Human Resource Management

1. Human Resource Management By Laura Portolese Dias

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3. Chapter 7 Retention and Motivation

4. Learning Objectives Be able identify the difference between direct and indirect turnover costs. Describe some of the reasons why employees leave. Explain the components of a retention plan.

5. The Costs of Turnover • Cost of turnover can range from 20-200% of the employee’s salary • Turnover • The loss of an employee • Involuntary turnover • Employee has no choice in termination • i.e., employer initiated due to non-performance

6. The Costs of Turnover Calculating turnover Separations during the period/total number of employees x 100 = % of turnover

7. The Costs of Turnover

8. The Costs of Turnover • Examples of turnover costs • Recruitment of replacements • Administrative hiring costs • Lost productivity associated with the time between the loss of the employee and hiring of replacement • Lost productivity due to a new employee learning the job • Lost productivity associated with coworkers helping the new employee • Costs of training • Costs associated with employee’s lack of motivation before leaving • The costs of trade secrets and proprietary information shared by the employee who leaves • Public relations costs

9. The Costs of Turnover

10. The Costs of Turnover

11. Learning Objectives Be able to discuss some of the theories on job satisfaction and dissatisfaction. Explain the components of a retention plan.

12. Retention Plans • High Performance Work Systems (HPWS) • Set of systematic practices that create an environment where the employee has greater involvement and responsibility for the success of the organization • A strategic approach

13. Retention Plans

14. Retention Plans Progression of Job Withdrawal

15. Retention Plans • Hawthorne Studies • Conducted in 1927-1932 • Designed to see how physical and environmental factors affected motivation • Lighting and break times • Research found that worker improvement occurred no matter which experiments were performed • Workers were happy to receive attention • This was the start of research on motivation at work

16. Retention Plans Maslow’s Hierarchy of Needs

17. Retention Plans • Hertzberg Two-Factor Theory • Studies determined which aspects at work caused satisfaction or dissatisfaction • Resulted in motivation factors and hygiene factors

18. Retention Plans • McGregor • X-Y Theory • Starting point to understanding how management style impacts motivation • Carrot and Stick approach • “Stick” is used to poke and prod “if you don’t increase sales by 10%, you will be fired” • Carrot approach offers a reward “If you increase sales by 10%, you will receive a bonus”

19. Retention Plans • Sources of Employee Satisfaction Data • Exit interviews • Job Descriptive Index (JDI) Survey

20. Learning Objective Explain the strategies and considerations in development of a retention plan.

21. Implementing Retention Strategies • Salaries and Benefits • Standard process • Pay communication strategy • Paid time off

22. Implementing Retention Strategies • Training and Development • Allows employees to experience growth • Performance appraisals • Formalized process to assess how well an employee is performing • Can be used as goal-setting opportunities • Succession planning • Allows employees to see a “path” for job growth

23. Implementing Retention Strategies • Flextime, telecommuting, sabbaticals • Ability to work from home or flexible can entice employees • Management training • Training managers to be better managers • Conflict management and fairness • Fairness is a perception • Procedures and consistency are key

24. Implementing Retention Strategies • Job design, job enlargement, and empowerment • Designing a more rewarding job, adding duties to help with growth, and allowing employees to make decisions • Pay-for-performance strategies • Employees are rewarded for achieving set objectives • Work-life balance • Ensuring employees have satisfying home and work lives

25. Implementing Retention Strategies • Other Strategies • On-site daycare or daycare assistance • Gym memberships or on-site gyms • On-site dry cleaning drop-off and pickup • Car care, such as oil changes, on-site once a week • On-site yoga or Zumba classes • “Summer Fridays,” when all employees work half days on Fridays during the summer • Various support groups for cancer survivors, weight loss, or caring for aging parents