Human Resource Management, v4.0 • Laura Portolese © 2023 FlatWorld PUBLISHED BY: FLATWORLD ©2023 BY FLATWORLD. ALL RIGHTS RESERVED. YOUR USE OF THIS WORK IS SUBJECT TO THE LICENSE AGREEMENT AVAILABLE. NO PART OF THIS BOOK MAY BE USED, MODIFIED, OR REPRODUCED IN ANY FORM BY ANY MEANS EXCEPT AS EXPRESSLY PERMITTED UNDER THE LICENSING AGREEMENT. © 2023 FlatWorld CHAPTER 7 Retention, Motivation, and Engagement © 2023 FlatWorld LEARNING OBJECTIVES • Identify the difference between direct and indirect turnover costs. • Describe some of the reasons why employees leave. • Write a retention plan. © 2023 FlatWorld THE COSTS OF TURNOVER • Cost of turnover can range from 20-200% of the employee’s salary • Turnover • The loss of an employee • Voluntary turnover • • Initiated by the employee Can be predicted and addressed in HR • Involuntary turnover • • © 2023 FlatWorld Employee has no choice in termination i.e., employer initiated due to non-performance THE COSTS OF TURNOVER • Calculating turnover Separations during the period/total number of employees x 100 = % of turnover © 2023 FlatWorld THE COSTS OF TURNOVER United States Hires and Separations, 2006–2021 © 2023 FlatWorld Source: Data from Bureau of Labor Statistics https://www.bls.gov/news.release/jolts.a.htm. THE COSTS OF TURNOVER • Examples of turnover costs • 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 employee’s lack of motivation before leaving • The costs of trade secrets and proprietary information shared by the employee who leaves • Public relations costs © 2023 FlatWorld THE COSTS OF TURNOVER Direct Recruitment costs Advertising costs for new position Orientation and training of new employee Severance costs Testing costs Time to interview new replacements Time to recruit and train new hires © 2023 FlatWorld Indirect Lost knowledge Loss of productivity while new employee is brought up to speed Cost associated with lack of motivation prior to leaving Cost associated with loss of trade secrets REASONS FOR VOLUNTARY TURNOVER • A poor match between the job and the skills of the employee • Lack of growth • Internal pay equity • Management • Workload © 2023 FlatWorld REASONS FOR EMPLOYEE TURNOVER © 2023 FlatWorld KEY TAKEAWAYS • Retaining employees is an important component to a healthy organization. Losing an employee is called turnover. Turnover can be very expensive to an organization, which is why it is important to develop retention plans to manage turnover. • Voluntary turnover is turnover that is initiated by the employee, while involuntary turnover is initiated by the organization for various reasons such as nonperformance. • Direct turnover costs and indirect turnover costs can include the costs associated with employee replacement, declining employee morale, or lost customers. • Some of the reasons why employees leave can include a poor match between job and skills, no growth potential, pay inequity among employees, the fairness and communication style of management, and heavy workloads. © 2023 FlatWorld LEARNING OBJECTIVES • Discuss some of the theories on job satisfaction and dissatisfaction. • Explain the components of a retention plan. © 2023 FlatWorld RETENTION PLANS • High-Performance Work Systems (HPWS) • Set of systematic practices that create an environment where the employee has greater involvement and responsibility for the success of the organization • A strategic approach © 2023 FlatWorld RETENTION PLANS © 2023 FlatWorld RETENTION PLANS • Progression of Job Withdrawal © 2023 FlatWorld RETENTION PLANS • Hawthorne Studies • Conducted in 1927–1932 • Designed to see how physical and environmental factors affected motivation • Lighting and break times • Research found that worker improvement occurred no matter which experiments were performed • Workers were happy to receive attention • This was the start of research on motivation at work © 2023 FlatWorld RETENTION PLANS © 2023 FlatWorld RETENTION PLANS • Hertzberg Two-Factor Theory • Studies determined which aspects at work caused satisfaction or dissatisfaction • Resulted in motivation factors and hygiene factors • Motivation factors • Achievement • Recognition • The work itself • Responsibility • Advancement • Growth • Hygiene factors • Company policies • Supervision • Relationship with manager • Work conditions • Salary • Relationship with peers © 2023 FlatWorld RETENTION PLANS • McGregor • X-Y Theory • Theory X manager – a type of manager who has a negative approach to employee motivation • Theory Y manager – a type of manager who has a positive approach to employee motivation • Starting point to understanding how management style impacts motivation • Carrot and Stick approach • “Stick” is used to poke and prod “if you don’t increase sales by 10%, you will be fired” • Carrot approach offers a reward “If you increase sales by 10%, you will receive a bonus” © 2023 FlatWorld RETENTION PLANS • Sources of Employee Satisfaction Data • Pulse survey • Exit interviews • Job descriptive index (JDI) Survey • Stay interview © 2023 FlatWorld KEY TAKEAWAYS • A high-performance work system (HPWS) is a set of systematic HR practices that create an environment where the employee has greater involvement and responsibility for the success of the organization. The overall company strategy should impact the HPWS that HR develops in regard to retention. • Retention plans are developed to address employee turnover, resulting in a more effective organization. • The first step in developing a retention plan is to use exit interviews, stay interviews and/or surveys to find out the satisfaction level of employees. Once you have the data, you can begin to write the plan, making sure it is tied to the organizational objectives. • A standardized and widely used measure of job satisfaction is the JDI survey, or the Job Descriptive Index. While JDI was initially developed in 1969 at Bowling Green State University. JDI looks at five aspects of job satisfaction, including present job, present pay, opportunities for promotion, supervision, and coworkers. © 2023 FlatWorld KEY TAKEAWAYS • A retention plan normally consists of survey and exit interview analysis, any current plans and strengths and weaknesses of those plans, the goal of the retention plan, and finally, the specific strategies to be implemented. • There are many motivation theories that attempt to explain people’s motivation or lack of motivation at work. • The Hawthorne studies were a series of studies beginning in 1927 that initially looked at physical environments but found that people tended to be more motivated when they felt cared about. The implications to retention are clear, in that employees should feel cared about and developed within the organization. • Maslow’s theory on motivation says that if someone already has a need met, giving them something to meet more of that need will no longer motivate. Maslow divided the needs into physiological, safety, social, esteem, and self-actualization needs. Many companies only motivate based on the low-level needs, such as pay. Development of training opportunities, for example, can motivate employees on high-level self-actualization needs. © 2023 FlatWorld KEY TAKEAWAYS • Herzberg developed motivational theories based on actual motivation factors and hygiene factors. Hygiene factors are those things that are expected in the workplace and will demotivate employees when absent but will not actually motivate when present. If managers try to motivate only on the basis of hygiene factors, turnover can be high. Motivation on both of his factors is key to a good retention plan. • McGregor’s theory on motivation looked at managers’ attitudes toward employees. He found that theory X managers had more of a negative view of employees, while theory Y managers had a more positive view. Providing training to the managers in our organization can be a key retention strategy based on McGregor’s theory. • The carrot-and-stick approach means you can get someone to do something by prodding or by offering some incentive to motivate them to do the work. This theory implies these are the only two methods to motivate, which of course, we know isn’t true. The implication of this in our retention plan is such that we must utilize a variety of methods to retain employees. © 2023 FlatWorld LEARNING OBJECTIVE • Explain the strategies and considerations in development of a retention plan. © 2023 FlatWorld IMPLEMENTING RETENTION STRATEGIES • Salaries and Benefits • Institute a standard process • A pay communication strategy • Paid time off © 2023 FlatWorld IMPLEMENTING RETENTION STRATEGIES • Training and Development • Allows employees to experience growth • Performance appraisals • Formalized process to assess how well an employee is performing • Can be used as goal-setting opportunities • Succession planning • Allows employees to see a “path” for job growth © 2023 FlatWorld IMPLEMENTING RETENTION STRATEGIES • Flextime, telecommuting, sabbaticals • Ability to work from home or be flexible can entice employees • Management training • Training managers to be better managers © 2023 FlatWorld IMPLEMENTING RETENTION STRATEGIES • Conflict management and fairness • Outcome fairness • Procedural justice • Six areas used to determine the outcome fairness of a conflict: • Consistency • Bias suppression • Information accuracy • Correctability • Representativeness • Ethicality • Mediation • Arbitration © 2023 FlatWorld IMPLEMENTING RETENTION STRATEGIES • Job design, job enlargement, and empowerment • Designing a more rewarding job, adding duties to help with growth, and allowing