom/ gal lery/ncw5/companles/20 13/0 I I 17 /best-companie,-perks. ronunclindcx html?ild=HP _LN.

8. cascio. W. F , Manag111g 1/w,IQII Rtsourrts. New Yoe\:: McGn1w-H1IV1"' in, 2003

156 Clur<c,r 11 • \f~g Won.fem, Ao"

9 ~~n. C.. ,l fanagur8 for u,, SJ.on 1 nm. Th,r Nrtt Ruin

Dcatb~ ~~M.lU'ILD "' a 0a, .... u,..Dav World. '\'e" Yorl. -40 Lc\Cnni, R • ·:\\ 11m,cr Wckon~. Fatter Profill.,

/ ,nuJI) 10. - 006. h11pJ/money cnn '°llll2006.v ,....., romp.1111c-\ll'Csrros_-.elromcn1u.tlvin<1a bun. •~"

10 -:oo7Tr:>irung Top 1::s.- rrau,u,g.1/a•a.::.,,.- M •• h'007 tr.u.ru~ m/ 0 . . ..... - · """'"

11 Hmk, D ~al maiui;c.rrunalinugcstpdlV200TTopllS f'1l Ma~:.-_ -J ~I 'Are l'n«l<s.s"' QVC." Ta/rn, Manaitmt•I

-' I BlSC'd on Chlo e l ~! , "Organ1/illlOnaJ Soc,ah,..uion

anJ Con"'IU<OC<> . Dub,nsly. A J . 110 ... u. R D lu C...,. \ . JJ1d lltlltng<r. D N. "Salt<fom, Somll/-i,

1•sr.n,, l 1/orl.,img. SO (19861 192-.!07. fisher. C. D °"· '°"'""'<f Soc1:1ht.11Jon An lntc-gramc Review" Rr ·· ~&n•.u.i~

•--• """-v -3S---II I 1. "'Our C\womm. - S Ian

Id, ' n . 21X>6, """"w s1l.uu, rom1,11c1 13

rorpon our_cu,,omcn.php"doo-116 · Jr",c-" 1n p

I.«. D • "'Onbowuig Tlw \\clromcs :inJ ln,p,n,-.. - ER£"" Apnl 10. 2008, hnpJ/""" CTC.n«/2008IIWI O,onboonl . h.o. v.--clrorncs-w -1rup1t't"V mi • I

IJ Ibid.

15 ,·:in \ bmcn. J . and Scban. E. H . l o""1U'd ;s Thcof) of Orpnu.u,o,uJ Soo.llu:aoon... Rararrh 111 Orgam:ar,0'111/ B,lta,,o,, I ( 1979) ::W-:6J

l6. Soc. R. A . £mpla)re Trauun, and Dnrlopm,m. 'le"' Yorl. \kGr.1 .. -HJl lllN1n. :!(X}5

17 Ibid. IS \':in \l~n 3lkJ Schc-in. lo"'ard a Theory of Organ11.111onaJ

S..'CU11L11100. - 19 lb,d. ::0. Ibid.

11 s.ucr. T ' - Bodner. T . Erdopn. B. Tru.<1ll0. D .\I .anJ Tocl.<r. J S.. -:-..,....,mer AdJU>tmcnt Dunng Org;,nuo,,oo.,J Soo:ilU.lllon -\ \lcu-AmJ}'uc Review or Antcccdcnu. OJrcomcs. and

\ l<thod<.- loumal of A.ppl,,-d Psycho/of}. 92 ('JJXJ71 707-721 1-1- aw,, G T . O' 1.C81) , KcU). A M_ Wolf. S . Klein. 11 J . and

