Welcome to

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 Human Resource Management

Learning outcomes:

 Understand the difference between personnel management and

human resources
 Understand how to recruit employees
 Understand how to reward employees in order to motivate and
retain them
 Know the mechanisms and cessation of employment

Julie Owen
 Development of Employment Legislation

The spectrum of employment law in the UK covers three main areas:

 Employment Rights
 Equalities and Discrimination law
 Health and safety legislation

Legal measures are European Union (EU) treaties and

directives, the European Convention on Human Rights and Fundamental Freedoms 1950, British
statute law, the common law of contract and of tort, case law, statutory codes of practice and some
international standards.
 Key Employment Legislation

Team Task
1. Match Legislation Title with Year and description
2. Integrate key social and political events from our recent history

Outcome
A washing line that represents a timeline of how employment rights have developed and how this
fits in around key historical events
 Key Legislation Development

Equal Pay Act 1970

Employees who do equal work or work of equal value must receive the same pay
as workers of the other sex

Health & Safety Act 1974

Employer must ensure the health, safety and welfare of employees whist at work

Sex Discrimination Act 1975

It is unlawful for an employer to discriminate against people on the grounds of
their sex

Race Relations Act 1976

It is unlawful for an employer to discriminate against people on the grounds of
race, ethnic group or colour
Disability Discrimination Act 1995
Unlawful to discriminate against disabled persons in connection with employment,
the provision of goods, facilities and services and failure to make reasonable
adjustments.

A “disabled person” is defined as a person who has a physical or mental impairment

which has a substantial and long-term effect (i.e. more than 12 months) on his or
her ability to perform certain everyday tasks.

Working Time Regulations 1998

Provisions relating to the maximum number of hours which employees can work per
week – currently 48 hours per week as averaged over a 17 week
reference period. Employees can agree to opt-out of the maximum weekly limit on
working hours.
Employment Protection Act 1978
Employees must be given a written contract of employment. It protects against
unfair dismissal (without good cause) and says that redundancy pay must be paid
if the worker has served more than two years and their job is to be abolished.

Asylum and Immigration Act 1996

All employers in the United Kingdom to make basic document checks on every
person they intend to employ. By making these checks, employers can be sure
they will not break the law by employing illegal workers.
British citizenship, National European Economic area, or work permit.

Public Interest Disclosure Act 1998

Provisions designed to protect workers who “blow the whistle” on their employers’
fraudulent, criminal or dangerous activities. The ability to “gag” employees has
been affected, employers must bear this in mind when imposing confidentiality
restrictions on employees.
National Minimum Wage Act 1998
This piece of legislation was introduced for the specific purpose of allowing the
Government to set a minimum wage rate at which employees should be paid. There are
various different methods for calculating the national minimum wage, depending on the
type of work done by an employee. The National Minimum Wage is the minimum pay per
hour almost all workers are entitled to by law. It doesn’t matter how small an employer is,
they still have to pay the minimum wage.

The Equality Act 2010

It requires equal treatment in access to employment as well as private and public
services, regardless of the protected characteristics of age, disability, gender
reassignment, marriage and civil partnership, race, religion or belief, sex, and sexual
orientation and pregnancy/maternity.
Supersedes all other anti-discriminations laws UK. www.gov.uk
 Discrimination – Direct or Indirect?

Direct discrimination
This arises where an employer treats an employee less favourably than he/she
would treat another employee because of that employee’s sex, race, disability,
sexual orientation, religious belief or age.

Direct discrimination is, for the most part, always unlawful, unless a genuine
occupational requirement
in the relevant legislation can be relied upon.
Direct Discrimination occurs when someone is treated less favourably than another person
because of a protected characteristic they have or are thought to have or because they
associate with someone who has a protected characteristic.

Associative Discrimination
This already applies to Race, Religion or Belief and Sexual Orientation. It is now extended to
cover Age, Disability, Gender Reassignment and Sex. This is direct discrimination against
someone because they associate with another person who possesses a protected
characteristic.

Perceptive Discrimination
This already applies to Age, Race, Religion or Belief and Sexual Orientation. It is now
extended to cover Disability, Gender Reassignment and Sex. This is direct discrimination
against an individual because others think they possess a particular protected characteristic.
It applies even if the person does not actually possess the characteristic.
 The Equality Act 2010
Direct Discrimination occurs when someone is treated less favourably than
another person because of a protected characteristic they have or are thought
to have or because they associate with someone who has a protected
characteristic.

