10

Gary Dessler

Human Resource Management, 16th Edition

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Managing

Careers and Retention

Learning Objectives

Prepared by Prof. Dr. Ireen Akhter

After studying this chapter, you should be able to:

10-1 Discuss what employers and supervisors can do to support employees’ career development needs.

10-2 Explain why career development can improve employee engagement.

10-3 Describe a comprehensive approach to retaining employees.

10-4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

10-5 Explain each of the main grounds for dismissal.

Introduction

Prepared by Prof. Dr. Ireen Akhter

• Career is the occupational positions a person holds in an organization over the years.
• Career management is the process for assisting employees to better understand, develop, and use their career skills & interests and to use most effectively both within the company and after they leave the company.
• Career development is the lifelong series of activities that contribute to a person’s career exploration, establishment, success, and fulfillment.
• Career planning is the deliberate process through which someone identifies career-related goals; and establishes action plans to attain specific goals by acquiring required KSAs.

Employer’s Role in Career Management

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• Employers responsibilities depending partly on how long the employee(s) has/have been with the firm.
• Realistic job interviews –before hiring
• Preventing reality shock (employee’s high expectations and enthusiasm confront the reality of a boring, unchallenging job)- by mentoring
• Job rotation- paired with an executive advisor, who provides career coaching and mentoring.
• Feedback- the manager appraises the employees by using the results to help the person to match his or her strengths and weaknesses with a feasible career path.

Employee’s Role in Career Management

Prepared by Prof. Dr. Ireen Akhter

• Employee is responsible for his or her own career.
• Participate in career planning work shop.
• Take support from career coaches.
• Career-counseling expert John Holland says that personality (Big five personality types including values, motives, and needs) is an important career choice determinant ( Self-Directed Search (SDS) test (available online at www.self-directed-search.com).

Managing Employee Turnover and Retention

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• Turnover is the rate at which employees leave the firm.
• Reducing turnover requires identifying and managing the reasons for both voluntary and involuntary turnover.
• Calculation recommended by SHRM: First calculate turnover for each month by dividing the number of [voluntary] separations during the month by the average number of employees during that month and multiplying by 100. Then calculate the annual turnover rate by adding the 12 months of turnover percentages together.”

Managing Employee Turnover and Retention

Prepared by Prof. Dr. Ireen Akhter

• The five top reasons (top-performing employees) for leaving were pay, promotional opportunities, work–life balance, career development, and health-care benefits (ranked from high to low).
• Another survey found the top five reasons: career development (22%), work–life balance (12%), management behavior (11%), compensation and benefits (9%), and well-being (9%).
• Most who left due to “career development,” said they didn’t like the work they were doing, and lack of growth and development.
• Other reasons include: job motivation, social support, and burnout correlated with turnover intentions, unfairness, not having their voices heard, and lack of recognition.

A Comprehensive Approach for Retaining Employees

Prepared by Prof. Dr. Ireen Akhter

• Identifying problems by exit interview.
• Administering attitude surveys.
• Satisfaction survey by asking simple question. Such as, “All things considered, how satisfied are you with your job?”
• Open-door policies and anonymous “hotlines”
• Stay interview by supervisor. Such as, “How can I best support you?”
• Analyzing the situation leads to simple solutions. Walmart discovered it could significantly reduce voluntary turnover by providing aggressively realistic previews about the job’s demands and work hours.

A Comprehensive Approach for Retaining Employees

Prepared by Prof. Dr. Ireen Akhter

• Raise pay –
• Hire smart –
• Discuss careers -
• Provide direction -
• Offer flexibility -
• Use high-performance HR practices -
• Counteroffer? -“Band-aid for a head wound.”
• Trends.

Managing Dismissal

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• Dismissal is an involuntary termination of an employee’s employment with the firm.
• Four bases for dismissal:
• Unsatisfactory performance - specific reasons include lack of productivity or poor-quality work, excessive absenteeism, tardiness, or an adverse attitude.
• Misconduct- may include stealing, rowdy behavior, sexual harassment, and physical violence or threats at work.
• Lack of qualifications - it is reasonable to try to salvage employee through further training or by assigning to another job, if possible.
• Changed requirements of the job -

Insubordination

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• Insubordination - willful disregard or disobedience of the boss’s authority or legitimate orders or criticizing the boss in public.
• Examples of insubordination include the following:
• Direct disregard of the boss’s authority
• Direct disobedience of, or refusal to obey, the boss’s orders, particularly in front of others
• Deliberate defiance of clearly stated company policies, rules, regulations, and procedures
• Public criticism of the boss
• Blatant disregard of reasonable instructions
• Contemptuous display of disrespect
• Disregard for the chain of command
• Participation in (or leadership of) an effort to undermine and remove the boss from power

Supervisor’s Liability

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• Insubordination - willful disregard or disobedience of the boss’s authority or legitimate orders or criticizing the boss in public.
• Courts may hold managers personally liable, as according to the law, all managers are employer.
• There are several ways to reduce this type of personal liability-
• Follow company policies and procedures.
• Carefully consider and fully document the basis for any termination decision.
• Administer the dismissal in a manner that does not add to the employee’s emotional hardship
• Do not act in anger.
• Finally, use the HR department for advice regarding how to handle difficult dismissal situations.

The Termination Interview and Exit Process

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• Termination interview -The interview in which an employee is informed of the fact that he or she has been dismissed.

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• Guidelines for the termination interview:
1. Plan the interview-
• the appointment time.
• have employee agreements, the human resource file, and a release announcement prepared in advance.
• phone numbers ready for medical or security emergencies.
2. Get to the point.
3. Describe the situation- Briefly, in three or four sentences.
4. Listen - until the person appears to be talking freely and reasonably calmly.
5. Review the severance package-
6. Identify the next step-

The Termination Interview and Exit Process

Prepared by Prof. Dr. Ireen Akhter

• Termination interview -The interview in which an employee is informed of the fact that he or she has been dismissed.

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• Guidelines for the termination interview:
1. Plan the interview-
• the appointment time.
• have employee agreements, the human resource file, and a release announcement prepared in advance.
• phone numbers ready for medical or security emergencies.
2. Get to the point.
3. Describe the situation- Briefly, in three or four sentences.
4. Listen - until the person appears to be talking freely and reasonably calmly.
5. Review the severance package-
6. Identify the next step-

Assignment

Prepared by Prof. Dr. Ireen Akhter

• Why people take turnover decision? (Develop why people leave first and then develop questionnaire, survey 5 co-workers each and then draw summary.

Reasons Employees Leave

Prepared by Prof. Dr. Ireen Akhter

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Here are some of the primary reasons employees leave their jobs ( U.S. Bureau of Labor Statistics):

• They want higher compensation.
• The work isn’t challenging.
• There is no clear path to grow within the company.
• They lack access to health insuranceThey lack access to health insurance and employee retirement plans.
• They don’t feel valued.
• Flextime isn’t an option.
• They have problems with a manager.
• They’re burned out from being overworked or stressed.
• They’re not recognized for a job well done.
• There is no clear direction from management.
• They don’t fit with the company culture.

Reasons Employees Remain

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Employees remain with a company (https://www.businessnewsdaily.com/15878-employee-retention-rate.html):

• Competitive salary
• High level of engagement
• Flexible work schedule
• Clear path to advance within the organization
• Access to learning and development
• Comprehensive employee benefits plan
• Supportive and empathetic management
• Respect and gratitude
• Great company culture and team
• Support for the company’s mission