G3tdncr. P D . "OrpnwitioruJ Soc1:il1Z'11Jon: ILS Con1rn1 and

Corucquc=.- Jounia/ of Applttd Ps)rlwlog). 79. S (1 9~/ -:J0-.7JJ

13 \fulhch. 11,ey' n, HJl0d /sov. lhc Real R,-cn,,ung Begins -

~-4 Loe. .. H O\i\ 10 A, 01d the Four Dc:Jdhot Onboord1ng M1~alc.) •·

25 Casc,o , Manoiuag Human Rr.sourus

:6 Sulli,'Jll, J . "'Bn1 Recnuung Pr:Jcttccs from the \\ orlJ' ,

Most Bwlllt:SS-L kc Rcrn.uuni Funellon, Pan J." rlf'rtromr-

Rrl'nmu,g £..u:han1r. Oc'IObcr J. 2005. www err nel/arurlcV

~18C!C066i92982C27 A0FF3BC8B9E.asp

27. In Lee. "'HO"I' to A,0tdlhc' Four Deadhe)I Onboardtn8 ~-11.staJi.cs -

!8 \\ )'l.lL W _, Wt"a1ht-nn.r 1hL Storm. .4 Stud) of Emplo>r,,

Anuudu and Opmu,ru. Wal.Jon W)lllt World~ ,d,. 2002. ~ ~ ~

"-al>O"'"J>U.com/rcseatc:b/resrmdcr asp? 1d:W-SS7&pagc,;6 .29 l\oc. Emplo)rr Tra,rung and D,"(opmrnl

JO "'1007 Trairung Top I !S, .. Trammg Moga:Jnr

JI \an ~luneo and Schein. l o-.:ard a Tllrory Organ11..if.1on.1I

SoctahulJOn.. -

J l. Gnmun. J A.. Sili. A. M • and Z1<og. D I . ''Organ11a1ional

SooalJl.:llJon TaC1Jt;1; and Newcomer Proocti,c Bchd\lOf'S An

ln1,p,1ne Slud).- Joumal ofVarmwnal B,ha,·wr. t!J. I (ZIJ06)

90-IOJ )J Stt Rosenbaum. J E... ""Tounwnent M ob1h1y· Career Paucms

1n 3 Corporaoon. - Admurutro.10~ Xirnrr Q,,anrrf) . 2.a. 2 (June

1979): 220-2-11 . J.l Von Ma:ircn J_ "Proplc Proccs.<,ng: Strat,g,es of Org;11111J1Joml

Scxuluauon. -orgau:Pl,_,i O,nanua. 7. I (Summer 1978)· 29-JO

JS Ibid J6 Ibid J7 "The Top 50.- Busm,ssll'rd. Sep1cmb<r 14. 2009 40-II

and Human NrsoMr r Managrn~m • .a (1986) 101_14 /~

J '"l Sulll\Jn, J . .. From A.,~c lO \\ Grid-Cb.is A

Tr.in,ronn Your Onhoaf\j1ng/Oneruauon ~ °"'-lliw IO Dmrun,r Httru,tmg l .... uhlmgl', October 2.3. ~ ,.,. l>lri I.• arucl<vdh/0138 86:0F I B6JC8FA9B8S757D2.JOA~ .,....,

J J Lc,enng "W:anncr \\ tkomc..s.. Faurr Profits," lip

JJ ~aloncr. G . wid Chani, V • " C.p11AI One Fi'l.UlCoaJ Corp and Sh.lp1ng Slr.Urgy," llan•<Jrd BUJutr.sJ Cost' "-· ~ 100J. ProJuct •S\1115 '"""'"'1ior 11,

.is Arend. M • ''Campus Culture. .. Sur Srlertwn \fa :001 '"""'• 'une21.

J6 l boJ 47 \10,-,10. D . "U,on, Technology 10 Get Emplo)ee, Clo B •

1/R Mo taunt. Apnl 2005 107- 109 OlU\l

-IS lb,J

J9 Fr:iuenh<om. E. . - 18\1 lc.unmg Programs Get 1 5-..i I.tr _ IVorl./orrr Managrmrnt. Dcttmbcr 17, 2006, Mt.~ ""orfJ c. c-orrJ'iC\. t1l1n/00'311,cfc/2.J/61/08 html cwtc.