Associative Discrimination
This already applies to Race, Religion or Belief and Sexual Orientation. It is now
extended to cover Age, Disability, Gender Reassignment and Sex. This is direct
discrimination against someone because they associate with another person
who possesses a protected characteristic.

Perceptive Discrimination
This already applies to Age, Race, Religion or Belief and Sexual Orientation. It is
now extended to cover Disability, Gender Reassignment and Sex. This is direct
discrimination against an individual because others think they possess a
particular protected characteristic. It applies even if the person does not
actually possess the characteristic.

11
 Discrimination – Direct or Indirect?

Indirect discrimination
This arises where an employer applies a requirement or condition which although it appears to be
applied equally to all employees, a substantial proportion of the members of a particular protected
group cannot comply. This type of discrimination will not be unlawful if the employer can objectively
justify it. Although the precise definitions in the individual pieces of anti-discrimination legislation are
slightly different,

Indirect Discrimination
This already applies to Age, Race, Religion or Belief, Sex, Sexual Orientation and Marriage and
Civil Partnership. It is now extended to cover Disability and Gender Reassignment.

Indirect Discrimination can occur when you have a condition, rule, policy or even a practice in your
organisation that applies to everyone but particularly disadvantages people who share a protected
characteristic.
 Comply or Not Comply?

What are the consequences of not complying with current employment legislation?

For the employee?

For the organisation?
Comply Or Not Comply?

Employees
Legal, morale and ethical duty of care
Breach of contract, dismissal, business into disrepute
Personal and corporate liability

Organisation
Legal, morale and ethical duty of care
‘Personal duty of care to each employee’
Business reputation
Employee morale and engagement
Employer of choice
Corporate liability
Prosecutions, fines and sanctions
 Voluntary and Legal Compliance

CIPD – Voluntary Regulatory Body

directs Professional Standards and values/ qualifications,
good practice and resources
www.cipd.co.uk

ACAS – Arbitration and Conciliatory Advisory Services

ACAS is the regulatory body, shares the minimum legal
requires and directs and advises on how to implement this
– shares good practice - ACAS Code of Practices
www.acas.co.uk

Employment Tribunals (ET)

How do working people enforce their rights?

Normally, complaints about individual employment rights are made to an

employment tribunal.

It is possible for a complainant (the employee or worker) or a respondent employer

to appeal, on a point of law, to the Employment Appeal Tribunal (EAT);

and, then, usually with permission, to the Court of Appeal (or Court of Session in
Scotland); and, then, to the Supreme Court (until October 2009, the House of
Lords).
 Employment Tribunal
1964 Industrial Tribunals
Cover employment rights (e.g. all strands of equality law, equal pay,
maternity and parental rights, rights of trade union membership,
unlawful pay deductions) www.justice.gov.uk

1998 renamed Employment Tribunal

Operate under the Employment Tribunals Act 1996 and the
Employment Tribunals (Constitution and Rules of Procedure)
Regulations 2004

A Tribunal
A full tribunal comprises three people. It is chaired by an employment
judge, a legally qualified person. He or she may sit alone or may be
assisted by two lay people who have experience of employment
relations and are drawn from an employer list
 ET – the costs

• The article explains how Employment Tribunals work out what to

award ex employees who have won their unfair dismissal claim.
• There are two awards - the basic award and the compensatory
award. The basic award is a fixed amount calculated in the same
way as a statutory redundancy payment. This award is based on
gross weekly wage but is subject to a maximum of £430 per week (in
2012).
• The first stage in the calculation of the compensatory award is to
work out 'actual losses'. The second calculation by the Employment
Tribunal is an estimate of future losses. This would take into account
what the employee has done to find a job and whether the employee
has actually found a job
 ET – Upper Limits

Breach of contract £25 000

Statutory Redundancy £14250
Unjustifiable disciple by Union £92585
Unfair dismissal £78335
Additional award if not re-instated £24700
 Discrimination pay-outs reach new high - ACAS

A record amount of compensation awarded in discrimination cases was paid out in 2011,
according to a recent survey by the Equal Opportunities Review (EOR). Awards totalled
£8.77 million last year, £3.5 million more than in 2010.

However, very large pay-outs in two NHS cases are primarily responsible for the record
sum. One case involving an "extensive process" of sex and race discrimination against a
female doctor resulted in an award of almost £4.5 million, including compensation for loss
of earnings up to retirement. This is thought to be the largest award in a UK discrimination
case.

