HR Essentials: Employee Turnover, Recruitment, and Compensation
Human Resources Management
Employee Turnover
How employees feel about the work environment and the compensation they receive is crucial. Without effective systems, companies lose money, resources, and time as employees seek better places to work and higher compensation.
Calculating Employee Turnover
A company divides the number of resignations by the total number of employees at the end of the same 12-month period.
Formula: (Resignations ÷ Total number of employees)
Recruitment
The process of attracting qualified candidates to fill open positions.
- Internal recruiting: Looks at current employees as candidates.
- External recruiting: Hiring candidates from outside the company.
Selection Process
Gathering applicants’ information and basing hiring decisions on the qualifications and education necessary for the position.
Orientation
Helps new employees become acquainted with the company, employees, and policies, and provides training to help them succeed.
Job Enrichment
Empowering employees to make their job more challenging by adding new skills and knowledge and allowing them to make decisions about their work. It improves employee motivation.
Job Rotation
The process by which an employee learns several jobs within an organization. It motivates and helps employees broaden their skills.
Performance Appraisals
Formal evaluation of employees’ skills and productivity.
360-Degree Feedback Evaluation
A comprehensive tool that collects reviews from peers, supervisors, and subordinates and combines them into one feedback report.
Types of Compensation
- Hourly wage: A set amount paid per hour. Overtime (paid at one and one-half times the hourly rate) applies after 40 hours.
- Salary: Specific compensation, regardless of overtime (common in professional positions).
- Commissions: Pay awarded as a percentage of sales, motivating employees to sell more.
- Incentive payments (bonus): Additional payments to normal wages as a reward for outstanding performance.
- Lump-sum salary increases: A one-time bonus or the right to purchase stocks based on performance.
- Profit sharing: Bonuses paid to employees that come from the company’s profits.
Collective Bargaining
The process by which union representatives negotiate employee contracts with employers.
Strikes
A technique used by labor or non-labor union workers where employees stop working to inflict financial hardship on an organization.
Lockout
When a company’s management orders a temporary work stoppage or denies employment during a labor dispute.
Boycott
Employees or customers stop buying or using a company’s goods or services as a protest.
Leading
Consists of all activities undertaken to help people achieve the highest level of performance.
Leading vs. Managing
- Managing is about coping with complexity.
- Leadership is about coping with change.