SO Romc;Ju. II . "6 Ou1r:i~ew, 11,nng !net,"'-- HR Ptopl,

Apnl IJ. :010. hllp/ /hrprople.mons1ercomtne..,1.lrlicbi

JS2 I -1>-0u1nogeou,-hmng•prxtlrc, '>pagc:S.

SI \\,e,son, \I / . and Gogus. C I • - shal.in& 11- •1111 1 Computer An E:(ammauon of ~o Met.hods or Orpnu.u:.1

Nc"'comt'r Onen1at1on," Joumal of Appl1Ld Pl)'t'holoo 90 s ( 100S) 1018-1026 .

Sl. Gn/Teth. R w . and llom. \\ . Rrrauiing Vwurd C,.,,,,,,m, Thousand OJJ.s. CA Sage. 2001.Allcn.D. G . · DoClrpnu.adonal Scx.,JhL.11100 T1K1Jcs lnnurncc Ne~·comcr ~ IDd

Tumo,er'" Jnuma/ of Monagrmmr. Jl 2 J:?0061 237-ll/,

Cooper-Thom:i.,. II D. nnd Arxkoon. N . ·•orpr111.....i

Sooah,allon. A Field Slud) mro Sochll1111t1on Slk."C't'n 11\J Rat. lntf'n1at10NJJ Joumo( of ~lrruo,r a,uJ I\JJt'Str'U'fll. 13, 2 (2<m)

116-1 28

SJ SIIRM Wecsf) Onhne Sur,ey. Augu51 2l 2006

s.i DC'lo111e. fo/,.,u Ma,wgrm,nt Strmrg1ts lunn·, ~~ YOR Ddo,ue. 2005

SS C3S<'tO, Managmg Humm, Rtsoo,rr,

56 C:lrter, L. Carnuchael. I' . and Woods. R . "Art You ,,.,,.,

Your Talent Whrre They're t\C'CdcdT' Tafrnt lfanaft1911111

Ma.ra:mr. Junc 201 2 1.J-26 57 Ibid 58 Ibid 59 Ibid

60 Hanson. F . " Ille Tumo, er Myrh.- Worlforu MONJr,-. June 2005 .J.1...40

61 Boudreau. J W . llnd lltrger. C. J . "Dec1Jlon-Th,or,u,; l liJJI)

Anal)SIS 1\ pph<d lo EmplO)<C 5ep'1111Uon5 and Acqu1 Uoai

l o1<mal of Apph,-ll'J)~l,olog)'. 70. JJ (1 98SJ 581~12.

38 Van M:uru:n and Schtm, 'io .. ard a Theo!) of Organ1auonat

Sc-....,J.11LJIIOR .. 62 Boudreau. J w. Rrroolmg /JR. Bosron. \1A 11.,,an1 e ... tm,

Re,1e~ Press, 2010.

J9 Karnme)er-Muelkr. J D . S,mon. L S. and Roch. 8 L .

"E1hu:al Conn1u. O1\csururc Soc:i.iltza1ion. :lnd Emouon3.l

E'Uuusllon.- Journal of \fanagf'mrnt 38 (2012) 78-J.--80R

63 Dallon. A . "Applcl:>cc's Tumo,er Recipe." Vt'orl{orrt MDMgrmt111 011/111,. i\1'ty 200.5, w\lo w ~ orHorcc cornlarchho'

aruclen-WS/60 ph

t..l s.,-d~ !Llf' ltum.lfl Rc,oun:e ~lanagcmcnt. SI/RM 20/ I J0/1 lf . .rwrt Cor11al BtnrhmarA.mg Databrur (1012)

to' 0 1 ""',uJ. K anJ tlanu. S . Talrn, Mw,uirm,ni Far,book ~-JO JJrH rrar11u, and BrMhmari..J m us Talrm ~/_,,;.u;•rr1ttd. O~land, CA Bcrsln

« 11.,,-cn F •O,l'fllluhng lllc R<C11J11ing!'rottssst CDWC0rp ." U lr£/orrr M lVIOjt'mf'nl On/mr, Apnl 2007, '-'1-V.v. v.or\..for .. c.

