Managing Employee Retention and Separation

Managing Employee Retention and Separation - Managing...

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Unformatted text preview: Managing Employee Separation and Retention Keeping the good ones and throwing the rest back. HRM – The Big Picture S t r a t e g y L e g a l I s s u e s Focus of this Section Understanding what HR can do to help keep good workers at your organization Employee retention Understand how to deal with employees who need to be removed from the organization Employee separation Retention and Separation Retention Retaining good employees critical to organizations Task performance, citizenship performance Cost of rehiring and retraining Related to organizational performance Companies often ignore this, assume good workers will stay Separation Terminating workers also critical for org. Costs Associated With Turnover Of Computer Programmer Separation costs 1. Exit interview cost = $60 2. Administrative and record-keeping action = $30 Total separation costs = $60 + $30 = $90 Replacement costs 3. Advertising for job opening = $2,500 4. Preemployment administrative functions and record-keeping action = $100 5. Selection interview = $250 6. Employment tests = $40 7. Meetings to discuss candidates (salary and benefits of managers while participating in meetings )= $250 Total replacement costs = $2,500 + $100 + $250 + $40 + $250 = $3,140 Training costs 8. Booklets, manuals, and reports = $50 9. Education = $240/day for new employee’s salary and benefits x 10 days = $2,400 10. One-to-one coaching = ($240/day/new employee + $240/day/staff coach or job expert) x 20 days = $9,600 11. Salary and benefits of new employee until he or she gets “up to par” = $240/day for salary and benefits x 20 days = $4,800 Training costs = $50 + $2,400 + $9,600 + $4,800 = $16,850 Total turnover costs= $90 + $3,140 + $16,850 = $20,080 Strategic Retention/Separation Employee Turnover Retention and separation focus on managing turnover Employee exit from organization Turnover can be voluntary or involuntary...
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Managing Employee Retention and Separation - Managing...

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