SEPARATION PROCESS

Human resource management

What is Separations ? Cost of employee separations. Benefits of employee separations. Types of employee separations. Rehabilitation of surplus employees.

Separation

Separation means cessation of service or agreement with the organization for one or other reason. The employee may be separated from the payroll of the company as a result of Resignation Discharge & Dismissal Suspension & Retrenchment Layoff

Human Resource Replacement Costs

CostsCosts

Recruitment CostRecruitment Cost Training CostTraining Cost Separation CostSeparation CostSelection CostSelection Cost

AdvertisingAdvertising

Campus VisitCampus Visit

Recruiter TimeRecruiter Time

Search Firm FeesSearch Firm Fees

InterviewingInterviewing

TestingTesting

Reference ChecksReference Checks

RelocationRelocation

OrientationOrientation

Direct Training Cost

Direct Training Cost

Trainers TimeTrainers Time

Less Productivity During Training

Less Productivity During Training

Separation PaySeparation Pay

BenefitsBenefits

Unemployment Insurance Cost

Unemployment Insurance Cost

Exit InterviewExit Interview

OutplacementOutplacement

Vacant PositionVacant Position

Benefits of employee separations

Reduced labour costs Replacements of poor performances Increased innovation The opportunity for greater diversity

Types of employee separations

Types of employee separations

Voluntary Involuntary

Quits

Retirements

Layoffs

Discharges

Retrenchment

Involuntary separationsIt occurs when an employer decides to terminate its

relationship with an employee due to Economic necessity or A poor fit between the employee and the organization.

Voluntary separationsA separation that occurs when an employee decides, for

personal or professional reasons to end the relationship with the employer.

Types Of Voluntary Separations

There are two types of voluntary separations: Quits Retirement

Types Of Involuntary Separation There are three types of involuntary separations

Discharge Layoff Retrenchment

Discharge takes place when mgmt decides that there is a poor fit between an employee and the organization. It could be a result of poor performance Or because of some unacceptable behavior

Layoff means the “failure”, “refusal" or “inability” on the part of any employer to give employment to any number of workmen on account of shortage of raw material, accumulation of stock, breakdown of machinery or for any other reason.

Retrenchment means “discharge of surplus labour or staff” by the employer on account of long period of layoff, or rationalization or improved machinery or automation of machines or similar other reasons.

Impact Of Layoff

Effects the morale of remaining employees Regions economic vitality Entire community suffers Investors are affected company’s image Difficult to attract & recruit highly skilled

employees

Implementing A Layoff

Notifying employees ( before 7 days )

Developing layoff criteria Communicating to laid off employees Coordinating media relations Maintaining security Reassuring survivors of layoff

Alternatives to layoffs

Employment policies Reduction through attrition Hiring freeze

Changes in job design Transfer Relocation Job transfer

Training

Outplacement

It is an HR program created to help separated employees deal with the emotional stress of job loss.

Goals of outplacement

Reducing the morale problem of employees who are about to be laid off.

Minimizing the amount of litigation initiated by separated employees

Assisting separated employees in finding new jobs