~'-'m,,ci.llOnl(Wfc-.uurr/24185/32/inJc, h1ml

.. ,~,J , , l s 0<·r-vtmcn1 of L>bor Burc,u of L:ilJor SIJIJ'll<S, - , 00

OJ'l("run,, anJ Labor Tumo\c:r Sun c) (JOLTS)," v.~ v. bls go, fJh

e~ l s l)(p.Jnmcn1 of Labor Dtplt1mc.n1 of Labor Stllll\lt("t., , \\ h:U 1~ JOLTS')" v.v.w bls go,fJII/Jlt'-'lhal him

\I Set Gnffoch and l-lom, Rt'lommt Valu,d E.mplO)UJ

71 ,1 ir~h . J G . and Simon. 1-1 A . Orgaru:JJIIO,Lr, /'l.e~ Yor~

\\ ilc~. 1958. Gnffeth :and llom. Rrtuuung V"lu,d Cmp/o)trJ,

"4'(' JI~) Mitchell. T R , Hollom. 8 c.. Ltt, T W , :inJ Gr.n~c. T . " How 10 K«p Your 8 ~1 Employtt1· De\1dopm_g

and EiH"("ll\C Rc1rn11on Policy." Aradrm) of Mm,agrmnu Luo.to t'. IS. 4 ( ~\,,ember 2001 ) 96

J\ n~-r. L \\ . and S1ccrs. R M • "Orgam,111onal. WOJl. ;anJ

f\•~f,njl 1.,c1m m Employee Tumo,cr and Ab5entcc:1\ m,"

J's\, h,•lof1rol B"ll~1111, 80 ( 197 J) 161- 176

-3 rt 1lhr,. J M . ''Eff«u of Rcahsuc Job P rr\ ir" s on Multiple

O,,::.lll11Jll<ln,1I Outcomc5 A Mel.3-Anal)sis, .. Aradrm• of

11am1gt111rm Jo,m,al, 41 ( 1998) 673-690

.. 1 r,mr1on. M A . and Mnc-hcll. M M . " ~lnnagcmcnt Tumo,r r

J ,f'C'nrn1111l D1ffcrcnrts Bet""C'Cn Former IU'ld CulTt'flt

\l,mJga'-... l'trJtm11tl Ps)thclo8)1, 39 ( 1986) 57-69

"' I\O)t'O~. J . ·"T\Jmo\'tr Rt \ Oh·es Around Rewo.rds. Respect, and

R~1J1ttll'IC'fll\, .. Nashnllr 8111UU'u JournDI, Scptcmbc:r22. 2006. hllp //n.»h\ 1llc b11Joum1ls com/n;ashv1llt/!,tonuf2006l09,,J/

~m.11lt:-S h1ml ·t, \lcEHn, G M . and Cn._~o. W P . "Do Goo.J or Poor

l\·rf(W"~" L.c-'J \t',. A Mcta•Arul}morthc Rtboon.ship 8d\lottn

l\ rll1rrn.uKc- 311d Tumo\tr." Arodtm) of MM<Jgrmrnt Journal.

1(1 J 119871 7-IJ-762 ·- Gnlkth. R W . fl C'lm, P \V ,andG11ennrr, S ,"AMcta-Anal)m

,~· \llllX-cJcn1, and Corrcb tt < or EmrlO) ct' Tumo\C"r UJ'dl!c.

