Employee Mobility and Separation
- Meaning of terms used in employee mobility
- Types of employee mobility
- Meaning of terms used in employee separation
- Employee separation methods
EMPLOYEE SEPARATION
Definition
Separation of an employee takes place when his service agreement with organization comes to an end due to resignation, retirement, death, dismal and by-offs.
1. Resignation – It is a voluntary separation initiated by the employee who may resign on
Grounds of ill-health marriage, a better organization. Sometimes an employee may be asked to resign as an alternative to termination on grounds of gross negligence of duty. It is a compulsory resignation initiated by the employer. Some resignations may enable the organization to ratty mistakes in hiring of the employees and bring in talents from outside. However excess (terminal work) of employees is costly to the organizations due to investment in recruitment selection and training that is lost. For this purpose exit interviews should be conducted with the employee who is leaving the organization.
The main requirements for a successful exit interviews are;-
a. It should win the employees confidence by assuring him that whatever he says will be kept strictly confidential.
b. Explain to the employees that the purpose of the interview is to improve the organization climate.
c. The interview/ should be conducted by a responsible officer from human resource department.
d. The interview should try to find out the real cause of resignation.
e. It should assure the employees to the organization continuing interest in his welfare.
f. It should present him his final payment and wish him good luck.
RETIREMENT
It is the main cause of separation from the organization. They are of three kinds;
a) Compulsory retirement
An employee must retire after attaining specific age. In Kenya it is 60 years.
b) Premature retirement
An employee may retire before attaining the specific age due to bad health, disability, family problems etc. i.e. He gets full benefits of retirement.
c) Voluntary retirement
When an organization want to cut down its operations or to shut down. It may give an option to its employees with certain minimum service for voluntary retirement in return for a lump sum payment. This is collect golden handshake.
Employees require preparation through communication and counseling. Some organizations extend medical and insurance benefits. The human resource management department and the immediate supervisor of the retiring employee should bid the employees farewell. He is also thanked for his services and given a gift. He may be requested to suggest improvement in the organization. All the dues and benefits should be paid to him before the farewell.
3. Layoff
Demand of employment for reasons beyond the control of the employer e.g. fluctuation in demand, breakdown of maduven power shortage raw materials.
This is a temporary removal of an employee from the payroll of the organization due to circumstances beyond the control of the employer. it may last for an indefinite period. However the employer is not terminated and is expected to be called back in future. It’s a temporal denial of employment. The laid off employee should satisfy employment some conditions depending on country’s legislation.
4. Retrenchment
This is permanent termination of an employee. Termination of services could be due to slow economic reasons and poor demand for products.
It normally creates a sense of insecurity and resentment among employees. Therefore the following conditions should be the;
a. The employee must be given one month notice in writing indicating reasons for retrenchments or given wages in new view of a notice.
b. The employee must be paid compensation equal to 15 days Wages for every completed year of service.
c. In absence of any agreement, employee must be first terminated.
d. Retrenched employees must be given performance for future employment.
e. In organization with more than 100 workers the government should be given 3 months notice.
5. Dismissal
This is termination of employee’s service as a way of punishment for misconduct or unsatisfactory performance. This means the employees has persistently failed to perform the job according to the required standards.
He has no potential to improve his performance. This after a verbal warning is written warning. Misconduct means the deliberate violation of rules and regulations. It includes discipline, insubordination and dishonesty. An employee should be served with an advanced notice to explain his position.
Dismissal is a drastic step and should therefore be handled with care and should be the last step after attempts have failed.
The dismissal procedure consists of the following steps;
i) Conducting preliminary inquiry
ii) Issuing change sheets
iii) Appointment of disciplinary
iv) Conducting detailed equity
v) Passing orders of termination as dismissal.
vi) Hearing appeals.
The following actions may be taken to minimum layoff resulting from ups and downs of economy cycle.
(i) Attrition
It means that employment policy to reduce the company’s workforce by not filling job vacancies created by retirement and resignation of employees.
(ii) Hiring Freeze
This involves not hiring new employees for a certain period.
(iii) Job redesign
Changing job design and transferring employees to different units of the company can be alternative to layoff. Companies can now use job sharing when it is possible to reconfigure one job into two part time jobs highly paid workers may be devoted to lower paid job.
(iv) Freeze on pay increase
Management may freeze increase in pay and employees benefit.
(v) Voluntary efforts
Voluntary retirement schemes (VRS) may be offered to appropriate class or employees during economic downturn to avoid layoffs.
Benefits of Separations
1. Reduced labor costs
2. Replacement of poor performers
3. Increased innovation
4. Opportunity for diversity.
Please notes on employee mobility and separation