LESSON # 8

STAFFING
 REVIEW QUESTION:

What is the most important

productive resource of an
organization?
INTRODUCTION

 As mentioned several times, people are the most important

productive resources in any organization.

 It is the people who plan, organize, decide, implement, and so

forth. It is the people who use money, materials, machines, and
methods. With their knowledge, skills, attitudes, values, and
intelligence, they can move their organizations to greater
heights.

 In short, the success of an organization depends on people.

INTRODUCTION

 In view of the vital role of people in the operations of an organization, the

process of staffing must therefore be done properly.

 An organization must be able to recruit the best and the brightest. It must be
the right person for the right job at the right time.

 Business organizations are very sensitive to whatever errors staffing errors are
made. Placing the wrong person in a highly specialized position like quality
control, may bring damage to the firm to cause its bankruptcy.

 Hiring an unqualified person may cause demoralization among employees who

have been serving the company well.
What is Staffing?
STAFFING defined
 Staffing is a management function which is composed of a series of steps
that intend to provide the organization with the right people in the right
jobs.
 Determines human resources needs, recruits, selects, trains, and develops
human resources fro jobs created by an organization.
 Is undertaken to match people with jobs created by an organization.
 Is one of the most important functions of management because It involves
the process of filling the vacant position of the right personnel at the right
job, at right time. Hence, everything will occur in the right manner.
 Some authors of management consider staffing as human resource
management.
STAFFING defined, cont’d

 It is a fact that human resource is one of the greatest for every organization
because in any organization all other resources like- money, material,
machine etc. can be utilized effectively and efficiently by the positive efforts
of human resource.

 Therefore it is very important that each and every person should get right
position in the organization so as to get the right job, according to their
ability, talent, aptitude, and specializations so that it will help the
organization to achieve the pre-set goals in the proper way by the 100%
contribution of manpower.

 Thus it can be said that it is staffing is an essential function of every business

organization
Functions of Staffing
 The first and foremost function of staffing is to obtain qualified
personnel for different jobs position in the organization.

 In staffing, the right person is recruited for the right jobs, therefore it leads to
maximum productivity and higher performance.

 It helps in promoting the optimum utilization of human resource through various

aspects.

 Job satisfaction and morale of the workers increases through the recruitment of
the right person.

 Staffing helps to ensure better utilization of human resources.

 It ensures the continuity and growth of the organization, through development

managers.
Importance of Staffing

 Efficient Performance of Other Functions

 For the efficient performance of other functions of management, staffing is its

key. Since, if an organization does not have the competent personnel, then it
cannot perform the functions of management like planning, organizing and
control functions properly.

 Effective Use of Technology and Other Resources

 What is staffing and technology’s connection? It is the human factor that is

instrumental in the effective utilization of the latest technology, capital,
material, etc. the management can ensure the right kinds of personnel by
performing the staffing function.
 Optimum Utilization of Human Resources

 The wage bill of big concerns is quite high. Also, a huge amount is spent on
recruitment, selection, training, and development of employees. To get the
optimum output, the staffing function should be performed in an efficient
manner.

 Development of Human Capital

 Another function of staffing is concerned with human capital requirements.

Since the management is required to determine in advance the manpower
requirements. Therefore, it has also to train and develop the existing
personnel for career advancement. This will meet the requirements of the
company in the future.
 The Motivation of Human Resources

 In an organization, the behaviour of individuals is influenced by various factors

which are involved such as education level, needs, socio-cultural factors, etc.
Therefore, the human aspects of the organization have become very important
and so that the workers can also be motivated by financial and non-financial
incentives in order to perform their functions properly in achieving the
objectives.

 Building Higher Morale

 The right type of climate should be created for the workers to contribute to the
achievement of the organizational objectives. Therefore, by performing the
staffing function effectively and efficiently, the management is able to describe
the significance and importance which it attaches to the personnel working in
the enterprise.
 Characteristics of Staffing

 People-Centered

 Staffing can broadly view as people-centered function and therefore it is

relevant for all types of organization. It is concerned with categories of
personnel from top to bottom of the organization.

