Employee separation
December 17, 2011 18 Comments
why do you think employee separation is important and what are the different strategies?
Shiraz is an international facilitator, corporate trainer and coach. He has worked with professionals of US, UK, Australia, Singapore, Indonesia, Nepal and Africa. He has spoken and facilitated sessions to local and foreign diplomats including (Britain foreign minister, Britain high commissioner), Global CEO, Regional Director, Vice Chancellor, Deans, Executive Director, Institutional and departmental heads. He has also spoken to audiences of leading business schools of Pakistan including LUMS, IBA, CBM and SZABIST. He has trained and taught numerous business professionals.
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Employee separation refers to a situation when an employee gets separated from the organization where he/she is employed.
This can happen under following situation:
Resignation: Employee decides to leave the organization, normally this happens when an employee is switching over to another job with better pay , benefits and possibly better working environment, or it may be due to any reasons like starting off your own business or any other personal reason. The employee serves a written notice to an employer when he has decided to leave the organization , giving a prior notice.
Absconding : Refers to a situation when the employee leaves the organization without tendering his resignation or following the proper process of separation. The organization may publish a termination notice publicly in a news paper to inform public at large that the absconding employee is no more a part of the organization and to have evidence in order to defend any possible claim in future filed by the absconding employee claiming for unjust dismissal.
Termination: This happens when the contract of employment is terminated from the employers side. This may be due to employees under performance , or may be a disciplinary action taken against him for theft or undesirable act done in the organization, normally termed as being “fired” . Or it may done during economic recessions when the businesses are down sizing which is termed as ” layoff”.
Separation Under Mutual agreement: A mutually agreed date may exist in the contract of employment on which the employee will be separated from organization, this normally exist in project based employment contracts. This is also seen under certain professions which specifies a age after which the employee cannot serve, example airlines have such contracts with pilots. Or at times when employees are being laid off, the employers might convince employers to separate under such mutual agreements having a win- win situation for both the parties in which a lump sum settlement amount is paid to the employee by employer, this is termed as golden handshake or golden parachute at times.
Importance of employee separation:
Employee separation is a real challenge which human resource department has to face, which needs to be handled strategically. Legal complications may arise ranging from lawsuits for unfair dismissal to harassment at work place leading to a forced resignation. During recession downsizing may make the organization competitive but talent shortages and hostile environment are likely to occur at work place. Line managers , HR department and head of departments will all be involved during the separation process to minimize the impact on the organization ensuring organization operates as it did earlier. All business partners will have to be informed that such employee is no longer representing the organization. Laptop , process manuals , cell phone and ID / attendance cards etc will all be seized from the employee being separated.
The work of human resource may not end here , incase of termination under layoff, the human resource department may be obliged assist the employee in finding another job or may be obliged to adjust them in any of Groups sister companies incase they have any room. They may also extend some career advise to departing employees under mutually agreed separation.
by : Muhammad Fahad , ID : 11038
Employee separation:
Employee separation is when an employee leaves the organization. The separation occurs when the employment relationship is ended. Staffing is an ongoing process it never stops even employees are hired. The employer can initiate separation decisions as discharges and layoffs, but the employees as quits or retirements can also initiate separation. Determining the quality of the retained work force, it needs to be avoided to view employee separations as a problem.
Strategies of separation
Reductions-in-force
Turnover
Retirements
Employee separation process, if not handled in an efficient manner, can lead to various legal complications. Hence, is one of the most crucial functions / processes of HR Department. Broadly speaking, the separation between employer and employee is normally due to the following reasons:
1) Resignation – Employee decides to leave the organization.
2) Termination – Employer decides to break the contract of employment. This is more often related to being fired or laid off.
3) Absconding – When the employee decides to leave the organization without tendering his resignation or following the proper process of separation.
Whatever you decide, employee separation is done to either replace the position or eliminate it completely (this is referred to as eliminating the layers of the organization). Some of the reasons why employee separation takes place are as following:
a) Merging of two or more firms
b) When Company goes at loss
c) To reduce employee costs
d) Low productivity
e) Change in management
f) Economic crisis
g) Strategy changes
h) Outsourcing
The STRATEGIES for employee separation at employers’ disposal are broadly divided into two:
- Voluntary Separations
- Involuntary Separations
Voluntary Separations:
1) Voluntary separations includes tactics such as Quits and Resignation. This usually occurs due to job dissatisfaction and attractive or better alternatives.
