Human Resource Management PDF

HUMAN RESOURCE MANAGEMENT THE COST OF TURNOVER According to the book Keeping the People Who Keep You in Business by Leigh Branham (Branham, 2000), the cost of losing an employee can range from 25 percent to 200 percent of that employee’s salary. TURNOVER Losing an employee c...

HUMAN RESOURCE MANAGEMENT THE COST OF TURNOVER According to the book Keeping the People Who Keep You in Business by Leigh Branham (Branham, 2000), the cost of losing an employee can range from 25 percent to 200 percent of that employee’s salary. TURNOVER Losing an employee can be very expensive to an organization, which is why it is important to develop retention plans to manage turnover. REMPLOYEE called turnover TWO TYPES OF TURNOVER VOLUNTARY TURNOVER is the type of turnover that is initiated by the employee for many different reasons. can be somewhat predicted and addressed in HR, the focus of this chapter. INVOLUNTARY TURNOVER is where the employee has no choice in their termination—for example, employer-initiated due to nonperformance.( organization) DIRECT TURNOVER COST include the cost of leaving, replacement costs, and transition costs INDIRECT TURNOVER COST include the loss of production and reduced performance EXAMPLE OF TURNOVER COSTS (MAERTZ & CAMPION, 1998) 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 the employee’s lack of motivation prior to leaving Sometimes, the costs of trade secrets and proprietary information shared by the employee who leaves Public relations costs RETENTION PLANS outline the strategies the organization will use to reduce turnover and address employee motivation REASONS FOR VOLUNTARY TURNOVER 1. A poor match between the job and the skills of the employee. This issue is directly related to the recruitment process. When a poor match occurs, it can cause frustration for the employee and for the manager. 2. Lack of growth Some employees feel “stuck” in their job and don’t see a way to have upward mobility in the organization. 3. Internal pay equity Some employees, while they may not feel dissatisfied with their own pay initially, may feel dissatisfaction when comparing their pay with others. 4. Management Many employees cite management as their reason for leaving. This can be attributed to overmanaging (micromanaging) people, managers not being fair or playing favorites, 5. Workload Some employees feel their workloads are too heavy, resulting in employees being spread thin and lacking satisfaction from their jobs _______________________________________________ EMPLOYEE RETENTION organization’s ability to keep (retain) its current employees closely linked to employee experience since a positive experience is associated with higher Intent to Stay actions organizations take to keep employees happy, engaged, and productive at work. EMPLOYEES most valuable asset of any successful business WHY IS EMPLOYEE RETENTION IMPORTANT? The importance of employee retention is felt across the business: from profitability and productivity to culture and camaraderie. Employee retention also affects the quality of your business. Experienced employees who understand your industry and your brand inside and out are one of the best secret weapons you can have in your arsenal. Included. Supported. Retained. 5 EMPLOYEE RETENTION STRATEGIES EVERY BUSINESS NEEDS 1. CRAFT INTENTIONAL JOB DESCRIPTION The job description is everything. If you’re not clear about your expectations and values from the outset, your new employee may feel blindsided and unprepared. 2. IMPROVE YOUR TOTAL COMPENSATION STRATEGY Compensation is one of the most fundamental factors that can affect employee performance, job satisfaction and, ultimately, retention competitive pay, compelling rewards, and equal pay in your workplace SOME MEANINGFUL RETENTION STRATEGIES FOR COMPENSATION INCLUDE: Close pay gaps - use the data available to you from HR to identify areas of pay disparity and those gaps. knock on effect on an employee’s bonuses, benefits and perks Standardize your compensation strategy - data is your friend. Comparing your compensation offerings with other businesses means you can remain informed and competitive in the market place Be transparent - Honesty and transparency go a long way. Sometimes just sharing the rationale behind your pay decisions is one of the best employee retention ideas you can implement 3. NURTURE A HEALTHY COMPANY CULTURE Company culture is becoming increasingly valuable to employees. Curating the right company culture can play a huge role when trying to think of creative ways to retain employees. 3 PILLARS Communication - How do your employees communicate with you and with each other? Accountability - What are the consequences of outstanding or mediocre performance? Community - How do your employees relate to each other and your business? 4. PRIORITIZE PRAISE AND FEEDBACK Important to recognize your weak and strong points for improvement. 5. OFFER A CLEAR CAREER PATH  We need purpose and movement. In our careers, we want to feel like we’re contributing to something worthwhile and moving forwards. SOME EFFECTIVE EMPLOYEE RETENTION IDEAS INCLUDE: Additional training to help employees reach the next level Regular target setting Creating performance milestones Providing internal workshops and seminars of interest Internal hires and promotions Open dialogue between management and employees around progression plans. __________________________________________________________ EFFECTIVE COMMUNICATION in the workplace can have a significant impact on nearly every aspect of a company's productivity and success. COMMUNICATION how we exchange information with others. MAIN FORMS OF COMMUNICATION VERBAL COMMUNICATION includes speaking, conversations, presentations, video chatting and phone calls. WRITTEN COMMUNICATION includes the written word such as in emails, memos, reports, website content and documents. NONVERBAL COMMUNICATION includes body language, facial expressions and general appearance. TYPES OF COMMUNICATION BARRIERS PHYSICAL BARRIERS refer to the physical layout of the workplace (separate work areas, closed office doors) as well as the perceived territories within an office space. EMOTIONAL BARRIERS result from emotions such as mistrust and fear.  LANGUAGE BARRIERS include using jargon, unfamiliar expressions and abbreviations in written and verbal communication. 12 COMMUNICATION STRATEGIES TO USE AT WORK 1. Be aware of your nonverbal cues - Take note of your nonverbal cues when communicating and adjust if cues are not supporting what you are trying to communicate. 2. Maintain eye contact - shows that you are paying attention to the other person and are an active part of the conversation 3. Request and provide feedback - Offering and asking for feedback shows that you care about what the other person is saying as well as their opinions 4. Use encouraging small verbal comments - When taking part in a conversation, use small verbal comments such as "uh-huh." This can encourage the speaker to continue and lets them know that you are listening. 