Chapter 6
Chapter 6
Employee separations
2
Costs
Recruitment costs
Selection costs
Training costs
Separation costs
3
Benefits
Reduced labor costs
Replacement of poor performers
Increased innovation
Greater diversity
4
Question
When do you think separations are costly?
When do you think separations are beneficial?
5
Types
• Voluntary
• Quit: any time for any reason
• Retirement: end of career with age
• Involuntary
• Discharge: poor performance and cultural fit
• Layoff: strategic or environmental change
6
Question
What is the difference between discharge and
layoff?
7
Managing early retirements
Restrict eligibility
Modify retirement policies
Develop provisions to hire back
Treat senior and younger employees equally
8
Alternatives to layoffs
Changing employment policies
Changing job design
Changing pay and benefits policies
Training
9
Question
Which alternative would you employ to avoid
layoffs? Why?
10
Implementing layoffs
Notifying employees
Developing layoff criteria
Communicating to laid-off employees
Coordinating media relations
Reassuring survivors of the layoff
11
Question
Which criterion, seniority or performance,
would you use in lay-off decisions? Why?
12
Outplacement
Helping separated employees deal with the
job loss and find a new job
Emotional support
Job-search assistance
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