\ h.xlcrJ1or Tc,1,. anJ Rr'it";ll(h lmphc--JIIOns for the ~el l

\11lknmu111," Jo11mtil cf Managtmtnl, 16. 3 (2000) 463-188

-.. N, rnr lt·J v.uh prnmss1on rrom Al11mng R,-.--ards -.-·11h ,,~

( l1t1ni:111i: lmplo)'nttll Ix"/ 1006/l007 Strolr&ic Rtut1rd.1

N"/'<' ,-, O :001 Watson W) all Worli.l"1de For more infonna-

111 ,n. \l\ll v. at..00~)3.II C'Om - ~ \ ~r,\.sll. I • "[,11 v.1th the Click of a Mou\C E.\11 lntc"'lt'~!I

t.,1 tlith-Trch." Soriro for lftm,an RtsOlirrt Managrn1rn1, 0.1 l)('c :1W'>6. v." w Jihrm org/hn.Vht,r:iry_puhli'ihctl/n0nlC/ ( \l~_Ulb%0

'" I / -nmmnJn. E . "\Vh.11 10 As~ 8(fort' EmplO)CC'' Lr1l\t,"

I\ 1•r!for, i- Mm1agrmr,1t Onlmr. Stp(cmbcr 2005. hnp " " wv.

"1•rlr..f1,rrc \Onv'an:h1,d3111rlc/24116/9J php , 1 l PS' l7 Pr1ll<'tplcs for M:inlg.ing Po."f)k," Wor!foru

\l,111111,'.emmt 011 /111,. MO) 2005. ~\\W 1,1, orUortccoml3tChhc/

'" " rem,oJtJJ ,1 \1Jr~1J1..•1. J , " IJu\mc, s l-1f\l." \Vorlforrr Mana,s:tmt nt, Oc1ootr

1\, 0:(M')() 13 11 C,." ,1,>n,. ll A . and Duhon. D . "As\ts1lng Intended Empl0)«

U\h.J\1l1r in Lx ll l n!C'" •c-"" s," Jor,rnal of f'syrhology, 12.5

l"I') 1, 81-'JO. Gnffeth and I-lorn. Rrw,nmg \'afotd £mplo,u1

\.2 \lcmu. J, anJ La,ttle. L... . "ll's Time 10 Plug TaJcnl Lr;il.1;,''

ll111111tsJ Wr,•4 011/mr. FrhNary 2. 2005 . ""\~ bu!imr1-) \\et'L

~o!Tlll .11\'l..~Nl U1Uent/fcb200S/ca2005022_ J 650_ra004 h11n

Ch,pter 12 • \lilf1J8>"~ w .. kforce Flo" 357

85 "2007 Tr-JJmng Top I :!S.'' 7 mwmg Mogtcmt .. ·in Taknt 86 Gu1hndge. M. Komm. A D , :mil La~ ,on , E • Mak g 2()08

II S1r.u(g1c Pnon1y," Mr Kin1n Q11anrrh. Jan~1Z=ra1cnJ http //ww..., mc klnJt )quart crly com/Or1 •rn1.1:nl iO

\lak.mg_wlrnt_Ulrtllt'.£1CJ)riOrlly_2092 f s Ill 87 Subram3111:im. M . and Youndt. M A , '1'hc inO~ce o oc 0

Cap,ul on 1he T)J)C') of IM 0\311\C Capab1hurs.. Arad~,,,, 1 Manatf'mrn, Journal, 48 (2005) 450-463. BroySbcrg •. ,

6 ' NanJ.i.. A . w,d ~ ohna. N • "1'hc R1sLy Business of H1nng

Star\ ... UarwmJ Hu.unru Rn1rw. 82 ( 200,I ) 93- 100

gg Gu1hnJgc, Komni. :ind u .... wn. M~-l.ll1n~ Talc-nt :a Str1tegie Pnont) " OW C ..

b9 ltan.scn. '"Q,crh1uling the Rccru,ung Process 31 C orp

90 .. Rctc-n11on Tips from the TrfflthcS ... Busmru\VuA. OnhM.

Fcbru:ir)· 2. ~S. ~..., w bu!.incs5wC"CL comfcnrttn/con1cnl/

feh2005/ea1005012_01 I O_ca006 him 91 Su,m, G M . " A Comp,ny·s Ree,pc for Enuy-Lc, el Si~f

Ch1f'Olk ReJps Rc1i'anh b) PromoU.ng from Within." lmtJ«>r s

81.umf'J.1 DmJ). Sc-pl ~mbcr 8. 2(X)9. http://www.allbu,1nCM.COffV

labor-nnplo) ITIC':nt/hum:ut•re"lllrcC'.S-pcrsonneVI 2885825-1 html

9l l btd 9J Sec \\'hllener. E. M . Brode S E.. Koog:ud. M A • and Werner.