 Blue collar workers (i.e., those working on the machines and engaged in
loading, unloading etc.) and white collar workers (i.e., clerical
employees).

 Managerial and Non Managerial personal.

 Professionals (eg.- Chartered Accountant, Company Secretary)

 Responsibility of Manager

 Staffing is the basic function of management which involves that the

manager is continuously engaged in performing the staffing
function.

 They are actively associated with the recruitment, selection,

training, and appraisal of his subordinates.

 Therefore the activities are performed by the chief executive,

departmental managers and foremen in relation to their
subordinates.
  Human Skills

 Staffing function is mainly concerned with different types of training

and development of human resource and therefore the managers
should use human relation skill in providing guidance and training to
the subordinates.

 If the staffing function is performed properly, then the human

relations in the organization will be cordial and mutually performed
in an organized manner.
 Continuous Function

 Staffing function is to be performed continuously which is equally

important for a new and well-established organization. Since in a
newly established organization, there has to be recruitment,
selection, and training of personnel. As we compare that, the
organization which is already a running organization, then at that
place every manager is engaged in various staffing activities.

 Therefore, he is responsible for managing all the workers in order to

get work done for the accomplishment of the overall objectives of an
organization
STEPS in the STAFFING PROCESS:

1. Human resource planning

2. Recruitment
3. Selection
4. Orientation
5. Training and development
6. Performance appraisal
7. Transfer, promotion and demotion
8. Separation/resignation
1. HUMAN RESOURCE PLANNING

 Human resource planning is primarily concerned with matching

the future demand for and supply of personnel requirements of
the organization.

 Personnel needs depend on the strategic plans of the

organization, and on the potential change in the external
environment of the organization.

 For instance, a plan for expansion of an organization requires

more employees.
 What Is Human Resource Planning (HRP) Used For?

 Human resource planning allows companies to plan ahead so they

can maintain a steady supply of skilled employees.

 The process is used to help companies evaluate their needs and to

plan ahead to meet those needs.

 Human resource planning needs to be flexible enough to meet

short-term staffing challenges while adapting to changing
conditions in the business environment over the longer term.

 HRP starts by assessing and auditing the current capacity of human

resources.
 What Are the Four Steps to Human Resource Planning (HRP)?
 There are four general, broad steps involved in the human
resource planning process.

 Each step needs to be taken in sequence in order to arrive at the

end goal, which is to develop a strategy that enables the
company to successfully find and retain enough qualified
employees to meet the company's needs.
1. Analyzing labor supply

 The first step of human resource planning is to identify the company's current
human resources supply. In this step, the HR department studies the strength of
the organization based on the number of employees, their skills, qualifications,
positions, benefits, and performance levels.

2. Forecasting labor demand

 The second step requires the company to outline the future of its workforce.
Here, the HR department can consider certain issues like promotions,
retirements, layoffs, and transfers—anything that factors into the future needs
of a company. The HR department can also look at external conditions
impacting labor demand, such as new technology that might increase or
decrease the need for workers.
3. Balancing labor demand with supply

 The third step in the HRP process is forecasting the employment

demand.

 HR creates a gap analysis that lays out specific needs to narrow

the supply of the company's labor versus future demand. This
analysis will often generate a series of questions, such as:

 Should employees learn new skills?

 Does the company need more managers?
 Do all employees play to their strengths in their current roles?
4. Developing and implementing a plan

 The answers to questions from the gap analysis help HR

determine how to proceed, which is the final phase of the HRP
process.

 HR must now take practical steps to integrate its plan with the
rest of the company. The department needs a budget, the
ability to implement the plan, and a collaborative effort
with all departments to execute that plan.
2. RECRUITMENT

 It is a process that involves everything from identifying, attracting,

screening, shortlisting, interviewing, selecting, hiring, and
onboarding employees. The recruitment teams can be large or small
depending on the size of an organization.The aim of recruitment is
to get many job applicants, for the organization to choose the most
qualified ones.

