3. Turnover
What is Turnover?
The rate at which employees leave a firm.
Types of Turnover
Voluntary Separation
Involuntary Separation
Cost of Turnover on a firm
Tangible Costs: Cost of recruiting process, cost of wages while new employees are oriented
& trained
Intangible Costs: Cost of lost productivity, cost of rework for errors, coaching cost
Turnover isn’t always bad! (e.g. low performing employees leaving the job)
4. Managing Voluntary Turnover
Managing Voluntary Turnover:
a) Identifying the Cause
b) Addressing the cause
a) Causes: why high-commitment/ top performing employees leave?
• Salary
• Promotional opportunities
• Career development
• Work-life balance
• Stress
• Health care benefits, Retirement benefits (pension plan)
• Unfairness
• Not having their voices heard
• Lack of recognition
• Relationship with Supervisor/ manager
5. Managing Voluntary Turnover
b) Addressing the cause: Retaining Employees (Talent Management)
Comprehensive retention Plan
• Identify Magnitude of the problem and the Issues: Tracking Turnover, Exit Interview, Open-
door policies & hotlines
• Selection
• Compensation
• Professional Growth: Training & Career development program
• Fair Appraisal System
• Career Direction
• Meaningful Expectations of employer (high-performance work system practices)
• High-Involvement Work Practices
• Recognition
• Culture & Environment
• Work-life balance
• Use Analytics : Evidence-based management
• Employee Engagement
6. Managing Turnover
Pre-emptive action to obviate expected Turnover: A Case Study
IBM’s New Work Force
Challenge: Fast Technological Change- Needed work force with different skills than what the
current work force had.
Options:
Option-1 Allow voluntary turnover and plan layoffs
Option-2 On demand Staffing Strategy: Talent Management
Selected: Option-2
Imparted Training to existing staff for new Technology (Expenses: $700 million per year)
Steps to implement option-2
Identify needed skills
Spot the gaps
Train & Assess
Advantage of option-2:
• IBM was ready to offer evolving technological services to its clients without new
recruitment
• It improved employee retention (minimize layoff and turnover)
7. Absenteeism
What is Absenteeism?
It is can be defined as unauthorised absence from work. It reduces the number of employees
available for work.
Causes of Absenteeism:
Job Stress & Burnout
Alcoholism, substance abuse and smoking
Depression
Health issues
Inequality
Escalating conflict
Mismatch between required and actual skill
Lack of child care facilities
8. Absenteeism
Addressing Absenteeism:
Well designed selection, orientation and training
Skill development
Job Enrichment
Job Sharing
Incentive Payments
Physical Health Care/ Medical benefits
Child care facilities
Employee Assistance Programme
Job Compatibility Questionnaire
Employee Engagement
9. Job Analysis
What is job Analysis?
Provides information about jobs currently being done and the knowledge, skills, and abilities
that individuals need to perform the jobs adequately.
Job Analysis Methods:
Observation method: Data is gathered by watching employees work.
Individual Interview Method: Meeting with an employee to determine what his job entails.
Group Interview Method: Meeting with a no. of employees to determine what their jobs entail.
Structured Questionnaire Method: Specifically designed questionnaire on which employees rate tasks
they perform in their jobs.
Technical Conference Method: Technique that involves extensive input from the employee’s supervisor.
Diary Method: method requiring job incumbents to record their daily activities.
10. Quantitative Job Analysis Techniques
POSITION ANALYSIS QUESTIONNAIRE (PAQ):
PAQ allows HRM to scientifically and quantitatively group interrelated job elements
into job dimensions. The 194 items (such as “written materials”) each represent a basic
element that may play a role in the job and are grouped within 6 major divisions and 28
sections”
1.Information input
2.Mental processes
3.Work Output
4.Relationship with other people
5.Job context
6.Job related variables
https://www.erieri.com/paq
Sample Q&A:
12. Purpose of Job Analysis
Analytical job analysis process generates
three tangible outcomes:
Job Descriptions: A statement indicating what a job
entails.
Job Specifications: minimal acceptable qualifications
incumbents must possess to successfully perform the
essential elements of their jobs.
Job Evaluations: Specifies the relative value of each
job in the organization.
13. Job Design
The way that the position and the tasks within that
position are organized. It describes:
what tasks are included;
how and when the tasks are done
what order the tasks are completed
Why required?
Problems arise when employees don’t feel a sense of
accomplishment after completing the tasks. To prevent this, the job
needs to be designed so that the tasks have a clear purpose that
relates to the company mission. Good job design incorporates tasks
that relate to organizational goals and values into every job
description.
14. JOB REDESIGN
Process of rearranging tasks and responsibilities to
better align roles with the changing environment inside
and outside the organization.
Structured approach in 5 phases:
Changing reality
Individual job analysis
Core competency analysis
Job redefining
Redesign implementation
16. Employee Engagement
What is employee engagement?
It refers to being psychologically involved in, connected to, and committed to getting one’s job
done.
Poor Attendance, Voluntary Turnover, and Psychological withdrawal often also reflect
diminished employee engagement.
Engaged Employees
Experience a high level of connectivity with their work tasks
Work hard to accomplish their task related goals
Higher revenue per employee, Drop in turnover