J M , "Managers IIS lruWUOf"\ of Tru1:c An Exchange Rdnuonsh1~

fnlmel<orl< rocUndeo,1•ndmg MM:igenaJTru'-11'orthy Bchavi0<.

Acadtn11 of ManagemrnJ Rrurw. 23. 3 (1998) SIJ-SJO

9.& KrJting, M . "Phon( 1-fomt," G1,ardum. Cktobcr 15. 2005 0 1.

9S Ibid 96 Au10<. D . Kw . L F . :u>J Krueger. A B .. "Compuung

lnt-qUall1y Ha\C Compu1rrs Ch::ingrd 1hc Labor Mark.ct?""

Q11an,r/y Journal of £,onom,rs. I 13. 4 (1998). 116'>-121J 97 NC'\ 1us, C. W .. " For Bc:tter or Worse TIK-rc Is No Place h'-e

H"'11<-Son of." San Front:isro Chrome/,. Novcmb<r 19. 2004

AJ.I. 98. ''Call Ccncrn, in the Rec Room," 811.m1tsslV,rk. January 23. 2006.

14-IS 99 fnrJman. T . nir World J, Hat, Nev. York · Farrar. Strau5 :ind

Girou, . 2005 100 Cappel li. P . " A. \larkcl-On,en Approach 10 Rcuin ing Talen1,"

In IIM\ard 8 u,1ncM Rc\le~. /Ian-an! Ou1mtss Rt,•,rw on

F11ul,nt and Kupmg thr Br,1 Ptoplr. 8 os1on H:uvo.nl 8 U5ine)S

School Pubhsh1ng, 2001, 27- SO 101 Gro" , 8 . ··Rcno\'allng llomc Oc:pot." Bcn111r.sslVrr!. ~-1arc.h 6.

2006 SO-S8 102 " Poor Health Benefits Commumcac1on Huns Rctcn1ion."

Emplo,u 8t11tfit Nrws. March 2005 18

I0J S1unnan. M C . Tm or. C. 0 . lloudn:Ju. J W .. :,nd Gerhart. B .

" Is h Won.h It 10 Win in the T1tlent War" E,aluJung lhc Uuhl)

of PcrfomUlOCe-B~ Pay ," Prrsom1rl Ps)rhofot.) . 56 (2003);

997- I0 l l JO, Amxl, -Campus C.hun: ..

105 Marquc, . J T . '1"ailor-~IJdcCo.rttrs,"' lVo rJ..foru M a11ngrnlt'nl.

Janual)• 2010: 16-21 106 Wanl:>crg.C. R . "S1op 1he Job Hopi" C/11,f £veur.,·t. I 22 (1997)

JJ-47 107. Mulllch, '"They' re l·h rcd. Now the Real Recnuting Begins "

108 Pu«cll. J • " Bu\lnc,s Slr3trg,cs and Hum:in Resource

Ma.nagemc:nl Une.L.)} Brdfcllo...,s or Stn11tgic PanncrsT·

Utml'rMI) of Bath \Vorl.mg Pu~r&nts, :?COS, ,r200.5 16

109 Hamm. S. "A PasJiion fo r the Plan.'' 8 1u11lt'uWrr.l, Augu,1

21-28. 2006 91- 94 110 M al ) ~hona. E . " Suppl)ong Labor lo Mec1 Demand."