employees to make decisions • Pay-for-performance strategies • Employees are rewarded for achieving set objectives • Work-life balance • Ensuring employees have satisfying home and work lives © 2023 FlatWorld IMPLEMENTING RETENTION STRATEGIES • Other Strategies • On-site daycare or daycare assistance • Gym memberships or on-site gyms • Concierge service to assist in party planning or dog grooming, for example • On-site dry-cleaning drop-off and pickup • Car care, such as oil changes, on-site once a week • On-site doggie daycare • On-site yoga or Zumba classes • “Summer Fridays,” when all employees work half days on Fridays during the summer • Various support groups for cancer survivors, weight loss, or caring for aging parents • Allowance for fertility treatment benefits • On-site life coaches • Peer-to-peer employee recognition programs • Management recognition programs © 2023 FlatWorld TECHNOLOGY’S ROLE • Technology can help streamline the talent retention process: • Learning Management System—to make the training process easily administered and available to employees • Career Development Systems and Succession planning systems—this allows employees to see a career pathway in their job, help them self-assess their own skills and abilities. • Performance Management—allows managers and employees to use performance reviews/assessments as a tool to further their personal development. • Goal Management—allows department and individuals to set goals and measure those goals, which results in continued human capital development. © 2023 FlatWorld KEY TAKEAWAYS • Once you determine the employee’s level of satisfaction through exit interviews and surveys and understand motivational theories, you can begin to develop specific retention strategies. • Salary and benefits are a major component of retention strategies. Consistent pay systems and transparent processes as to how raises occur must be included in a retention plan and compensation strategy. • Training and development meets the higher-level needs of the individual. Many companies offer paid tuition programs, reimbursement programs, and in-house training to increase the skills and knowledge of the employee. • Performance appraisals provide an avenue for feedback and goal setting. They also allow for employees to be recognized for their contributions. © 2023 FlatWorld KEY TAKEAWAYS • Succession plans allow employees to see how they can continue with their career with the organization, and they clearly detail what employees need to do to achieve career growth, without leaving your organization. • Flextime and telecommuting options are worth considering as an addition to your retention plan. These types of plans allow employees flexibility when developing their schedules and some control of their work. Some companies also offer paid or unpaid sabbaticals after a certain number of years with the company to pursue personal interests. • Since one of the reasons people are dissatisfied at their job is because of the relationship with their manager, providing in-house training to all management team members to help them become better communicators and better managers can trickle down to the employee level, creating better relationships and resulting in better retention and less turnover. © 2023 FlatWorld KEY TAKEAWAYS • Reviewing company policies to ensure they are fair can contribute to better retention. For example, how projects are assigned or the process for requesting vacation time can contribute to dissatisfaction if the employee feels the processes are not fair. • Review the job design to ensure the employee is experience growth within their job. Changing the job through empowerment or job enlargement to help the growth of the employee can create better retention. • Other, more unique ways or retaining employees might include offering services to make the employee’s life easier, such as dry-cleaning, daycare services, or on-site yoga classes. © 2023 FlatWorld Human Resource Management, v4.0 • Laura Portolese © 2023 FlatWorld PUBLISHED BY: FLATWORLD ©2023 BY FLATWORLD. ALL RIGHTS RESERVED. YOUR USE OF THIS WORK IS SUBJECT TO THE LICENSE AGREEMENT AVAILABLE. NO PART OF THIS BOOK MAY BE USED, MODIFIED, OR REPRODUCED IN ANY FORM BY ANY MEANS EXCEPT AS EXPRESSLY PERMITTED UNDER THE LICENSING AGREEMENT. © 2023 FlatWorld CHAPTER 8 Training and Development © 2023 FlatWorld LEARNING OBJECTIVE • Explain the four steps involved when training an employee. © 2023 FlatWorld STEPS TO TAKE IN TRAINING AN EMPLOYEE • Lack of training results in • • • Lost productivity Lost customers Poor relationships between employees and managers • What happens when companies don’t train? • • • Dissatisfaction Retention problems High turnover • Employee orientation • • • • © 2023 FlatWorld Welcoming a new employee