2) Another separation tactic occurs with Retirements this usually is also termed as end of ones career. The strategy involved here is known as Early Retirements. For example Handsome golden handshakes and hefty incentives are offered that compel the employees to part from the organization.
Involuntary Separations:
1) Sometimes employees are discharged from the organization. (You can understand this by the term when the employers states that you are fired) This usually is the consequence of the following reasons: Poor Fit, Unacceptable Behavior, Serious Misconduct, etc.
2) Another strategy for employee separation is by Laying off. This is more famously known as Downsizing & Rightsizing. This underline reducing the overall size, scope, or scale of the business and/or reduction in number of employees. The reason for this are Company’s environment/strategy, Reduced Product demand, Changing technologies, Merger & Acquisitions, Pink Slip Management (Employee’s Termination Notice), etc.
Some points to keep in mind when using employee separation strategies are as below:
A) Counseling and reasoning must be given to the terminating employees. Moreover, the company should have some steps to secure the remaining work force who are called as the survivors. It was important that the survivors remained motivated and committed to the company. These ways include (A) stress and anger management sessions, (B) Proper reasoning of this downsizing and (C) promise the survivors with their job security.
B) Some services should be provided to laid-off or separated employees to help them find other jobs. Some outplacement assistance sessions and other training program should be undertaken. Outplacement assistance is: a program in which companies help their departing employees find jobs more rapidly by providing them training in job-search skills.
C) Strategies should be made in order to protect the company from any sabotage or theft by the departing employees who had been separated. Chances are some of the very few terminated heartbroken employees will misuse company’s assets, even if they were as small as sample pencils, to show their anger towards the company.
Conclusion:
Downsizing needs to be done very diligently! If not done in the right manner may be the reason for the loss of the most important asset of the company – its human resource and consequently this will lead your organization to overall failure, from where there is no coming back -shutdown! Hence it is very important to have a proper strategy for downsizing.
Employee Separation is the process of ensuring that an employee who quits the company is exited in a structured and orderly manner.
Typically, the employee separation process proceeds along two parallel tracks. One involves the employee and the manager and is concerned with the handover of work and other tasks. The other track is by the separations team and deals with the employee benefits accruing as a result of separation as well as other benefits like Provident Fund, Gratuity etc.
The HR manager is needed at all steps of this process and in the final exit interview that is conducted to assess the reasons for the employee leaving the company and taking the employee’s views on work and the company in general as well as any “de-motivating” factors that might have caused the employee to resign.
strategies:
Resignation
Retirement
layoff
Employee separation is a very crucial function of HR in any organization, because if it is not handled carefully legal complications may arise. Not only that it will also hurt company’s reputation in the eyes of future employees and can even demotivate the current workforce.
The employee separation can either be voluntary or involuntary.
Voluntary Work Separation: In this situation employees voluntarily leaves the organization for better prospects or as per agreed employment terms & conditions. It includes:
- Resignation
- Retirement
Involuntary Work Separation: If the separation is initiated by employer then it is involuntary. It includes:
- Layoff or downsizing
- Termination
Employee separation means that the mutual understanding b/w the employer and the employee breaks. It happens because of following reasons such as employee get separated because of any other better oppourunity, breach of contract occurs or because he is unable to mould himself tin the org. culture or the company is forced to separate the employee because of economic crises, low productivity or change in corporate strategy.
There are three kinds of employee separation
Resignation –when employee decides to leave.
Termination – Employer decides to break the contract of employment. This is more often related to being fired or laid off.
Absconding – When employee leave the organization without following the proper process of separation.
It possess legal constraints if not handled properly.Employee separation can be voluntary(resignation or retirement) or involuntary action(downsizing or termination).
Employee Separation
Employee Separation is one of the very important and crucial function / process of HR Department. This process, if not handled in an efficient manner, can lead to various legal complications.
An employee works for an employer and gets paid for his work and nothing else. The relation of an employer and employee has a beginning; they stay together for a while and then they separate. Beginning of the relation is called as recruitment process or talent acquisition that passes through selection phase and followed by induction. Staying together in the relation comprises the various phases such has performance management; career management; professional growth; development and etc. And the final stage of the relation is the separation.
