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

Costs
Costs

RecruitmentCost
Recruitment Cost SelectionCost
Selection Cost TrainingCost
Training Cost SeparationCost
Separation Cost

Advertising
Advertising Interviewing
Interviewing Orientation
Orientation SeparationPay
Separation Pay

Direct
Direct
CampusVisit
Campus Visit Testing
Testing Benefits
Benefits
TrainingCost
Training Cost

Unemployment
Unemployment
RecruiterTime
Recruiter Time ReferenceChecks
Reference Checks TrainersTime
Trainers Time
InsuranceCost
Insurance Cost

LessProductivity
Less Productivity
SearchFirm
Search FirmFees
Fees Relocation
Relocation ExitInterview
Exit Interview
DuringTraining
During Training

Outplacement
Outplacement

VacantPosition
Vacant 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 Layoffs

Retirements Discharges

Retrenchment
 Involuntary separations
It 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 separations
A 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