SEPARATION PROCESS
Human resource management
Redundancy in organizations
reduction in need for employees in the business. A
dismissal is by reason of redundancy only when it is
caused by such a reduced need.
This reduced need can arise in many ways, for example
because of:
disposal of part of the business, or
relocation of the business, or
the introduction of new methods of work that reduces the
number of employees needed.
Redundancy in organizations
An employee may also be dismissed by reason of
another employee's redundancy. For example, employee
A's job disappears because the place of work is closed
but it is employee B who is dismissed. The employer
wants to retain A. Employee B's dismissal is often called
a bumped redundancy but remains in law a redundancy.
Particularly in large-scale redundancy programmes,
bumped redundancies may be common. Redundancies
can also be voluntary. The essential point is to be
satisfied that the total number of redundancies matches
the reduced need for employees.
Separation
Separation means cessation of service or
agreement with the organization for one or
other reason. The employee may be
separated from the payroll of the company as
a result of
Resignation
Discharge & Dismissal
Suspension & Retrenchment
Layoff
Employee Separations
An employee separation occurs when an
employee ceases to be a member of an
organization.
The rate of employee separation in an
organization, the turnover rate, is a measure of
a rate at which employees leave the
organization.
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Human Resource Replacement Costs
Costs
Costs
RecruitmentCost
Recruitment Cost SelectionCost
Selection Cost TrainingCost
Training Cost SeparationCost
Separation Cost
Advertising
Advertising Interviewing
Interviewing Orientation
Orientation SeparationPay
Separation Pay
Direct
Direct
CampusVisit
Campus Visit Testing
Testing Benefits
Benefits
TrainingCost
Training Cost
Unemployment
Unemployment
RecruiterTime
Recruiter Time ReferenceChecks
Reference Checks TrainersTime
Trainers Time
InsuranceCost
Insurance Cost
LessProductivity
Less Productivity
SearchFirm
Search FirmFees
Fees Relocation
Relocation ExitInterview
Exit Interview
DuringTraining
During Training
Outplacement
Outplacement
VacantPosition
Vacant Position
Benefits of employee separations
Reduced labour costs
Replacements of poor performances
Increased innovation
The opportunity for greater diversity
Types of employee separations
Types of employee separations
Voluntary Involuntary
Quits Layoffs
Retirements Discharges
Retrenchment
Involuntary separations
It occurs when an employer decides to terminate its
relationship with an employee due to
Economic necessity or
A poor fit between the employee and the organization.
Voluntary separations
A separation that occurs when an employee decides, for
personal or professional reasons to end the relationship
with the employer.
Types Of Voluntary Separations
There are two types of voluntary separations:
Quits
Retirement
Types Of Involuntary Separation
There are three types of involuntary separations
Discharge
Layoff
Retrenchment
Discharges or dismissals
Discharge: Employer discovers that it is no more
desirable to keep an employee any longer, also called as
termination should be avoided as far as possible.
dismissal takes place when mgmt decides that there is a
poor fit between an employee and the organization. It has
to supported with sufficient reasons:
Excessive absenteeism
Serious misconduct
False statement of qualification
Theft of company’s property
Layoffs
Layoff means the “failure”, “refusal" or
“inability” on the part of any employer to give
employment to any number of workmen on
account of shortage of raw material,
accumulation of stock, breakdown of machinery
or for any other reason. It is temporary
separation, it may be for a definite period or
may extend if employer is unable to estimate
when he can recall.The employee has to be paid
compensation at the rate of half of wages
Layoffs
It may be due to:
Shortage of coal, power , raw material
Accumulation of stocks
Breakdown of machinery
For any other reason
The lay off can be on the basis of merit or
seniority. After lay off recalling in case of
resumption of normal activity is determined by
seniority
Retrenchment
Retrenchment means “discharge of surplus labour
or staff” by the employer on account of long period
of layoff, or closure of part of plant or improved
machinery or automation of machines or similar
other reasons. It is the termination of services of
employees where they are sent home for good
unlike a layoff where they stay attached to the
company. It is different from dismissal as it is
forced on both employer and employee and it is for
a group where as dismissal is one or two people.
Rightsizing
It means reducing the size of workforce or
increasing the employee strength to desired
level. In reality it means downsizing the
employee strength through planned
elimination of jobs.
Downsizing is triggered by ; company’s
bottom line is threatened; technological
advancement renders people redundant;
organizational restructuring
Effective handling of downsizing
Consider the human element
Make decisions of who goes or not
judiciously.
Delay any pay hikes
Freeze hiring
Restrict overtime
Retrain or redeploy
morale
Resort to across the board pay cuts
Implement early retirement plans
Engage part time employees
Switch to job sharing
Downsizing: Managerial Perspective
Who should be laid off?
How much notice?
How to provide security during layoffs?
How/when to communicate to those let go,
media, “survivors”?
How to best manage “survivors”?
How can we help separated employees?
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Impact Of Layoff
Effects the morale of remaining employees
Regions economic vitality
Entire community suffers
Investors are affected
company’s image
Difficult to attract & recruit highly skilled
employees
Implementing A Layoff
Notifying employees ( before 7 days )
Developing layoff criteria
Communicating to laid off employees
Coordinating media relations
Maintaining security
Reassuring survivors of layoff
Managing Layoffs
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Alternatives to layoffs
Employment policies
Reduction through attrition
Hiring freeze
Changes in job design
Transfer
Relocation
Job transfer
Training
Outplacement
Outplacement assistance is a program created to
help departing employees find jobs more rapidly
by providing the with training in job-search
skills.
Goals are:
To reduce the morale problems of laid off and “surviving”
employees
To minimize litigation by separated employees
To assist separated employees in finding comparable jobs
ASAP
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Outplacement
It is an HR program created to help separated
employees deal with the emotional stress of job
loss.
Goals of outplacement
Reducing the morale problem of employees who
are about to be laid off.
Minimizing the amount of litigation initiated by
separated employees
Assisting separated employees in finding new
jobs