Jn/o n11011m1Wu! . Ma.rch 21. 2005. "''" lnfoml,U10n\\CCl

com/ir,h.u-C'Cl/pnnrablcAn1dcSrc Jhtml "'nrt1ckl D= 159902302

I ~ ~ 1 1 I

358 ChJptcr I~ • ~ IJnaging Work.force Flo"

111. Ibid 11 2 Pfeffer. J.. "The Real Cost of the Yinual \Vorkforce," S1a1iford

Grad11me B11s111ess School. 1998. www.gsb.stanford.edu/ communit)/bmag/sbsm0398/featurc_ virtua lwork fo rcc.html.

11 3. F~cman. S .. and Cameron. K. S .. "Organizational Dow nsizing: A Convergence and Reorientation Framework ," Orga11iw tio11 Science. ➔ (1993): 1~29.

11 ➔. Da11a, D. K .. Guthrie. J. P .. Basui l, D .. and Pandey, A .. "Causes and Effects of Employee Downsizing: A Review and Synthesis." Journal of Management, 36 (2010): 28L-348.

115. --serving the American Public: Best Proctlces in Downsizing.'' National Perfon11a11ce Review. September 1997, hup://govinfo. 1.i brary. u nt.cdu/ npr/1 i brary / papers/bench mrk/do wns i ze. ht m I #7.

116. Ibid. 117. Muirhead. S .. "Compassionate Downsizing: Making the

Business Case for Educatlon and Training Services," The Conference Board/A cross the Board (January-February 2004).

118. Greenhalgh. L., and Jick, T. D .. "The Relatlonshi p Between Job Lnsecuriry and Turnover. and Its Differenlial Effects on Employee Quality Level," 1979, Paper presented :u the annual meeting of the Academy of Management, Atlanta: Sutton, R. I.. "Managing Organi zational Death," H11ma11 Resource Ma11agemem. 22 (1983): 391-412; S1aw, B. M., Sandelands. L. E .. and Dutton, J. E .. "Threat-Rigidity Effects in Organizational Behavior: A Mullilevel Anal ysis," Administratfre Science Quarterly, 26 ( 1981 ): 501-524.

119. Brockner. J.. Davy, J.. and Caner. C.. "Layoffs. Self-esteem, and Survivor Guilt Moli vatlonal. Auirudinal, and Affectlve Consequences," Organi:ational Behavior and H11ma11 Decision Processes. 36 (1985): 229-244; Brockner. J., Greenberg, J., Brockner, A .. Bonz. J .• Davy. J., and Caner, C .. "Layoffs. Equity Theory. and Work Motivation: Further Evidence for Lhe Impact of Survi vor Gui IL" Academy of i\-'lanageme/11 Jo11mal. 29 (1986): 373-384.

120. Greenha.lgh. L., "Maintaining Organizational Effectiveness During Organizatl onal Retrenchment." Journal of Applied Behai·ioral Science. 18 ( 1982): 155-170.

121. Greenberg. E. S .. Grunberg, L.. Moore, S .. and Silora. P. B., Turbulence: Boeing and 1he State of .American Workers and Manages. New Haven, CT: Yale University Press. 20 10.

122. Kucynski. S .. ''Sweetening the PoL" HR Maga:ine. March 2000: 60-64.

123. Cascio, W. F .. Young. C. E., and Morris. J. R., "Financial Consequences of Employment-Change Decisions in Major US Corporations," Academy of Management Jo11rnal. 40. 5 ( 1997): 11 75-1 189: De Meuse. K. P .. Bergmann. T. J .. Vanderheiden. A .. and Rora ff. C. E .. "New Evidence Regarding Organizat ional Downsizing and a Firm's Financial Performance: A Long- Term Analysis," Journal of Managerial lss11es. 16. 2 (2004): 155-1 77: Zyglidopoulos. S. C .. "The Impact of Downsizing on the Corporate Reputalion for Social Performance." Journal of Public Affairs. 4, I (2004): 11 - 25.

124. See Cascio, W. F.. and Wynn. P .. "Managing a Downsizing Process.'' H11111a11 Resources Ma11age111e111. 43. 4 (Winter 2004): 425-436.