In the other case a senior NHS worker, who had been subjected to racial discrimination
and unfair dismissal, was awarded almost £1 million.

Taken at face value, the average 2011 pay-out is £38,848 per case. But if the two
exceptionally large pay-outs are excluded, the average pay-out drops to £15,130, a small
increase on the 2010 average of £13,624.
Personnel v Human Resource Management

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 Difference between HRM and the traditional term Personnel Management?
Personnel Manager of a factory or firm was the person in charge of ensuring
employee welfare and interceding between the management and the
employees. In recent times, the term has been replaced with HR manager.

Personnel Management
Traditionally the term personnel management was used to refer to the set of
activities concerning the workforce which included staffing, payroll, contractual
obligations and other administrative tasks. In this respect, personnel
management encompasses the range of activities that are to do with managing
the workforce rather than resources.
Personnel Management is more administrative in nature and the
Personnel Manager’s main job is to ensure that the needs of the workforce
as they pertain to their immediate concerns are taken care of. Further,
personnel managers typically played the role of mediators between the
management and the employees and hence there was always the feeling
that personnel management was not in tune with the objectives of the
management.

Human Resource Management

HRM concentrates on the planning, monitoring and control aspects of
resources whereas Personnel Management was largely about mediating
between the management and employees.
 Personnel Management and HRM: A Paradigm Shift ?

Cynics might point to the fact that whatever term we use, it is finally “about
managing people”. The answer to this would be that the way in which people are
managed says a lot about the approach that the firm is taking. For instance,
traditional manufacturing units had personnel managers whereas the services
firms have HR managers.

While it is tempting to view Personnel Management as archaic and HRM as

modern, we have to recognize the fact that each serves or served the purpose
for which they were instituted. Personnel Management was effective in the
“smokestack” era and HRM is effective in the 21st century and this definitely
reflects a paradigm shift in the practice of managing people.

Many experts view Personnel

Management as being workforce centred
whereas HRM is resource centred
Recruitment & Selection

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Learning Outcomes

• Describe the recruitment & selection process

• Become aware of current working patterns
• Understand what work force planning is and why this is required
• Discuss the various stages and processes
• Explain how to plan and deliver assessment centres / competency
based interviews
• Share the importance of behaving with objectivity
• Explain the importance of equality and diversity throughout this
process
• Evaluate the cost of getting recruitment and selection wrong
Definitions

Recruitment – the process of attracting the

best qualified candidate for a job vacancy,
in the most timely and cost effective
manner

Selection – the process of assessing and

selecting the best appointable candidate
 Reasons to recruit staff

• Leavers
• Business expansion
• Cover sick leave
• Development of new
• Retirement product or service
• Cover maternity • Entering into a new
• Seasonal ‘peaks and market
troughs’ • To attract new skills
• Staff transfers /
relocation
 Changes in employment patterns

The way we work is changing rapidly:

Increase in flexible working
Increasing number of single-parent families
More women seeking work
Aging population
Technologies allows employees to communicate more effectively
No longer ‘a job for life’
In order to compete businesses need to understand and respond to
these changes if they are to recruit and retain staff!
 Flexible working

• Increased numbers of people in the UK are now working ‘flexibly’

• 8 million part time workers
• 4 million full time workers who have flexible hours / methods of working
 Benefits of flexible working
To the organisation:
Can be used as a strategy to
attract and retain staff
Reduces absenteeism
Increases commitment,
motivation and engagement
Increases productivity
Allows extension of operating
hours / days
Winder availability of
workforce
Reduction in costs (office fees
etc.)
To the individual
Allows increased work/life
balance
More time to spend with
family
Reduction of childcare costs
Reduction of travel / travel
during peak times
Reduction in travel costs
Types of flexible working

• Part time hours

• Job share
• Working from home
• Compressed hours
• Flexi-time
• Annualised hours
• Staggered hours
• Phased retirement
 What is workforce planning?