In-house training on job-specific areas Mentor assignment External training EMPLOYEE ORIENTATION • Goals of an orientation • • • • • © 2023 FlatWorld To reduce start-up costs To reduce anxiety To reduce employee turnover To save time for the supervisor and coworkers To set expectations and attitudes STEPS TO TAKE IN TRAINING AN EMPLOYEE • In-house training • • Learning opportunities developed by the organization in which they are used Examples • • • • • • • • • © 2023 FlatWorld Ethics training Sexual harassment training Multicultural training Communication training Management training Customer service training Operation of special equipment Training to do the job itself Basic skills training STEPS TO TAKE IN TRAINING AN EMPLOYEE • Mentoring • • • © 2023 FlatWorld A formal program Part of the company culture Mentor selection STEPS TO TAKE IN TRAINING AN EMPLOYEE • External Training • • Any type of training that is not performed in-house. Examples • • © 2023 FlatWorld Sending an employee to a seminar Helping pay tuition for an employee KEY TAKEAWAYS • Employee training and development is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Training is important to employee retention. • There are four steps in training that should occur. Employee orientation has the purpose of welcoming new employees into the organization. An effective employee orientation can help reduce start-up costs, reduce anxiety for the employee, reduce turnover, save time for the supervisor and colleagues, and set expectations and attitudes. • An in-house training program is any type of program in which the training is delivered by someone who works for the company. This could include management or HR. Examples might include sexual harassment training or ethics training. Inhouse training can also include components specific to a job, such as how to use a specific kind of software. In-house training is normally done as a second and ongoing step in employee development. © 2023 FlatWorld KEY TAKEAWAYS • A mentor form of training pairs a new employee with a seasoned employee. This is usually the third step in employee training. A mentor program for training should include a formalized program and process. • External training is any type of training not performed in-house; part of the last training step, external training can also be ongoing. It can include sending employees to conferences or seminars for leadership development or even paying tuition for a class they want to take. © 2023 FlatWorld LEARNING OBJECTIVE • Explain and give examples of the types of training that can be offered within an organization. © 2023 FlatWorld TYPES OF TRAINING • Technical training • • Training in the technological aspects of the job Examples • • • Using the computer system Processing orders Learning latest version of Microsoft Office • Quality training • • • © 2023 FlatWorld Familiarizing employees with the means of preventing, detecting, and eliminating nonquality items ISO9000 is the set of standards for quality management ISO14000 is the set of standards for environmental management TYPES OF TRAINING • Skills training • • Training in proficiencies needed to actually perform the job Examples • • Answering the phone Assessment of customer needs • Soft skills training • • Personality traits, social graces, communication, and personal habits Examples • • • • • © 2023 FlatWorld How to answer the phone How to be friendly and welcoming to customers Sexual harassment training Ethics training How to motivate others TYPES OF TRAINING • Professional training • • Training required to be up to date in one’s own professional field Examples • • • © 2023 FlatWorld Annual training on new tax codes Learning about new laws Yearly certifications TYPES OF TRAINING • Team training • • Empowering teams to improve decision making, problem solving, and teamdevelopment skills Reasons for team training • • • • • • • • • • © 2023 FlatWorld Improving communication Making the workplace more enjoyable Motivating a team Getting to know each other Getting everyone “onto the same page,” including goal setting Teaching the team self-regulation strategies Helping participants to learn more about themselves (strengths and weaknesses) Identifying and utilizing the strengths of team members Improving team productivity Practicing effective collaboration with team members TYPES OF TRAINING • D&I training • • • • • • • • • • © 2023 FlatWorld Unconscious bias training Stereotyping Cultural awareness Creating an inclusive team Microaggressions, their meaning and how to address them Respect How to avoid biased language Intentional inclusion strategies Bystander intervention strategies as it relates to D&I Generational diversity topics TYPES OF TRAINING • Managerial training • • Training for someone who has been