BUS 481 Chapter Notes - Chapter 14: Work Unit, Severance Package, Job Performance
Chapter 14: RETENTION MANAGEMENT
Retention = turnover
When an employee with poor KSAOs leaves, an opportunity arises to find a more suitable replacement.
When an employee with high KSAOs leaves, the organization may have trouble finding a suitable
replacement.
Do not simply throw rewards to employee to decrease turnover, but design and implement rewards in a
clear way.
Try to retain high value employees.
1. TURNOVER AND ITS CAUSES
a. Nature of the Problem
• Costs and benefits of retention and its design must be analyzed.
• Retention must be tackled realistically since some amount of employee
turnover is inevitable.
b. Types of Turnover
• Voluntary: avoidable vs. non avoidable.
o Avoidable turnover potentially could have been prevented by certain
organizational actions, such as a pay raise or a new job assignment.
o Unavoidable turnover represents employee quits that the
organization probably could not have prevented, such as people who
quit and withdraw from the labor force through retirement or by
returning to school, or career problems, child-care and elder-care.
• Involuntary: discharge vs. downsizing.
o Discharge turnover aimed at the individual employee, due to
discipline and/or job performance problems.
o Downsizing turnover typically targets groups of employees and is
also known as a reduction in force (RIF).
c. Causes of Turnover
• Voluntary: depends on desirability of leaving (due to poor person/job match or
person/org. match, differences in desired rewards, personal, non job reasons);
o perceived ease of leaving (a sense of lack of barriers to leave and finding
a new job, depends on labor market conditions, the better they are for
the employee the more likely he leaves); and
o on alternatives available for the employee (promotion, transfer,
reloatio alteraties ay lesse or eliiate the eployee’s
intentions to quit).
• Discharge due to extremely poor person/job matches, particularly with job
requirements and KSAOs, at intolerable levels.
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Document Summary
When an employee with poor ksaos leaves, an opportunity arises to find a more suitable replacement. When an employee with high ksaos leaves, the organization may have trouble finding a suitable replacement. Do not simply throw rewards to employee to decrease turnover, but design and implement rewards in a clear way. Hriss are designed to process and track employee departures, so data are often readily available regarding when, where, and even why employee turnover is occurring. It is also useful to benchmark turnover data in order to have comparative statisti(cid:272)s that (cid:449)ill aid i(cid:374) i(cid:374)terpretatio(cid:374) of the orga(cid:374)izatio(cid:374)"s tur(cid:374)o(cid:448)er data. Internal benchmark = looks: reasons for leaving. It is important to track the various reasons why employee quit. Employee satisfaction survey: good way to discover the types of job rewards that are most dissatisfying to employees and might therefore become reasons for leaving.