125. Boroson. W., and Burgess, L.. "Survivors' Syndrome," Across the Board. 29. 11 ( 1992): 41-45.

126. Davis, J. A., "Organizational Down sizing: A Review of Li1cn11ure for Planning and Research," Jo11 mal of Healrlrc<ire Ma11age111e111, 48, J (2003): 181-199.

127. "Views from the Top.'' HR Maga:.ine, November 2006. www shrm.org/hrmagazine/articles/ 1106/1106ceoex. ·

128. In "Serving the American Public: Best Practices in Downsizi ng." National Performance Review. September 1997, hllp://govinfo. library.un1.cdu/npr/library/papc rs/bench mrlc/downsizc.h1m1#7,

129. Ibid. I JO. Alig11i11g Rewards wi1h the Cha11gi11g Employment Deal:

2006/2007 Strategic Rewards Report, Watson Wyatt Worldwide 2007: Hea1hlicld. S. M.. ''Before You Do a Workforc~ Reduction." About.com. 2013. http://humanresourccs.abou1. com/od/layoffsanddownsizing/bb/cu1_workforce.h1m; Swanz. M .. " Best Practlces in Downsizing," Monster.com. 2013. hup:// hiring.monsler.ca/hr/hr-best-practices/workforce-management/ employee-re1ention-s1ra1egies/s1aff-downsizirig-caaspx.

13 1. Flanagan. D. J .• and O'Shaughnessey, K. C.. "The Effect of Layoffs on Firm Reputation." Joumal of Manageme111. 31. 3 (2005): 445-463.

132. 'The Worker Adju stmem and Retraining Notification Act," U.S. Departmem of IAbor Employment and Traini11g Administration Fact Sheet. www.dolcta.gov/programs/fac1shl/wam.h1m.

133. In "Serving the American Public: Best Practices in Downsizing." National Perfom,a11ce Review.

134. Beasley, D .. "Wynn Resorts Cuning Salaries, Bonuses 10 Save Jobs.'' Reuters. February 3, 2009. http://www.reuters.com/ article/idUS N0354442320090204.

135. Lind, E. A., "Litigation and Claiming in Organiz.ations: Antisocial Behavior or Quest for Ju stice?"' In R. A. Giacalone and J. Greenberg (eds.). Antisocial Beha vior in Orga11i:a1to11s. Thousand Oaks, CA: Sage, 1997. 15~171.

I 36. Panaro. J.. "Avoiding Litigati on in Hiring and Termination Si1ualions," Association Ma11ageme11t. August 2003. www. asaecenter.org/Pu bl ica1ionsResources/ AM Mags idebarDetai I. cfm?rtemNumber-9505; Larson. A.. "Wrongfu l Termination of Al Will Employment," Expenlaw. September 2003. www. expertlaw.com/l.ibrary/cmployment/a1_will.html.

137. CCH, "Releases and Severance Agreements," Business Owner's Toolkit, www.toolkit.cch.com/lext/P05_8243.

138. Ibid. 139. Th.is sect.ion is based on Lynn. J., "The Good Fire." £111reprene11r

Magazine. March 2000. www.entrepreneur.com/magazine/ enu-eprcneur/2000/march/19230.html: Johnson, D. L.. King. C. A .. and KurulZ. J. G., "A Safe Termination Model for Supervisors.'' HR Maga:,ine, May I 996, hllp://findarticlcs. com/p/articles/mi_m3495/is_n5_ v4 I /ai_ 183 72603/pg_ I.

140. Finnegan, R.P .. Rethi11ki11g Rete111io11 in Good Times and Bad; Finnegan, R .. "On-Board to Retain."

141. "Corporate Profile.'' Indymac Bank, h11p://inves1ors.indymac bank.com/phoenix.z.htrnl?c= I I 8924&p=irol-irhome,

142. Hansen, "The Turnover Myth." 143. Ibid. 144. Ibid. 145. Babcock. P .. "Find Whal Workers Want," HR Maga1.111e. April

2005: 50. 146. Hansen. "The Turnover Myth."