 Before recruitment is done, a job analysis should be developed to

determine job description and job specification.
7 Phases in a Recruitment Process

The recruitment lifecycle consists of seven interrelated steps which are as

follows:

1. Identifying the Hiring Needs

 Whether a job opening is newly formed or just vacated, you cannot find
what you need if you don’t know what you need in the first place. So,
your recruitment process should start with identifying the vacancies
that exist followed by analyzing the job specifications including the
knowledge, skills and experience needed for the role. Here’s how you
can determine your hiring needs:
Recruitment Process, cont’d.
 Figure out where the gaps are in your current team. Check if you have
new needs in terms of ability, performance or personality. Ask yourself if
you need someone to take care of something that is not being addressed
currently. This will tell you that there is a hiring need.

 Keep a track of input versus output when it comes to your team. See if
there is an increase in workload that needs to be addressed by hiring.

 Regularly analyse performance and make a list of missing qualities,

qualifications, skills and proficiencies that you need to add to your team.
This can also signal towards hiring needs.

 Be mindful of existing employees leaving. This is definitely when you will

have a hiring need.
 Factors That Influence Recruitment

 Size of the organization

 Salary structure

 Work culture and working condition within the organization

 The growth rate of the organization

 The current state of employment in the economy

2. Preparing the Job Description

 Once you know exactly what you need in terms of knowledge, skills and
experience, it is time to determine the duties and responsibilities of the
job.

 Preparing a comprehensive job description (JD) will help you know what
your potential employees must have in order to meet the demands of the
role. More importantly, it provides your prospects with a checklist or a
list that they can compare themselves to before applying. It is a tool to
ensure that you get applications from the right candidates (hopefully).

 A job description must include all of the following and can be as

comprehensive as you want:
Checklist to Crafting the Perfect Job Description
 Company Name & Description
 Core Values
 Benefits Offered
 Location
 Job Title
 Department
 Industry Pay
 Description of Duties
 Demand (specific skill set, knowledge, experience or training
required for the job)
3. Talent Search
 Identifying the right talent, attracting them and motivating them to apply
are the most important aspects of the recruitment process. The job listing
should be advertised internally to generate referrals as well as externally on popular
social networking sites and preferred job boards. Recruiters can also conduct job fairs
and promote openings in leading industry publications to cast a wider net.

 Two sources of recruitment that can be tapped for a talent search:

 Internal Sources of Recruitment
When recruiters use internal sources for recruitment, it works to motivate the
existing employees to be more productive and maximizes their job satisfaction and
sense of security. Recruiting through internal sources also reduces the attrition rate along
with cost and effort.

 External Sources of Recruitment

Recruiting through external sources offers a much wider scope for selection from a
big number of qualified candidates. The process moves much faster even for bulk
requirements while eliminating the chances of partiality or biases.
4. Screening and Shortlisting

 In order to move forward with the recruitment process, you need to screen and
shortlist applicants efficiently and accurately. This is where the recruitment
process gets difficult and challenging. You can resolve this recruitment bottleneck
by following these four steps:

 Steps to Effectively Screen or Shortlist Candidates

 Screen applications on the basis of minimum qualifications.

 Next, sort resumes that have the preferred credentials by looking at their
certifications, relevant experience, domain expertise, technical competencies
and other specific skills that are required for the role.
 Then, shortlist candidates who have both the preferred credentials and the
minimum qualifications.
 Finally, flag any concerns or queries in the resume so they can be clarified
during the interview.
5. Interviewing
 The shortlisted applications will now move through the interview
process prior to receiving an offer letter or a rejection note.
Depending on the size of the hiring team and their unique recruitment
needs, several interviews may be scheduled for every candidate.

 Telephonic Screening/Video Interviewing

 This is a quick, easy and convenient way to screen candidates

and their capabilities. The telephonic or video interview is
also your first opportunity to leave a lasting first impression on
your potential employees.
6. Evaluation and Offer of Employment

 This is the final stage of the recruitment process. You should never take
it for granted that the candidate will accept your offer. However, if your
candidate has patiently completed all the paperwork and waited through
the selection process, the odds of accepting the offer are high.

