Employee Engagment

MANAGING
EMPLOYEE
RETENTION,
ENGAGEMENT,
AND CAREERS
1
• Describe a comprehensive approach to
retaining employees.
• Explain why employee engagement is

important, and how to foster such
engagement.
• Discuss what employers and supervisors can

Learning do to support employees’ careerdevelopment
needs.
Objectives
• List and briefly explain the main decisions
employers should address in reaching
promotion and other employee life-cycle
career decisions.
• Explain each of the main grounds for dismissal.
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2
Turnover is an expensive cost for organizations.
Understanding more about the costs and causes of turnover
is important.
Costs of turnover
Managing voluntary turnover
Reducing voluntary turnover
Managing
There are tangible and intangible costs associated with
Employee turnover. Reducing turnover requires identifying and
managing the reasons for both voluntary and involuntary
Turnover turnover.
Voluntary turnover occurs for many reasons. Topreasons

include job dissatisfaction, poor pay or health-care benefits,
few promotional opportunities, and inadequate work-life
balance.
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3
Identify issues with surveys :Any
retention strategy begins with
identifying the specific causes of
turnover within a particular company.
Use exit interviews and surveys to
Managing identify issues.
Employee Compensation :Manage high

Retention performers and key employees with
enhanced pay.
Selection :Remember, “retention starts

up front, in the selection and hiring of
the right employees.” The process
begins with a thorough understanding
of the jobs to be filled. It includes a
solid job analysis and an effective and
efficient hiring process.
Professional growth :Professional
growth is a well-thought-out training
and career development program that
Managing can provide a strong incentive for
staying with the company.
Employee
Meaningful work/ownership Providing
Retention career direction means discussing
employee’s career preferences and
prospects at your firm, and helping
them lay out potential career plans.
Furthermore, “don’t wait until
performance reviews to remind top
employees how valuable they are to
your company.”
Work–life balance : surveys found employees
are looking for flexible work arrangements and
telecommuting.
High engagement :Employee empowerment,

problem-solving groups, and self-directed
teams has a positive effect and reduced
Managing turnover.
Employee Data analytics :It takes sifting through data to

provide Nationwide Mutual Insurance Co.
Retention managers with monthly “scorecards” of
turnover data.
Counter offers :Employers who allow counter

offers need a policy that specifies what people
and positions are eligible for counteroffers.
Workforce planning :Identifying and preparing

for skills gaps can help reduce the turnover that
unexpected skills gaps can trigger.
Managing Employee Engagement
Gallup survey Watson Wyatt Worldwide survey
Business units that have employee Highly engaged employees generate 26%
engagement have 83% chance of performing higher revenue per employee
above the company median
Those with the lowest employee
engagement have a 17% chance
• Understanding how their department contributes to company
success Employee participation also improves engagement. For
example, Milliken & Co. uses employee participation safety teams
at one plant. The safety process consists of 16 employees on the
plant’s safety steering committee, which in turn governs 8
Employee employee safety subcommittees. The program appears to produce
high levels of safety engagement among employees, and significant
Actions That improvements in the plant accident rates.
Foster • Seeing how their efforts contribute to achieving company goals

Employees tend to be committed to and engaged in companies
Engagement that are committed to them. Such companies demonstrate what
psychologists call “perceived organizational support,” wherein the
employee perceives that the employer values his or her
contribution and cares about his or her well being.
• Get a sense of accomplishment from work at the company

Perhaps the best way to improve engagement is to remember that
engagement is a two-way street. Researchers measure such
organizational support with survey items such as, “The
organization values my contribution to its well-being”; “The
organization would understand a long absence due to my illness”;
and “The organization really cares about my well being.”
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8
Career terminology : career is “occupational positions a
person has had over many years.”
Career management is a process for enabling employees
to better understand and develop their career skills and
interests and to use these skills and interests most
effectively both within the company and after they leave
the firm.
Career Career development is the lifelong series of activities
Management (such as workshops) that contribute to a person’s career
exploration, establishment, success, and fulfillment.
Career planning is the deliberate process through which

someone becomes aware of personal skills, interests,
knowledge, motivations, and other characteristics;
acquires information about opportunities and choices;
identifies career-related goals; and establishes action
plans to attain specific goals.
1. Careers today : Recessions, mergers,
outsourcing, consolidations, and more or less
endless downsizing have changed the ground
rules. More often employees find themselves
having to reinvent themselves.
2. Psychological contract : What the employer
and employee expect of each other is part of
what psychologists call a psychological
contract. The psychological contract identifies
Career each party's mutual expectations.
3. The employee’s role : As in other parts of life,
Management an individual must accept responsibility for
his/her own career. He or she should assess
his/her own interests, skill, and values. Finally,
the employee must take the steps required to
ensure a happy and fulfilling career. One of
these steps is finding a mentor who can be a
sounding board. Mentoring programs can be
informal or formal.
• An experienced mentor who can help the person learn the
ropes is recommended for employee career development.
• Some employers create Web-based or offline libraries of
career development materials and offer career workshops
and perhaps individual career coaches for career
guidance.
The • A career planning workshop is “a planned learning event
Employer’s in which participants are expected to be actively involved,
completing career planning exercises and inventories and
Role participating in career skills practice sessions
• Career coaches generally help employees create 1- to 5-
year plans showing where their careers with the firm may
lead. Then, the employer and employee base the latter’s
development plans on what he or she will need to move
up.
▪ The manager can support his or her subordinates’ career
development needs by ensuring they have the right skills
and scheduling a regular performance appraisal.
▪ Schedule regular performance appraisals
▪ Provide the employee with an informal development plan
Is seniority or competence the rule? Today’s focus on
competitiveness favors competence. However, union
agreements and civil service regulations often emphasize
seniority.
Making How should we measure competence? Start by defining the