In normal scenarios the separation between employer and employee can be due to any of the following three
1)Resignation – Employee decides to leave the organization.
2) Termination – Employer decides to break the contract of employment.
3) Absconding – When the employee decides to leave the organization without tendering his resignation or following the proper process of separation.
Apart from the above mentioned, the relation between employer and employee can also be terminated during the lay-offs (Financial or economic crisis); during the process of mergers, acquisitions and take-over; or any other legal intervention by the state or central government.
Based on the type of employee that has been hired by the company, if local or an expatriate or a national of other country or if an employee is hired through outsourcing agencies, the process of separation and the documents involved in it also differs.
Types of Separation
Resignation – This is the most common way of separation. Employee leaves his job and employment with his employer to pursue better opportunities; a better position at a better compensation package in a branded company (or better known company) in a same city and country or in a different city or different country. So, an employee resigns for:
1) Better compensation and benefits
2) Higher position / level
3) Challenging role
4) To move from an unknown or lowly branded company to a highly branded and reputed company (Top 10 or 25 companies in the world etc)
5) For foreign or international assignments
Termination – Usually, this process is perceived negatively by employees. In termination, an employer uses his right to terminate the contract of an employment. There can be many reasons for an employer to terminate the contract of employment but some of the common reasons are:
1) Non-Performance
2) Indiscipline
3) Misconduct
4) Insubordination
5) Theft and etc
Absconding – This is one of the most unethical, unexpected and unprofessional way to terminate the contract of an employment. In this, on one fine day an employee decides not to go to work. He does not care to hand-over his stuff. In case an employee decides to abscond (or run-away), it becomes very important to understand his motives and intentions.
HR Scorecard
The Balanced Scorecard is a tool to analyze performance of your business, you need to find aspectsof the work to be measured. It provides a system that leverages the traditional measures available currently for human resources with metrics of performance from four additional perspectives; Financial (top-most level), Customers (level 3), internal business processes (level 2) & learning and growth (Level 1).The HR Scorecard is derived out of the Balanced Scorecard focusing on all the 4 levels, but only on the value being contributed by the HR Department of the organization. The HR SCORECARD is a measurement as well as an evaluation system for redefining the role of HR as a strategic partner.
The 5 elements of HR score card are: Workforce Success (Has the workforce accomplished the key strategic objectives for the business?), Right HR Costs (Is our total investment in the workforce (in any form: planning, recruitment, training, management, compensation, overall staff functions) appropriate (not just minimized)?), Right Types of HR Alignment (Have we designed and implemented world class HR management policies and practices throughout the business?), Right HR Practices (Have we designed and implemented world class HR management policies and practices throughout the business?) , & Right HR Professionals (Are our HR practices aligned with the business strategy and differentiated across positions, where appropriate? Do they identify a CLEAR, CONSISTANT, COMPELLING connection between the company’s strategy and the work of each employee?)
Developing your own HR Scorecard:
Define/ describe your Business/HR Strategies
Develop an aligned HR Strategy Map (4 level of Balanced Scorecard: learning, HR Internal Processes, Internal Customers, Financial)
Identify the High Leverage HR Deliverables (e.g. HR deliverable= ……..increased….by 20 %, which in turn reduced….by 10 %,resulting in a 3% increase in shareholder value for the firm in the financial year ended……)”
Identify key components of the HR Architecture/Model that supports the HR Deliverables
Develop the HR Scorecard/Dashboard
The focus of developing the HR score card must be on the Business Strategy linked to HR Strategy. And then each 4 levels of learning, processes, customers and financials must be defined with specific actions.
EMPLOYEE ENGAGEMENT
Employee engagement is seen as a combination of commitment to the organization and its values and a willingness to help out colleagues (organizational citizenship). It goes beyond job satisfaction and is not simply motivation. It is not about driving employees to work harder but about providing the conditions under which they will work more effectively. This is more likely to result from a healthy work life balance than from working long hours.
The main drivers of employee engagement are:
• having opportunities to feed your views upwards
• feeling well-informed about what is happening in the organization
• Believing that your manager is committed to your organization.