identified as a good manager candidate Examples • • • • Soft skills Motivation Delegation Technical training • Safety training • • © 2023 FlatWorld Ensuring employees are protected from injuries caused by work-related accidents Examples • • • • • • • Eye safety First air Food services safety Hearing protection Asbestos Construction safety Hazmat safety KEY TAKEAWAYS • There are several types of training we can provide for employees. In all situations, a variety of training types will be used, depending on the type of job. • Technical training addresses software or other programs that employees use while working for the organization. • Quality training is a type of training that familiarizes all employees with the means to produce a good-quality product. The ISO sets the standard on quality for most production and environmental situations. ISO training can be done in-house or externally. • Skills training focuses on the skills that employees actually need to know to perform their jobs. Mentors can help with this kind of training. • Soft skills are those that do not relate directly to our job but are important. Soft skills training may train someone on how to better communicate and negotiate or provide good customer service. © 2023 FlatWorld KEY TAKEAWAYS • Professional training is normally given externally and might be obtaining certification or specific information needed about a profession to perform a job. For example, tax accountants need to be up to date on tax laws; this type of training is often external. • Team training is a process that empowers teams to improve decision making, problem solving, and team-development skills. Team training can help improve communication and result in more productive businesses. • D&I training can be helpful in creating a workplace of inclusion and engagement. • To get someone ready to take on a management role, managerial training might be given. • Safety training is important to make sure an organization is meeting OSHA standards. Safety training can also include disaster planning. © 2023 FlatWorld LEARNING OBJECTIVE • Explain the types of training delivery methods. © 2023 FlatWorld TRAINING DELIVERY METHODS • On-the-job coaching delivery • An approved person training an employee on necessary skills • Mentoring training delivery • An employee is trained and developed by an experienced person • Lunch and Learn training delivery • © 2023 FlatWorld Training occurring during lunchtime, employees bring their food, and someone presents training information to them TRAINING DELIVERY METHODS • Web-based training delivery • • Technology is used to facilitate training Synchronous • • Learning using instructor-led facilitation Asynchronous • Learning is self-directed and there is no instructor facilitating the course • Job shadowing training delivery • • Places an employee who already has the skill with another who wants to develop those skills Examples • Apprenticeships • Job swapping training delivery • © 2023 FlatWorld Two employees agree to change jobs for a period of time TRAINING DELIVERY METHODS • Vestibule training delivery • • Training is performed near the worksite in conference rooms, lecture rooms, and classrooms Examples • • Orientations Skills-based training • International assignment training delivery • • Training for employees moving or working overseas Topics include • • • • © 2023 FlatWorld Cultural differences and similarities Insight and daily living in the country Social norms and etiquette Communications training, such as language skills KEY TAKEAWAYS • Training delivery methods are important to consider, depending on the type of training that needs to be performed. • Most organizations do not use only one type of training delivery method; a combination of many methods will be used. • On-the-job coaching delivery method is a training delivery method in which an employee is assigned to a more experienced employee or manager to learn the skills needed for the job. This is similar to the mentor training delivery method, except a mentor training method is less about skills training and more about ongoing employee development. • Lunch and Learn training delivery is normally informal and can involve personal development as well as specific job-related skills. • Web-based training is any type of training that is delivered using technology. • There are numerous platforms that can be used for web-based training and considerations, such as cost, when selecting a platform for use. © 2023 FlatWorld KEY TAKEAWAYS • A synchronous training method is used for web-based training and refers to delivery that is led by a facilitator. An asynchronous training method is one that is self-directed. • Job shadowing is a delivery method consisting of on-the-job training and the employee learning