job, setting standards, and using one or more appraisal tools
Promotion to record the employee’s performance. Then, use a valid
procedure for predicting a candidate’s potential for future
Decisions performance.
Is the process formal or informal? Each firm will determine

whether the promotional process will be formal or informal.
Vertical, horizontal, or other? Promotions can be vertical

(within the same functional area) or horizontal (in different
functional areas).
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13
The Gender Gap
Making
Promotion
Decisions Today women constitute more
than 40% of the workforce,
but hold less than 2% of top
management positions.
• Eliminate barriers
• Improve networking, mentoring
• Have flexible career tracks
10-
14
• Look at Practical Considerations :There are several
practice steps that should be taken by employers and
managers:
• Establish eligibility requirements
• Review the job description
• Review candidates’ performance and history
Making • Hire only those who meet the requirements.
Promotion • Managing transfers :Transfers are moves from one job
to another, usually with no change in salary or grade.
Decisions The frequent relocating of transfer employees has
been assumed to have a damaging effect on
transferees’ family life. Transfers are also financially
costly.
• Managing retirements :Some employers are
instituting formal pre-retirement counseling aimed at
easing the passage of their employees into
retirement. A large majority of employees have said
they expect to continue to work beyond the normal
retirement age. Part-time employment is an
alternative to outright retirement.
Grounds for Dismissal
There are four bases for dismissal:
1. Unsatisfactory performance refers to a persistent
failure to perform assigned duties or to meet
prescribed standards on the job. 96 Specific reasons
include excessive absenteeism, tardiness, a persistent
failure to meet normal job requirements, or an adverse
attitude.
Misconduct is deliberate and willful violation of the
employer’s rules and may include stealing and rowdy
behavior.
Managing 2. Lack of qualifications for the job is an employee’s
Dismissals inability to do the assigned work, although he or she is
diligent. Because this employee may be trying to do the
job, it is reasonable to try to salvage him or her—
perhaps by assigning the employee to another job.
3. Changed requirements of the job is an employee’s
incapability of doing the job after the nature of the job
has changed. Similarly, you may have to dismiss an
employee when his or her job is eliminated. Again, the
employee may be industrious, so it is reasonable to
retrain or transfer this person, if possible.
The Exit Process and Termination Interview :Have exit interviews with
employees leaving the firm.
These are interviews, usually conducted by a human resource
professional just prior to the employee leaving.
Layoffs: Senior management plans all aspects of a layoff. A layoff, in

which the employer sends workers home for a time for lack of work, is
usually not a permanent dismissal.
Managing Adjusting to Downsizings :Downsizing means reducing, usually

dramatically, the number of people employed by a firm. The basic idea is
Dismissals to cut costs and raise profitability.
1. First is making sure the right people are let go; this requires having an
effective appraisal system in place.
2. Second is compliance with all applicable laws, including WARN.
3. Third is executing the dismissals in a manner that is just and fair.
4. Fourth is security, for instance, retrieving keys and ensuring that those
leaving don’t take prohibited items with them.
5. Fifth is reducing the remaining employees’ uncertainty and addressing
their concerns.
This typically involves a post-downsizing announcement and program,
including meetings where senior managers field questions from the
remaining employees.
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17

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MANAGING

• Explain why employee engagement is

• Discuss what employers and supervisors can

• Explain each of the main grounds for dismissal.

Voluntary turnover occurs for many reasons. Topreasons

Employee Compensation :Manage high

Selection :Remember, “retention starts

High engagement :Employee empowerment,

Employee Data analytics :It takes sifting through data to

Counter offers :Employers who allow counter

Workforce planning :Identifying and preparing

Gallup survey Watson Wyatt Worldwide survey

Foster • Seeing how their efforts contribute to achieving company goals

• Get a sense of accomplishment from work at the company

Career planning is the deliberate process through which

Making How should we measure competence? Start by defining the

Is the process formal or informal? Each firm will determine

Vertical, horizontal, or other? Promotions can be vertical

Layoffs: Senior management plans all aspects of a layoff. A layoff, in

Managing Adjusting to Downsizings :Downsizing means reducing, usually

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