• involvement in decision-making
• freedom to voice ideas, to which managers listen
• feeling enabled to perform well
• having opportunities to develop the job
• Feeling the organization is concerned for employees’ health and well-being.
How to Create Employee Engagement In work place?
The first step is to create employee engagement is to measure employee attitudes through employee attitude surveys that show what employees feel about their work including, pay and benefits, management. Fundamental to managing engagement is that action is taken on the findings of attitude surveys. The drive for an engaged workforce needs to build on good people management and development policies and the active support of line managers. People management strategies and policies with those of the wider business. Employees need to understand how their work contributes to organizational outcomes.
Engagement can be said to have three dimensions:
• intellectual engagement – thinking hard about the job and how to do it better
• affective engagement – feeling positively about doing a good job
• social engagement – actively taking opportunities to discuss work-related improvements with others at work.
Implications for Managers: Allow people the opportunity to feed their views upwards. Keep employees informed about what is going on in the organization and make employees see that managers are committed to the organization so that they can feel engaged.
Employee Separation is the process of ensuring that an employee who quits the company is exited in a structured and orderly manner. The process of employee separation is taken quite seriously by many firms and there is a dedicated department to handle employee exits from the company. In this article we discuss the process of employee separation and the differences between voluntary and involuntary exits.
Voluntary and Involuntary Separation:
Employee separation can be voluntary as well as involuntary. The former is when the employee quits the company on his or her own accord. This is the most common form of employee separation though in these recessionary times, involuntary separation or the act of asking the employee to leave by management is quite common. This form of employee separation where an employee is asked to quit is called involuntary separation. The difference in these two forms of separation is that for voluntary exits, the employee stands to get most of the benefits and perks due to him or her whereas when an employee is asked to
leave, he or she might get a separation package or in instances where disciplinary or performance related exits take place, the employee might not get anything at all.
Components of the Employee Separation Process
The employee separation process starts from the time the employee gives notice to his or her employer about the intention to quit. This is usually called “putting in one’s papers” because in earlier times, an employee was required to submit a formal resignation letter, though in recent times, this is being done by email. Once the employee gives notice, all the financial transactions and records of the employee are “frozen” by the HR department and the employee’s manager is tasked with the process of ensuring proper handover and closure of work tasks allotted to the employee. Usually, the notice period ranges from a month to two to three months depending on the level at which the employee is working. Further, there has to be a well defined handover plan drawn up by the employee’s manager that covers all aspects of closing out on the work that the employee is performing.
Some of the reasons why employee separation takes place are as following:
a) Merging of two or more firms
b) When Company goes at loss
c) To reduce employee costs
d) Low productivity
e) Change in management
f) Economic crisis
g) Strategy changes
h) Outsourcing
Participants in the Employee Separation Process:
Typically, the employee separation process proceeds along two parallel tracks. One involves the employee and the manager and is concerned with the handover of work and other tasks. The other track is by the separations team and deals with the employee benefits accruing as a result of separation as well as other benefits like PF (Provident Fund), Gratuity (If applicable) etc. The HR manager is needed at all steps of this process and in the final exit interview that is conducted to assess the reasons for the employee leaving the company and taking the employee’s views on work and the company in general as well as any “de-motivating” factors that might have caused the employee to resign.
Employee separation:
“Employee separation” is when an employee leaves the organization. The separationoccurs when the employment relationship is ended. Staffing is an ongoing process itnever stops even employees are hired.The employer can initiate separation decisions as discharges and layoffs, but theemployees as quits or retirements can also initiate separation. Determining the quality of the retained work force, it needs to be avoided to view employee separations as a problem.
Basic reasons of employee separations:
There is a reason obviously that’s why employee separate from an organization. Some of the reasons are defined as follows –
a. Efficiency Matter:
When there is a continuous pressure to be competitive and efficient, someemployees separate from the organization. Sometimes employees fails to becompetitive as they can not update themselves in their profession while thecompetitors are updating themselves and sometimes technological changes makethe existing employees uncompetitive and inefficient.
Employee separation:
“Employee separation” is when an employee leaves the organization. The separation occurs when the employment relationship is ended. Staffing is an ongoing process it never stops even employees are hired. The employer can initiate separation decisions as discharges and layoffs, but the employees as quits or retirements can also initiate separation. Determining the quality of the retained work force, it needs to be avoided to view employee separations as a problem.