 Things you Should do Once you Zero in on a Candidate

 The recruitment process is not easy, so if you have a structured format

to follow, you wind up with more time to stay focused on finding the
right fit for your business.
7. Introduction and Induction of the New Employee

 When applicants accept the job offer, they officially become the employees
of the company. The joining date and time is communicated to the employee.

 Pre-employment screening will follow that includes reference and background

checks are conducted.

 Once the verification is done, the employees are then introduced to the
organization.

 The induction process of the employees follows, a welcome kit is usually given
to the new employees, and then the employment contract is signed.
3. SELECTION
What is the Selection Process?
 Is directed towards finding the right talent for vacancies within the
organization. Typically, it is similar to filtering through a series of funnels to
find the solution via elimination.

 The recruitment and selection process varies by industry, organization, and

department. Positions differ on the grounds of responsibility and criteria.
Step-by-step Guide to the Employee Selection Process

1. Preliminary Interview
 Once a requirement is posted, a company may receive hundreds of thousands
of applications.

 The preliminary interview is conducted to weed out all candidates who do not
meet the essential eligibility criteria – educational qualifications, required
skill sets, proven certifications, and experience. Candidates may also be
assessed based on their background and level of interest.

2. Receiving Applications

 After preliminary interview, candidates must fill out a standard application

form that collects bio-data, qualification, experience, background, and
educational information and other info such as hobbies and interests.
3. Screening Applications

 This stage includes shortlisting potential candidates from the pool of

applicants who applied. This will be done by the screening committee composed
of department heads.

 Screening can include multiple criteria, including educational prowess, relevancy

in terms of experience, etc. The interview details and requirements are shared
with potential candidates via a call or email.

4. Preliminary Tests

 Preliminary tests are an essential part of the job selection process. Screening
committee assess the aptitude, IQ, emotional intelligence, proficiency, and
personality of candidates; the test is usually conducted within the premises of
the enterprise.
5. Employment Interview

 It is a face-to-face conversation that puts candidates on their feet. This

step signals how well he/she fits into the company tenet.

 During this stage, companies provide a detailed brief of the job profile, including
the roles and responsibilities that the candidate is expected to shoulder.
Likewise, the candidate is encouraged to share his/her concerns or queries with
the employer.

6. Checking References

 Contacting references allows employers to verify their understanding. Through

discussions with references who vouch for the candidates’ professionalism and
work ethics, they may discover other qualities about him/her.
5. Employment Interview

 It is a face-to-face conversation that puts candidates on their feet. This

step signals how well he/she fits into the company tenet.

 During this stage, companies provide a detailed brief of the job profile, including
the roles and responsibilities that the candidate is expected to shoulder.
Likewise, the candidate is encouraged to share his/her concerns or queries with
the employer.

6. Checking References

 Contacting references allows employers to verify their understanding. Through

discussions with references who vouch for the candidates’ professionalism and
work ethics, they may discover other qualities about him/her.
7. Medical Examination

 Modern companies are viewing medical fitness (both mental and physical) as a
cost function. A healthy employee would require fewer sick leaves and handle
stress relatively quickly, allowing greater productivity in dynamic, fast-paced
environments.

8. Final Selection

 Candidates who have successfully qualified through all rounds of the recruitment
and selection in HRM receive an offer/appointment letter from the organization.

 Candidates receive a temporary position with an assurance of permanency on

completion of the probation period. The appointment letter typically includes all
such details, including salary and company policies, among others.
4. ORIENTATION
 Orientation familiarizes the new employees with the policies, guidelines, and
procedures of the organization.

 Orientation is done within the first week of employment and provides knowledge
on the following:

 Payroll system – The employees receive compensation as per the rates and
frequency stated in the employment contract.

 Performance management process – The work of the employee is monitored

continuously, and evaluated periodically, in the performance year.