5. Don't interrupt - to show respect and that you are listening to what they are saying 6. Focus on what the other person is saying - Paying attention is the key to effective communication. 7. Limit distractions - Communication is much more effective when there are little to no distractions. put away your mobile device, shut off your computer and limit any other distractions 8. Participate in a public speaking class - speech class can help build confidence when speaking to others and equip you with effective communication strategies 9. Acknowledge what others are expressing - acknowledge what they are saying by nodding, using facial expressions and participating in the conversation when appropriate 10. Consider your tone of voice  - tone of voice can have a significant impact on how others interpret what you’re saying. 11. Use appropriate grammar and spelling - Avoid using abbreviations, slang, jargon and other forms of language that may not be understood by others 12. Proofread and edit - Before sending an email, text or other written form of communication __________________________________________________________ MANAGEMENT STYLE behaviors and methods used by those who manage people within an organization Why You Need to Be Aware of the Way You and Your Organization’s Leaders Manage Every leader has a natural management style, and that style may create unnecessary conflict with other styles or with direct reports. Becoming aware of your own style along with the style of others equips you to adapt and ensures that conversations don't get lost in translation and employees want to stay with the company. TYPES OF MANAGEMENT STYLE AUTHORITATIVE managers want to be in complete control over every aspect of the team. They will give instructions like “Do as you're told” or “I know the best method to complete this task.” PROS Clarity - managers provide clarity on how to complete tasks. Vision - managers know what success looks like and can be counted on to provide that direction CONS Poor talent retention - may not be aware of the negative impact they have on their team. doesn’t promote positive relationships, and may lead to turnover.  Heavy Personality - come across as a heavy or overbearing personality.may experience lower morale, decreased engagement and resentment PERSUASIVE this style is defined by centralized decision-making by the manager. persuaded to complete certain tasks through structured messaging PROS Efficient decision-making - makes all the decisions and persuades the team to buy into it (quick & efficient) Clarity - knows their span of control and what is expected of them Ideal for experts - experts in their field can easily use this style to earn respect from employees CONS Responsibility - Managers may be the knowledge expert, but they are held responsible for the outcome whether or not the team supports it or the manager explains it perfectly Weak Foundation - relies on messaging to accomplish goals, without building trust or respect with employees Ready for anything - need for new ideas continues to grow the organization, managers with this style will be included and should be ready at a moment's notice to help the organization grow and evolve COLLABORATIVE creates a space where everyone feels safe to voice their thoughts, and leverages PROS Innovation - encourages all ideas to be shared, even if the manager disagrees with them Trust Building - focuses on transparent communication helps employees feel safe, valued and empowered Win-win solutions - focuses on finding solutions where both parties end up happy CONS Power struggles - lead to some employees believing they have leadership roles within the company Quality of relationship - focus on working as a group and sharing ideas reduces the time for employees to form individual  Time consuming - asking for input may be wasting time on decisions their team doesn’t need to be included DEMOCRATIC Managers who seek input from every direct report regarding decisions while maintaining decision-making power are democratic leaders PROS Trust - builds a strong bond between manager and employee Present in the moment - Trust in a manager leads employees to be more engaged in their work and have lower absenteeism Clear vision - provides a clear vision of what success looks like while allowing employee input on how to achieve it Invites higher commitment - asks each employee to actively contribute to the business with new ideas and the tasks they complete CONS Poorly defined - similar to other styles of leadership, with no unique traits that set it apart Resentful employees - Not all employees will participate in respectful conversation and sharing of ideas Best ideas not acted upon - may act upon the loudest ideas or the ideas from the most charismatic speakers LAISSEZ-FAIRE having complete trust and reliance on their team. They provide guidance when it is needed, but ultimately expect their team to solve problems on their own. This is also known as “delegative leadership.” PROS Accountability - allows teams to be held accountable for their work Higher talent retention - gives employees a sense of freedom to go the extra mile, try new tasks outside their normal duties, and expand their career paths - more likely to stay with your company and recommend it to others Relaxed environment - more likely to enjoy their job under this style of management because their boss isn’t micromanaging CONS Difficult for new hires - hands-off approach may result in an employee questioning if they made the right choice joining your company. Lack of accountability - may blame the manager or another employee if goals are not achieved or if the employee didn’t understand what was being asked Risk of turnover - Employees want to see and be seen by their manager. They want to share ideas and feel comfortable talking to leaders when issues arise. If not, they may leave and seek employment elsewhere TRANSFORMATIVE focuses on managers encouraging and inspiring employees to be creative when bringing new ideas PROS Secret weapon - reward employees who bring ideas that help the company accomplish goals Quickly builds trust - spend time listening and conversing with employees about ideas to improve the company - basic employee need when joining a company One team - opens communication channels for everyone to work toward a common goal CONS Not for everyone - needs a collaborative environment without bureaucracy getting in the way - Large companies may not allow this management style Focus on immediate needs - succeeds with immediate new ideas. Through no fault of their own, employees may only give ideas for immediate needs and not for long-term success Risk of burnout - Everyone has their limits, and the constant need for new ideas to push the company toward a goal can lead to burnout.