Basic reasons of employee separations:
There is a reason obviously that’s why employee separate from an organization. Some of the reasons are defined as follows –
a. Efficiency Matter:
When there is a continuous pressure to be competitive and efficient, some employees separate from the organization. Sometimes employees fails to be competitive as they cannot update themselves in their profession while the competitors are updating themselves and sometimes technological changes make the existing employees uncompetitive and inefficient.
b. Organizational Conditions:
When organization refuse in employee’s commitment. Companies fails to keep the commitments with the employees due to many reasons, sometimes it is managements regular practice so, or sometimes due to some critical situation in business, or sometimes to take care of more efficient employees. The organizational characteristics are a kind of indicator that affects work force separation. Sometimes company layoff makes employee separation in big manufacturing firms.
Different types of separation:
Separation can be defined in various types depends on reason. Here we have definedthree types of separation as follows –
A. Reductions-in-force
When an organization reduces employees by force. Why this type of separation happens? Mostly when a firm merges with another firm. After merging with another firm it may require restructuring. Also to make an organization more cost competitive an organization reduces its work force.
A separation can be done due to inefficiency in daily works or activities, sometimes employee’s lack of adaptability in the marketplace.
B.Turnover
A separation process, that may due to inefficiency in daily works or activities or lack of adaptability in the marketplace. Turnover can be conducted in three different ways like –
Involuntary turnover
When employees are asked to leave the company for poor performance or due to circumstances that cause a reduction-in-force.
Voluntary turnover
When an employee leave the company on his/her own initiative, may be due to getting better opportunity or some other circumstances.
Beneficial turnover
When higher performing employees are promoted or hired as replacements in the place of a low performing employee.
A.Retirements
Retirement is a process similar to resignation but mutually appreciated by both employee and the company, it is possible when the employee worked in a company for a certain period (Age Discrimination in Employment Act) or employee cannot work after certain age. On retirement company provides some benefits to the employee. Retirement can give some benefits like it creates advancement opportunities for new employees and reduces salary costs. On the other hand it can cause a loss of major accumulated information of the company (may be marketplace information). In this case company can offer the employee to work as consultant or a part-timer to fill in the gaps of retired employee
HR Score Card
A scorecard is a methodology to look at how an organization is performing by measuring the performance. How an organization performs is based on the mission and vision created into a road map. For example, a scorecard determines if you are meeting your financial goals and customer satisfaction. Human resource (HR) departments are not directly tied to profits and customer satisfaction, yet the department can be measured for performance goals that meet the organization’s standards by using a scorecard.
Typical Metrics
• A scorecard typically measures a business’s performance in areas such as customer satisfaction and customer loyalty as well as financial issues such as market share and profits. This data is gathered by various means such as customer surveys to determine if customers feel loyal to your brand. For human resources, the job function is internal to the organization and what is measured is focused on metrics such as how well processes are managed. Productivity can be measured, process improvement can be measured and turnover rate can be documented. The measurements are given a score depending on the method of scoring created. With this score, your organization has a visual way of improving weak areas and a measure to show where goals are on track.
HR Role
• Human resources originally focused more on administrative duties. As a professional, the role was to perform the hiring process, benefits and sometimes payroll. Scorecard measurements might have included the number of employees hired, reduction in hiring processes and the cost of operating the department. More recently the HR role has shifted. HR is changing in many organizations to a more core role to align with the strategy of a company. The scorecard can be performed on the HR department as a whole and each person in the department. For example, if the company wants to innovate products, the HR department can align its focus to gain talent that is inventive and embraces innovation. Adding these types of measurements to a scorecard can be challenging without deliberate intention to find ways of measuring HR’s impact on the overall organization. Each organization will need to decide how to evaluate and score metrics that seem more intangible. For example, a company that wants more innovation over the next two years gives the task to HR to hire creative people. Perhaps over the two-year period five new patents were developed and two new products were developed because of the employees hired. This is a metric that reflects back on the HR talent search as it meets the company’s needs.
