| |
|Impact and Costs of Voluntary Separation |
|MGMT 430 | |
| |
| |
|12/12/2012 |

| |

Every executive should recognize the need for not only satisfied loyal customers, but also satisfied loyal employees as they are both equally important resources and are key to the organization’s success. Therefore, keeping satisfaction amongst the organization’s employees should radiate satisfaction amongst the organization’s investor and/or customers. Unfortunately, keeping everyone satisfied is easier said than done and organizations should be prepared to handle the impact and costs that come with voluntary separation aka termination of employment initiated by an employee (Noe, Hollenbeck, Gerhart, & Wright, 2013). More often than not, employees that have chosen to leave the company are those whom an organization would rather keep as their skills and/or knowledge are highly valued by said organization. One of the major impacts an organization will face when voluntary separation happens within an organization is finding a suitable replacement for the vacant position while trying to keep costs at a minimum. This obstacle seems highly unlikely as research has shown that highly valuable employees are up to 300 %(citation will be required here because you’re providing a number fact that is most likely unknown to most of the general population) more productive than an organizations average employee so the search for the replacement will require extensive recruitment and interviewing sessions. Once an employee has been hired an organization has the added expense of training the new recruit. In the end an organization has costs associated with recruiting, interviewing, hiring, and training the future replacement. According to the article “Employee Retention: What Employee Turnover Really Costs Your Company”, by Ross BlakeCITE!!, an organization’s expense for replacing an $8.00 per hour employee is about $3,500.00 and the costs are incrementally higher as replacing middle level employees is estimated to cost 150 % of their annual salary and up to 400% for specialized high level employees. To say the organization will go through minor disruptions after a voluntary separation is putting it extremely lightly. You should try to avoid using the word “you” in a term/research paper. It is making the assumption that the reader agrees with your point of view, which they may not. Plus, this paragraph is only one sentence when it could be a few. The reading of the one sentence is awkward. Example re-write: A shocking amount of organizational time and resources are devoted to voluntary separation cases. The various costs associated with replacing a valuable employee are staggering. These costs can be increased if the employee chooses to create unwanted drama that can reflect poorly upon the organization in the court of public opinion. If you are shocked with all the work an organization has to go through in dealing with voluntary separation cases then you would be surprised to hear that things can get even worse than just having to replace a valuable employee, a company may have to deal with the voluntary separation of an employee that feels so wronged by the organization that he/she have decided to leave the organization in such a highly dramatic style that the organization will have to deal with the repercussions of this dramatic exit more particularly the bad publicity it will receive. ⇨ Try not use Let’s. It’s the same principle as using “you”. Lets take for example the now infamous case of the Jet Blue flight attendant that went on a rant In today’s competitive markets, we all know publicity is a tool that will help an organization grow by simply exposing what it has to offer to the public. Good publicity can come in many forms with the most important one being word of mouth by satisfied customers and/or investors. Bad publicity can be very costly for an organization and lead to irreparable damage to the organizations reputation; unfortunately the negative publicity a company will get from having an employee quit in such a dramatic way is simply unavoidable. This negative publicity can lead to loss of clients the possibility of driving away potential clients and even the loss of investors. An organization now not only has to deal with the process and costs of replacing a highly valuable employee it now has to go through the process of dealing with the management of the negative publicity. The negative publicity triggered by this angry, now “ex” employee has now opened a metaphorical can of worms for the organization, as it now has to worry about dealing with angry customers, misleading interpretations of blogs/forum posts/interview excerpts, and the rumors that will inflict the most damage. The organization knows what caused the damage, how it spread and has experienced some of the effects or may be bracing for the following effects stemming from the negative publicity: • Business may have difficulty flourishing • Firms may call back all their products • Value of shares may plummet • Organization may have to spend large amounts of money in compensation and/or severance which may financially strain the organization
The next step in the process of managing negative publicity would then require the organization to create a plan of counter-attack by either putting a team of its best minds together or hiring an outside firm to facilitate in counter measures with which to,,,,,,,public view point
I’m not sure what else you have planned for content, but maybe consider discussing the psychological effects of the departure of a voluntary separation to the employees that remain. I came across some very good information regarding the various “costs” of turnover for my paper. Employees who leave can definitely do a lot of damage to the employees who remain, especially if the employee was a key decision maker or manager. Just a thought…