 Reward policy – Employees who achieve and exceed performance expectations

qualify for commissions, bonuses, recognition, and career development
opportunities.
4. ORIENTATION, cont’d.

 Disciplinary procedure – The conduct of all employees must be in line

with applicable professional, legal, and ethical standards.

 Health and safety program – All employees must have Personal

Protective Equipment (PPE) in the workplace.
5. TRAINING AND DEVELOPMENT

 What is training and development in HRM?

 Training and development in Human Resource Management (HRM) refers

to a system of educating employees within a company.

 It includes various tools, instructions, and activities designed to improve

employee performance. It's an opportunity for employees to increase their
knowledge and upgrade their skills.
5. TRAINING AND DEVELOPMENT, cont’d

 Purposes of training and development in HRM

 Increase company productivity

 Training them to use advanced tools and technology might improve their
efficiency. Moreover, being more confident in their abilities will make them
more motivated to work.

 Also, they'll be able to face challenges and adapt to changes quickly. In like
manner the company will be promoting a culture of learning in your
workplace. The act of learning together can help employees bond with each
other better.

 All of these factors might contribute greatly to your company's productivity

5. TRAINING AND DEVELOPMENT, cont’d

2. Improve product or service quality

 Training and development programs are an opportunity for experts within

the company to share their techniques. Employees will get to learn tips and
best practices for their work in a short span of time. This will allow them
to create better products or provide more satisfying services.

 Adequate training of employees involves giving them the same set of

instructions. This leads to uniformity in their methods and output.
5. TRAINING AND DEVELOPMENT, cont’d

3. Lessen employee turnover

 Research has shown that training and development has a positive impact on
employee turnover;

 Employees will appreciate the company's investment in their development;

 Will strengthen employees’ sense of job satisfaction, belongingness, and

commitment;

 Will also lead them to have a better relationship with the organization. As a result,
will decrease their intentions to leave and increase the company's workforce
retention. It's a win-win situation for everyone.
5. TRAINING AND DEVELOPMENT, cont’d

4. Decrease costs and errors

 If the company has highly trained employees, there are few mistakes being made
every day. As a result, less time and resources are spent on redoing incorrect
work.

 Also, product malfunctions and improper delivery of services are generally

frowned upon. They might involve additional expenses, too. Properly trained
employees know how to use materials efficiently. Thus, the company will spend
less because waste and spoilage are minimal.

 This applies to machinery as well. A trained employee will know how to take care
of equipment. This will lead to lesser breakdowns and a longer lifespan for the
machinery.
5. TRAINING AND DEVELOPMENT, cont’d

 Training and Development consists of 5 related processes. These

processes do not have a distinct beginning, middle, and end. Instead,
they overlap with each other to carry out their intended purpose.

 The processes are:

 Assessment of training needs and resources
 Motivation of trainers and trainees
 Design of training programs and materials
 Delivery of training
 Process and outcome evaluation
6. PERFORMANCE APPRAISAL
 What is a Performance Appraisal?
 A performance appraisal is a systematic and periodic process of measuring an
individual’s work performance against the established requirements of the job.

 It’s a subjective evaluation of the employee’s strengths and weaknesses,

relative worth to the organization, and future development potential.

 Performance appraisals are also called performance evaluations, performance

reviews development discussions, or employee appraisals.

 A successful performance appraisal, the employer can handle what the

employee does best and identify areas that require improvement. Appraisals
also come in handy for deciding how to fill new positions in the company
structure with existing employees.
6. PERFORMANCE APPRAISAL, cont’d.
Types of Performance Appraisals

Performance appraisals can be broken down into four distinct significant types:

1. 360-Degree Appraisal - the manager gathers information on the employee’s

performance, typically by questionnaire, from supervisors, co-workers, group
members, and self-assessment.
2. Negotiated Appraisal – this type of appraisal uses a mediator to help evaluate
the employee’s performance, with a greater emphasis on the better parts of the
employee’s performance.
3. Peer Assessment - the team members, workgroup, and co-workers are
responsible for rating the employee’s performance.
4. Self-Assessment -he employees rate themselves in categories such as work
behavior, attitude, and job performance.
7. TRANSFER, PROMOTION AND DEMOTION


‍
What is Employee Transfer?
‍
 Is the process of horizontal movement of an employee, wherein there is a change
in the job, without any changes or revision in the remuneration, pay, and
modification of responsibilities.

