Chapter 13Staffing System Administration

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New EmployeeOrientation and Socialization

Orientation Socialization

Content People Performance proficiency Organization goals and values Politics Language History

Delivery

Retention Management

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

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Nature of the Problem

Employee retention can contribute to organizational effectiveness

Turnover is not only costly but may be beneficial

Focus of retention strategies Number of employees retained and Who is retained

Turnover is inevitable Approach to retention management

Gather and analyze employees’ reasons for leaving

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Types of Employee Turnover - Voluntary -- Employee Initiated

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Types of Employee Turnover -Involuntary -- Organization Initiated

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Causes of Voluntary Turnover

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Causes of Turnover:Discharge and Downsizing

Discharge turnover Mismatch between job requirements and KSAOs

Employee fails to follow rules and procedures Unacceptable job performance

Downsizing turnover Mismatch in staffing levels which leads to an

overstaffing situation Factors related to overstaffing

Lack of forecasting and planning Inaccuracies in forecasting and planning Unanticipated changes in labor demand and/or supply

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Measurement of Turnover: Formula

Turnover rateNumber of employees leaving

average number of employees x 100Data and decisions

Identify time period of interestDetermine type of employees that countDetermine method to calculate average

number of employees over the time period

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Measurement of Turnover:Breakouts and Benchmarks

Breakouts Analysis of turnover data aided by deciding on

categories of data Type of turnover Type of employee Job category Geographic location

Benchmarks Internal - Trend analysis External - Compare internal data with external data

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Measurement of Turnover:Reasons for Leaving

Important to ascertain, record, and track reasons why employees leave

Tools Exit interviews

Formal, planned interviews with departing employees Postexit surveys

Surveys sent to employees soon after their last day Employee satisfaction surveys

Surveys of current employees to discover sources of dissatisfaction which may become reasons for leaving

Results can provide information to pre-empt turnover Require substantial resources

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Guidelines: Conducting Exit Interviews

Need to decide before interviews – who will results be communicated to

Interviewer should be a neutral person who hasbeen trained in how to conduct exit interviews

Structured interview format should contain questions about unavoidable and avoidable reasons for leaving

Interviewer should prepare by reviewing interview format and interviewee’s personnel file

Interview should be conducted in private, before employee’s last day

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Measurement of Turnover:Costs and Benefits

Costs and benefits can be estimated for each of the three turnover types

Types of costs Financial Nonfinancial

Some costs and benefits can be estimated financially

Nonfinancial costs and benefits may outweigh financial ones in importance and impact

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Major Turnover Costs and Benefits

Costs of turnover Separation costs

Staff time and loss of productivity Replacement costs

Recruiting and selecting new employee Training costs

Teaching new employees the job

Benefits of turnover Potentially better new employees Short term labor cost savings Opportunities to restructure work units

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Most and Least Effective Retention Initiatives

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Decision Process for Retention Initiatives

Do We Think Turnover Is a Problem?

How Might We Attack the Problem?

What Do We Need to Decide?

Should We Proceed?

How Should We Evaluate the Initiatives?

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Guidelines for Increasing Job Satisfaction and Retention

Extrinsic rewards Rewards must be meaningful and unique Rewards must match individual preferences Link rewards to retention behaviors Link rewards to performance

Intrinsic rewards Assign employees to jobs that meet their needs Provide clear communication Design fair reward allocation systems Ensure supervisors provide a positive environment Provide programs to enhance work-life balance

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Alternatives

Approaches to make internal alternatives more desirable than outside alternatives Internal staffing

Encourage employees to seek internal job opportunities Provide attractive internal options outside of traditional

internal staffing system Responding to external job offers entails developing

appropriate policies Decide whether to provide counteroffers or not Determine types of employees to provide counteroffers Decide who will develop counteroffer and nature of

approval process