skills by watching someone more experienced. • To motivate employees and allow them to develop new skills, job swapping training delivery may be used. This occurs when two people change jobs for a set period of time to learn new skills. With this method, it is likely that other methods will also be used. • Vestibule training delivery is also known as “near site” training. It normally happens in a classroom, conference room, or lecture room and works well to deliver orientations and some skills-based training. Many organizations also use vestibule training for technical training, safety training, professional training, and quality training. • Since many companies operate overseas, providing training to those employees with international assignments can better prepare them for living and working abroad. © 2023 FlatWorld LEARNING OBJECTIVES • Design a training program framework. • Understand the uses and applications of a career development program. © 2023 FlatWorld TRAINING PROGRAM DEVELOPMENT MODEL © 2023 FlatWorld DESIGNING A TRAINING PROGRAM • Needs assessment and learning objectives • • • • Organizational assessment Occupational (task) assessment Individual assessment A learning objective is what you want the learner to be able to do, explain, or demonstrate • Consideration of learning styles • • • © 2023 FlatWorld Visual learner Auditory learner Kinesthetic learner DESIGNING A TRAINING PROGRAM • Delivery Mode • • • • • • • © 2023 FlatWorld On-the-job coaching Mentor Brown bag lunch Web-based Job shadowing Job swapping Vestibule training DESIGNING A TRAINING PROGRAM • Budget • The type of training performed depends on the budget available • Delivery style • What is the best style to deliver training, taking into consideration the delivery method? • Audience • • © 2023 FlatWorld How long have the trainees been with the organization? What departments do they work in? DESIGNING A TRAINING PROGRAM • Content • Requires a development of learning objectives and a brief outline of the major topics • Timelines • In what time frame should an employee complete the training? • Communication • How will you communicate the available training to employees? • Measuring effectiveness of training • © 2023 FlatWorld How will you know if your training worked? MEASURING EFFECTIVENESS © 2023 FlatWorld DESIGNING A TRAINING PROGRAM • Career development programs and succession planning • Talk to employees • Create specific requirements for career development • Use cross-training and job rotation • Utilize mentors © 2023 FlatWorld CAREER DEVELOPMENT PLANNING PROCESS © 2023 FlatWorld TECHNOLOGY IN TRAINING • Software and cloud-based options • Can assist in management of training • May need to track training if there are legal requirements for training (such as safety training) © 2023 FlatWorld KEY TAKEAWAYS • There are a number of key considerations in developing a training program. Training should not be handled casually but instead developed specifically to meet the needs of the organization. This can be done by a needs assessment consisting of three levels: organizational, occupational, and individual assessments. • The first consideration is the delivery mode; depending on the type of training and other factors, some modes might be better than others. • Budget is a consideration in developing training. The cost of materials, but also the cost of time, should be considered. • The delivery style must take into account people’s individual learning styles. The amount of lecture, discussion, role plays, and activities are considered part of delivery style. © 2023 FlatWorld KEY TAKEAWAYS • The audience for the training is an important aspect when developing training. This can allow the training to be better developed to meet the needs and the skills of a particular group of people. • The content obviously is an important consideration. Learning objectives and goals for the training should be developed before content is developed. • After content is developed, understanding the time constraints is an important aspect. Will the training take one hour or a day to deliver? What is the timeline consideration in terms of when people should take the training? © 2023 FlatWorld KEY TAKEAWAYS • Letting people know when and where the training will take place is part of communication. • The final aspect of developing a training framework is to consider how it will be measured. At the end, how will you know if the trainees learned what they needed to learn? • A career development process can help retain good employees. It involves creating a specific program in which employee goals are identified and new training and opportunities are identified and created to help the employee in the career development process. © 2023 FlatWorld
Purchase answer to see full attachment