 It is a form of internal mobility, in which the employee is shifted from one job to
another usually at a different location, department, or unit.

 Transfer can either be temporary or permanent depending on the decision of the

organization, and it is initiated by any of the two, i.e. employer or employee.

 Sometimes, it also includes promotion, demotion or even no change in the status

and responsibility.
7. TRANSFER, PROMOTION AND DEMOTION

 What are the reasons for Employee Transfer?

‍
 Every organization has a defined criteria for the transfer of employees, and it also
varies from individual to individual. The primary reasons for employee transfer are:

 Some positions require distinctive skills, competency, and expertise from the
transferred employees.

 Shortage of employees in one department of the organization due to high

demand, and there are surplus employees in another department. So, the
workers are shifted from one department to another.

 It is also initiated when there are some clashes between the superior and
subordinate or between two workers.
7. TRANSFER, PROMOTION AND DEMOTION

 What are the types of Employee Transfers?

1. Production Transfer‍- Production transfer is usually practised to prevent lay-off

that is to say when there is a surplus of the workforce in the factory,
excess workers are laid off. But, if they are transferred to another factory or
plant, where there is a shortage of labour, the massive layoff can be.
‍
2. Replacement Transfer‍- This form of transfer also helps in preventing lay-off of
senior employees by replacing a junior employee. The organization opts for
this transfer when there is a continuous decrease in the operations, and the
organization wants to retain an employee who has been serving the
organization for a long time.
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

‍
3.‍ Versatility Transfer‍- To make the employees competent and versatile, these
transfers are initiated. It is also called job rotation which can be commonly
seen in banks where employees working at clerical levels has to work at
different profiles.
‍
4. Shift Transfer‍- In general, industrial establishments operates on rotational
shifts, and the workers usually request a transfer to the shift of their choice.
‍
5. Remedial Transfer‍- When the initial placement of an employee is faulty, or the
worker is not comfortable with the superior or with the coworkers, or there
are some health issues, then these transfers are affected as a remedy to the
situation. As the transfer is requested by the employee himself, it is also
called s a personal transfer.
‍
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

 What are the rules relating to Employee Transfer?

 ‍The transfer must be clearly, stated as temporary or permanent.

 Transfer criteria should be laid down clearly and strictly complied with.

 The interest of the organization should be kept in mind while framing the transfer
policies.

 The effect of transfer on the salary and other things of the transferred employee
must be specified clearly.

 The frequency of transfer must be known to all the employees along with the
minimum period of transfer.

 The performance of the employee must be evaluated before making the transfer, to a
different job or department.
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

 What is employee promotion?

 Employee promotion is when a company raises a member of its team to

a higher or more specialized position. Promotions usually involve one or
more of the following:
 Pay increase
 New title
 Changes in job responsibilities
 More decision-making power
 A leadership role
 Specialization
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

 What are the rules relating to Employee Transfer?

 ‍The transfer must be clearly, stated as temporary or permanent.

 Transfer criteria should be laid down clearly and strictly complied with.

 The interest of the organization should be kept in mind while framing the transfer
policies.

 The effect of transfer on the salary and other things of the transferred employee
must be specified clearly.

 The frequency of transfer must be known to all the employees along with the
minimum period of transfer.

 The performance of the employee must be evaluated before making the transfer, to a
different job or department.
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

 Promotions are also a huge motivator for employees. People connect

promotions to recognition, career growth, and job satisfaction. Pay increases
mean extra economic security, too.
‍
 There are three main types of employee promotion: vertical, horizontal, and
dry.
1. Vertical promotion –
 Give employees more or different responsibilities, a higher salary, and a new
job title.