Creating a Scorecard
• According to WorkInfo, an HR resource, organizations must look at two primary issues for creating a scorecard for HR. One issue is external influences to the HR department. This is how the overall organization works. The other issue is internal issues with how the company sees HR’s role. A good way to strategically align more with the company is by showing with metrics how HR is improving the overall business. For example, HR might develop continuing education elements for employees. The scorecard would show the increase or decrease of employee satisfaction after attending an educational course. If the scores show that employees are satisfied by increasing skills, this shows the HR program is successful. It also shows that the HR has value to the strategy of the company.
Example Scorecard
• An example of basic data to collect on an HR scorecard includes several areas. Under finance, you might decide to measure employee turnover costs and use a measurement of the number of employees who quit within one year of hire. Or, you might want to reduce the number of sick days taken. Other types of measures you might track are to be an industry leader as a “great place to work.” You can score your HR technology and improved tools. Or, you can create a communication strategy to connect more closely with employees.
Employee engagement, also called worker engagement, is a business management concept. An “engaged employee” is one who is fully involved in, and enthusiastic about their work, and thus will act in a way that furthers their organization’s interests. According to Scarlett Surveys, “Employee Engagement is a measurable degree of an employee’s positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn and perform at work”. Thus engagement is distinctively different from employee satisfaction, motivation and organisational culture.
There are eight key drivers for employee engagement:
Trust and integrity – how well managers communicate and ‘walk the talk’.
Nature of the job –Is it mentally stimulating day-to-day?
Line of sight between employee performance and company performance – Does the employee understand how their work contributes to the company’s performance?
Career Growth opportunities –Are there future opportunities for growth?
Pride about the company – How much self-esteem does the employee feel by being associated with their company?
Coworkers/team members – significantly influence one’s level of engagement
Employee development – Is the company making an effort to develop the employee’s skills?
Relationship with one’s manager – Does the employee value his or her relationship with his or her manager?
Other key findings include the fact that larger companies are more challenged to engage employees than are smaller companies.
Reward system or management usually mean the financial reward on organization gives its employees in return for their labour. While the term reward system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee. Many papers examine the role of organizational culture i.e., the demand for monitoring compensation. Such investigations conclude that organizational culture places a significant role in determining the level of economic demands. Recent researches on industrial unrest rest indicate that reward criteria of the organisations both financial and non-financial rewards have tremendous influence upon the employees and employers performance.
Why reward system is required?
These components will be designed, developed and maintained on the basis of reward strategies and policies which will be created within the context of the organizations between strategies, culture and environment: they will be expected to fulfill the following broad aims;
1. Improve Organizational Effectiveness: Support the attainment of the organization’s mission, strategies, and help to achieve sustainable, competitive advantage.
2. Support and change culture: Under pin and as necessary help to change the ‘organizational culture’ as expressed through its values for performance innovation, risks taking, quality, flexibility and team working.
3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process.
4. Supportive Managers: Support individual managers in the achievement of their goals.
5. Motivate Employees : Motivate employees to achieve high levels of quality performance.
6. Compete in the Labour Market: Attract and retain high quality people.
7. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf.
8. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization.
9. Improved Skills : Upgrade competence and encourage personal development.
10. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service.
11. Develop team working : Improve co-operation and effective team working at all level.
12. Value for money: Pride value for the money for the organization.
13. Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department.
14. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.
Intrinsic rewards:
Intrinsic rewards are less tangible, originate from persons or job itself and reflect Herzberg motivators. Example of such factors includes;
* Variety in Job Content.
* Sense of being a part of value adding process.
* Believe that they are valuable members of a team.
* Increased responsibility and autonomy.
* Sense of accomplishment.
* Participation in setting targets and opportunities to achieve them.
* Feed back information.
* Recognition.
* Opportunities to learn and grow.
Extrinsic rewards:
Results from the actions of others, such as supervisions are more easily controlled by managers. Examples include pay, fringe benefits, praise and promotion.
Meaning of reward to people
Pay is frequently used as a motivator and reinforce on it can easily be differentiated and computed, linked, clearly and visibly to direct performance and is generally valued reward. While outlined the major components in the meaning of reward to people;
* Short-term material enjoyment.
* Long term security,
* Social status.
* Recognition of personal achievement.
Significant Reasons to develop better reward management system
* To reduce the dissatisfaction of the employees on promotion criterion
* To reduce the dissatisfaction of the employees on appraisal system.
