retirement and other separations

RETIREMENT AND OTHER SEPARATIONSHUMAN RESOURCE MANAGEMENT

SEPARATION Employee separation is the process of efficiently and fairly terminating workers Separation means cessation of service or agreement with the organization for one or other reason.

BENEFITS OF EMPLOYEE SEPARATION Reduced labor costs Replacements of poor performances Increased innovation The opportunity for greater diversity

TYPES OF EMPLOYEE SEPARATION

TYPES OF EMPLOYEE SEPARATION 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.

VOLUNTARY SEPARATIONS

There are two types of voluntary separation i. Quit ii. VRS

INVOLUNTARY SEPARATIONSThere are 5 types of involuntary separations

i. Retirementii. Dischargeiii. Layoff iv. Retrenchmentv. Rightsizing

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RETIREMENT Retirement is the point where a person stops

employment completely. A person may also semi-retire by reducing work hours.

FACTOR AFFECTING RETIREMENT health status financial circumstances attachment to and conditions at work work-life balance caring and unpaid work responsibilities policy context labor market demand

TYPES OF RETIREMENT Retirement on Superannuation Voluntary Retirement Compulsory Retirement as a measure of

punishment Compulsory Retirement due to Administrative

Reason Death While in Service Retirement due to invalidation on Medical Ground

RIGHTSIZINGThe process of a corporation reorganizing or restructuring their business by cost-cutting, reduction of workforce, or reorganizing upper-level management. The goal is to get the company molded properly to achieve the maximum profit. The term rightsizing is often used by companies instead of downsizing because. it sounds less drastic

RETRENCHMENT Retrenchment means “discharge of surplus labor 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.

DISMISSAL Dismissal is where the employer chooses to require the employee to leave, generally for a reason which is the fault of the employee. The most common colloquial term for dismissal in America is "getting fired" whereas in Britain the term "getting the sack" or "getting sacked" is also used.

LAYOFF Layoff is the temporary suspension or permanent termination of employment of an employee or (more commonly) a group of employees for business reasons, such as when certain positions are no longer necessary or when a business slow- down occurs.

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

OUTPLACEMENT Outplacement is the efforts made by a downsizing company to help former employees through the transition to new jobs and help them re-orient to the job market. A consultancy firm usually provides the outplacement services which are paid for by the former employer and are achieved through practical advice and psychological support.

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

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