 Vertical promotions are an excellent way to recognize high performing

employees and fill vacant positions that can benefit from an internal
perspective. They also signal to your people that the company values their
career growth.
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

2. Horizontal promotion

 Horizontal promotions mean a pay raise and a new job title but no change to the
role itself. These promotions work well to reward tenure, acknowledge new
qualifications, and boost retention. For example, horizontal promotion is a
common practice in universities — in many institutions, lecturers become senior
lecturers after five to seven years.
‍
3. Dry promotion

 Dry promotions are as bad as the name suggests. This is when an employee
receives extra responsibilities, but nothing else. Avoid them at all costs. They
chase away employees by making them feel undervalued and unappreciated, and
are not a people-oriented practice.
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

 What is a demotion?

 A demotion is a permanent reassignment to a lower position than the employee

previously held. The position will typically have less responsibility or required
skill, as well as a lower pay grade than the previous position.

 Demotions can be voluntary or involuntary, and they can occur as a result of poor
employee performance, position elimination, disciplinary actions, or
organisational restructuring. A demotion in HRM allows a company to keep a
valuable employee by returning him or her to his or her previous position.

 However, the employee may not react well to the demotion, and if the demotion
is the result of employee misconduct, it may send the message to other
employees that the company is lax about disciplinary action.
7. TRANSFER, PROMOTION AND DEMOTION, cont’d.

 Reasons to demote an employee

 Employees can be demoted for a variety of reasons, including:
 The employee delivered a subpar performance.
 The employee lacks the necessary skills for their current position.
 Getting rid of the employee's job.
 Disciplining the employee for his or her misbehavior
 An employee may also voluntarily request a demotion. Some reasons why an
employee might request a demotion:

 The employee wishes to have fewer responsibilities.

 The employee is resigning from your company.
 The employee wishes to change jobs.
 The employee wishes to rebalance their work-life balance.
 The employee wishes to work remotely or from a different business location,
but his or her current position does not allow for this.
8. SEPARATION/RESIGNATION
 Types of employment separation
 There are many ways for an employee or an employer to discontinue their
working relationship. While some types of employment separation may be
initiated by the employee and others by the employer, each circumstance is
unique. Here is a list of different types of employment separation:

1. Termination
o One of the most popular ways to pursue employment separation is through
termination. There are several types of employment separation that fall
under this category that may provide guidance to employers or employees
seeking a change.
8. SEPARATION/RESIGNATION, cont’d.
 Some common types of termination:
 Constructive discharge: There are some work environments that employees may
find challenging, even after they have attempted to improve their situation
multiple times. In these instances, the employee can choose to leave the
company through a constructive discharge, which can benefit them by offering
them some of the same rights as a discharged worker if their case for leaving is
strong enough.

 Layoff: When a layoff occurs, an employee is let go through no fault of their own
due to changing business needs, such as an acquisition or restructuring of
departments. Future employers usually view being laid off more favorably than
being let go for other reasons, and employees who are laid off may receive
extended benefits and job search assistance to help them pursue a new career
path they enjoy.
8. SEPARATION/RESIGNATION, cont’d.
 Termination by mutual agreement: A termination by mutual agreement occurs
when both the employee and the employer agree to a separation. This type of
arrangement can benefit both parties by giving the employer time to hire someone
new and the employee an opportunity to plan for the next phase of their career.

 Involuntary termination: An involuntary termination takes place when an

employer chooses to let go of an employee. The reasons for an involuntary
termination can vary, but typically the employee is still willing and able to work,
which can make it easier for them to find employment elsewhere.

 Voluntary termination: A voluntary termination takes place when an employee

leaves a company of their own free will. For example, an employee may pursue
voluntary termination when they accept a job offer with another company or when
they decide to retire from their role.
8. SEPARATION/RESIGNATION, cont’d.

 Temporary job or employment contract ends: If an employee is working with a

company through a temporary job or a contract, the company may let them go
when their agreement ends. Both parties are aware of the final date of
employment in these situations, which often allows them to part on good terms
and provides the potential to work together again in the future.