* To reduce the dissatisfaction of the employees on salary, bonus and other fringe benefits.
* To improve the work performance
* To improve the productivity
* To reduce the level of occupational stress that arises from feeling of inequality on reward
* To reduce the perceptional gap on reward management system and develop a culture of high performance.
Organisational culture and reward management system
Higher the job satisfaction members have at work higher the member’s better adjustment with the work and work organisation. Here the culture of the organisation is an important factor, which conveys the policies, and practices widely held by the organisation. An organisational culture, which give importance to employees satisfaction at various level viz., psycho-social and economic needs, can develop better productivity and performance at work. It reduces the perceptional gap on the reward management and performance management system and ensures better involvement and commitment at work. A strong organisation culture, in which the employers take effort to reduce the perceptional gap in the reward management system and induce trust and confidence among the employees at work.
The money is the most motivating factor among all employees at all hierarchy levels therefore reward management plays a very important role also in retaining employees and engaging themselves on the job.
Madam thank u for ur valuable thoughts but u have posted in wrong blog ! because topic is employees separation not reward !
Employee Separation is an HR strategy that is usually done at the time of retrenchment or status quo. The separation of the employees at the company should always be done in alignment with the strategy. Employee Separation is the process of ensuring that an employee who quits the company is exited in a structured and orderly manner. The process of employee separation is taken quite seriously by many firms and there is a dedicated department to handle employee exits from the company.
Voluntary and Involuntary Separation
Employee separation can be voluntary as well as involuntary. The former is when the employee quits the company on his or her own accord. This is the most common form of employee separation though in these recessionary times, involuntary separation or the act of asking the employee to leave by management is quite common. This form of employee separation where an employee is asked to quit is called involuntary separation. The difference in these two forms of separation is that for voluntary exits, the employee stands to get most of the benefits and perks due to him or her whereas when an employee is asked to
leave, he or she might get a separation package or in instances where disciplinary or performance related exits take place, the employee might not get anything at all.
Components of the Employee Separation Process
The employee separation process starts from the time the employee gives notice to his or her employer about the intention to quit. This is usually called “putting in one’s papers” because in earlier times, an employee was required to submit a formal resignation letter, though in recent times, this is being done by email. Once the employee gives notice, all the financial transactions and records of the employee are “frozen” by the HR department and the employee’s manager is tasked with the process of ensuring proper handover and closure of work tasks allotted to the employee. Usually, the notice period ranges from a month to two to three months depending on the level at which the employee is working. Further, there has to be a well defined handover plan drawn up by the employee’s manager that covers all aspects of closing out on the work that the employee is performing.
Participants in the Employee Separation Process
Typically, the employee separation process proceeds along two parallel tracks. One involves the employee and the manager and is concerned with the handover of work and other tasks. The other track is by the separations team and deals with the employee benefits accruing as a result of separation as well as other benefits like PF (Provident Fund), Gratuity (If applicable) etc. The HR manager is needed at all steps of this process and in the final exit interview that is conducted to assess the reasons for the employee leaving the company and taking the employee’s views on work and the company in general as well as any “de-motivating” factors that might have caused the employee to resign.
1) Resignation – The employee decides to leave the organization.
2) Termination – The employer decides to break the contract of employment. This is more often related to being fired or laid off.
3) Absconding – The employee decides to leave the organization without tendering his resignation or following the proper process of separation.
One of the strategy is to close the related department.
there are 3 ways to do that:
1. Voluntary Retirement
2. Place the employee in some other company in the same industry
3. Job Rotation – transfer the employee to another deptt in the same Company.
Strategic Emphasis on Employee Separation
Organizations pursuing a Committed Expert HR strategy focus on terminating the employment of low performers soon after they are hired.
They identifying individuals who do not fit the organizational culture, or who appear unable to develop needed skill and motivation, reduces the cost of bad hiring decisions.
Organizations with a Free Agent HR strategy benefit from frequently replacing employees with others who bring new skills and a fresh perspective.
Employee separation is a common occurrence in such organizations, and ongoing efforts are needed to ensure that disruptions from frequent turnover are minimized as much as possible.
The primary goal is to hire young employees who stay with the organization for long careers.
Having high performers is not as critical in these cost-focused organizations, which means that termination of employment is only necessary when a worker clearly fails to meet even minimum expectations.