 Fired: Sometimes an employee and an employer aren't a great match. An

employer may choose to fire an employee in these cases so both parties can
pursue other opportunities that align with their interests and goals.

 Termination for a cause: If an employee is terminated for a cause, the employer

lets them go for a specific reason. While this news may be challenging to receive,
an employee who understands why they were terminated may accept this as a
learning experience and use the employer's feedback to improve themselves
professionally.
8. SEPARATION/RESIGNATION, cont’d.
 Termination with prejudice/bias : An employer may choose to terminate an
employee with prejudice if they don't plan to hire the employee for the same job
again in the future. While this may also be challenging news to receive, it
provides both the employee and the employer with clarity and a fresh start.

 Termination without prejudice/bias : If an employee is terminated without

prejudice it means they may be eligible to be rehired by the company in the
future. This type of termination typically occurs when an employee is let go for
reasons other than their performance and gives them the opportunity to apply for
jobs with the company again later in their career if they wish to do so.

 Wrongful termination: Wrongful termination occurs when an employer dismisses

an employee unlawfully. Since there are laws that exist to protect employees, the
employee may be able to receive compensation if they have a strong enough
case, which can help them move forward with their career.
8. SEPARATION/RESIGNATION, cont’d.

 Resignation
 Many people see resigning from a job as a professional and courteous way to pursue
employment separation, which can help employees discuss their departure from a
company with future employers while maintaining a positive demeanor/conduct.
The most common types of resignation include:

 Voluntary resignation: A voluntary resignation happens when an employee chooses

to leave a company for their own benefit. Employees typically provide their
employer with at least two weeks' notice to make arrangements before they leave,
which can make the transition easier for both parties.

 Forced resignation: There are some challenging situations where an employer may
ask an employee to resign or else the company must let them go. This option gives
employees the opportunity to leave their current role without being terminated,
which can work favorably for them when it's time to find a new job.
8. SEPARATION/RESIGNATION, cont’d.

 Retirement
 As an employee nears the end of their career, retirement is often a popular
topic of discussion. While many employees look forward to this milestone,
there are several reasons they may retire from their current position,
including age, health, finances and personal preferences. Here are some of
the most common types of retirement:

 Voluntary retirement: For many professionals, the end goal in their career
is to retire. When you reach this exciting milestone, you may go through
the process of resigning from your company voluntarily.
8. SEPARATION/RESIGNATION, cont’d.

 Phased retirement: Companies may implement a phased retirement plan

for employees who are older. This can help both parties adjust by slowly
reducing the employee's work hours prior to their official retirement date.

 Mandatory retirement: An employer may implement a mandatory

retirement to encourage an older employee to retire for a variety of
reasons. This can provide employees with the opportunity to pursue other
interests outside of work and allow the company to train someone new to
fill their role.
8. SEPARATION/RESIGNATION, cont’d.

 Reasons for employment separation

 Employee performance: An employer may choose to let go of an employee if
their work expectations don't align with each other. In these cases, the employee
may be better suited for a different type of work or find success with another
company.

 New job opportunity: An employee may accept a new job opportunity to help
them reach their personal, professional or career goals. Employees can usually
leave on good terms with their current employer if they provide at least two
weeks' notice for them to hire a replacement.

 Finances: An employer may choose to furlough or lay off employees to save

money so they can sustain their company long term. An employee may also seek
employment separation for financial reasons if another company offers them a
position with a better salary or benefits.
8. SEPARATION/RESIGNATION, cont’d.

 Retirement: As employees get older, they may choose to retire so they

can spend more time pursuing their interests outside of work. Retirement is
often mutually beneficial for the employee and the employer who may wish to
acquire new talent to fill the open position.

 Relocation: An employee may choose to move for a variety of reasons, such as to

be closer to family or to support a change in their spouse's career. In these cases,
leaving their current job may give them the opportunity to relocate.

 Change in family dynamic: Employees may choose to leave a company based on

changes within their family dynamic, such as having a child or becoming the
primary caregiver for a loved one. This type of employment separation may be
temporary or permanent.
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