Employee Separation , the entire separation process happens smoothly without the separating employee feeling harassed. Smooth transitions and return of company property is ensured. Valuable insights about the organisation from departing employee are received through exit interviews that help the organisation reduce future attrition.Employee exists are natural part of the employee life cycle. Whether caused by voluntary resignation, retirement or company induced termination, employee separations need to be efficiently managed by HR.
Employee separation needs to be handled with sensitivity, discretion and speed so that exits can happen without burning bridges with the employee. After all your alumni are the most effective brand ambassadors for the company’s employer brand equity.
Exiting employees, present an opportunity to glean a wealth of valuable feedback and insights on the organisation strengths and weaknesses as an employer and employee engagement levels.
Not all separations are the same. Some are more “regrettable” than the others. Knowing this is vital to understand when is it worthwhile to go an extra mile in trying to retain a separating employee.
Benefits to the Organization
• Manage succession planning.
• Create an alumni community.
Benefits to HR
• Set policies for employee separation and notice periods.
• Set policies for termination due to unauthorized absence.
• Create a smooth process for correction of employee data, especially for payroll.
Benefits to Employees and Managers
• Manage leave against notice period.
• Get timely clearances of dues.
• Get access to the alumni community for business and social networking.
Employee Seperation usually takes place in organizations when company is going in losses, downsizing or any other structural chnage is taking place, due to bad performance of employee or any ethical misconduct.
There are four kinds of seperation practices:
1) Resignation: This is a form of voluntary practice where an employee provides an employer with a resignation and goes through a formal procedure of leaving the organization. Early retirements are part of this. Usually employees leave the organization through this practice if given a better opportunity elsewhere in terms of compensation, benefit, advancement, etc.
2)Termination: what happens here is that employee has conducted some unethical act or made certain move which he was prohibited to do, hence he gets “fired” from the organization.
3) Tranfers: This is when an employee is sent off to some other department or subsidiary company and the employee is seperated from the previous management.
4) Absconding: The employee leave the organization without following the proper procedure of seperation. Notices are taken out against that employee in newspapers and that employee is charged with financial penalty.
The major issue an organization faces here is to make sure the employee left behind (not seperated) remain motivated and loyal to the organization. All dues are cleared on a timely base and Policies should be devised in a way that employees stay away from absconding. Employee seperation must be handled cost-effectively and exit interviews should be mandatory for employee so that the organization can benefit from the departing employee.
The organizations wish to remain competitive and hence require being flexible and responsive to their environment the organization must develop ways to deal with increasing skill obsolesces among their employees and the labor market in general. The pressure to remain competitive and efficient, forces the organization to lay off their employees which are less committed to the organization. This makes the process of employee separation a key strategic issue for organizations. An effective HR strategy involves managing the process by which employees leave the organization regardless of whether such departure is by the employer’s or employee’s choice. The three major strategies for managing the process of employee’s separation in the organization are
1) Reduction in force.
2) Turnover; and
3) Retirement.
Organizations devise strategies for managing each form of separation. There are several categories of separation as given by different authors and their definitions are:
• Resignation. A voluntary separation, the process is initiated by the employee himself.
• Release. A separation in which the employee is not qualified or adapted for the type of work assigned and no other assignment is available. Release usually results from no fault of the employee. Employees who are unable to perform satisfactorily during the new employee orientation period will be considered as released.
• Deceased. The death of an employee in active employment.
• Retirement. A voluntary separation by an employee age 55 or older who has ten years service as full-time employee.
• Reduction in Force. Work is no longer available. Recall is not expected (job eliminated, contract expired, department closed).
• Discharge. A separation in which the employee is removed from the payroll for violation of employee standards of conduct or safety regulations, unsatisfactory job performance, or any other reason deemed by the university to warrant separation.
In recent years the process and strategies of employee separation has become of significant importance. With the high levels of attrition in the service sector, it has become imperative for firms to have a structured separation plan for orderly exits of employees. Of course, the concept of “pink slips” or involuntary exits are another matter altogether and involve some bitterness that results because of the employee losing his or her job. The employee separations must be handled in a professional and mature manner and though attrition is a fact that concerns everyone in the industry, once an employee decides to leave, the separation must be as smooth as possible.