‘Work force planning is about deciding

how many and what types of workers
are required’
 Workforce planning

Business can’t succeed without the right staff with

the right skills
Work force planning identifies both current AND
future needs of the organisation
HR can tailor it’s recruitment and selection strategy
around this
Stages of workforce planning
 Recruitment methods – Internal vs. External

• Internal recruitment:
• Jobs given to staff who are already employed by the
business
• Involves promotion and reorganisation

• External recruitment:
• Staff are recruited externally from adverts, online /
social medial, agencies, job centre, head hunters &
personal recommendation
 Internal recruitment
Advantages:
• Cheaper and quicker to recruit
• Provides opportunity for development
• Recognises and rewards talent
• Increases retention levels
• Internal talent already know the organisation and how it operates

Disadvantages:
• Already aware of strengths / weaknesses
• Limits pool of candidates
• Lack of new ideas brought in externally
• Can cause resentment between teams
• Creates another vacancy which needs to be filled
 External recruitment

Advantages:
• External candidates bring in new ideas
• Wider pool of talent
• Ability to recruit specialist skills
• People have a wider rage of experience /
qualifications

Disadvantages:
• Takes longer
• Cost of advertising / recruiting the role
• Selection process may not be effective enough to
reveal the best candidate
The recruitment process

1. Define requirements – using job description /

person specification

2. Attract potential employees – through job

advertisement

3.Select the right people – through interview /

assessment
 Defining the role

• Job description
• Details the roles and responsibilities of the post
• Refers to the post rather than the person

• Person specification
• Sets out qualifications, skills, experience and personal attributes a
successful candidate should possess
• Refers to the person rather than the post
Job description
• Responsible for the day to day
running of the salon
• Ensure that the salon is running
smoothly and efficiently
• Ensure that staff are allocated
the correct work loads for their
skills
• Guarantee client satisfaction is
maintained at all times
• Ensure that treatments provided
are of a high standard
• Driving sales to ensure the
business is profitable
Person specification

Uses initiative when making decisions

Exemplary organisational skills
Good time keeping
Can work under pressure
Strong leadership qualities
Excellent knowledge of beauty therapy
industry
Fair and professional
Up to date knowledge of health and safety
regulations
Exceptional customer care skills
Placing a job advertisement Internal recruitment

• Notice boards
• Staff intranet / magazines and
news letters
• Email

External recruitment

• Online (jobs boards / social

media)
• Newspapers and magazines
• Job centre
• Jobs fairs
• Job agencies
• Advert in store
 Considerations when advertising

Type of job
Senior roles may require adverts in national newspapers / specialist
magazines / job agencies or via head hunters
Semi-skilled jobs may only need to be advertised locally to attract high quality
candidates
Recruitment budget
Different types of advertisement cost more
Readership and circulation
How many relevant people does the medium reach?
How many hits does the website attract?
Frequency
How often does the business wish to advertise the post?
A good job advert is…

Accurate Describes the job and its requirements

Short Not too long winded, covers just the important ground

Honest Doesn’t make claims about the job / business that will
later prove false
Positive Gives the applicant a positive feel about the
organisation
Relevant Provides details that the prospective applicants need
to know (shift-patters, qualifications required etc.)
 Exercise

Consider the role of salon manager, in your

groups write a short advertisement which
could be used to recruit into this role and
consider sources of advertising this
 A good advert should provide..

• Details of the business (name, brand location and activities)

• Outline the job (job title & main duties)
• Highlight the experience / qualifications required
• Provide details of salary, rewards and benefits
• Confirm the application process and closing date
 Salon Manager job advertisement

TMC Salons are currently looking to recruit a dynamic, passionate salon manager

In charge of the day to day running of an efficient and friendly salon reflecting the salon
brand principles and service standard where employees maintain a highly creative,
passionate approach to all aspects of the hairdressing industry, therefore creating a
professional yet exciting working environment.

You must have an understanding of all aspects of the hairdressing industry, changing fashion
trends while also keeping up to date with new collections within the hairdressing industry,
whilst have the ability to manage, lead and motivate a highly successful team.

Applicants must possess a relevant Level 3 hair or beauty qualification along with both trade
and managerial experience

Salary - £25,000 – 30,000 per annum, plus fantastic benefits

To apply, please visit www.tmcsalon.com
Closing date – 31st May 2016
Short listing candidates

• Long list = total pool of

applicants
• Short list = all suitable
applicants whom meet the job
criteria

• Should be done by two people

to ensure consistency and
fairness
• The short list should only
include candidates who meet
the people specification
Consider the kinds of assessment methods
you could use when recruiting a salon
manager
Methods of Assessment

Assessment:
• Aptitude testing
• Personality testing
• Intelligence testing
• Group discussions
• Presentations
• Role plays

Interviews:
• Competency based interview questions
• Technical based interview questions

Using the right assessment method can increase the chances of

appointing the right candidate
 Competency Based Interviewing

• Competency interviewing are specially designed

questions which obtain information about a candidates
previous behaviour/experience

• If an a candidates past work experience demonstrates

an organised approach, this would be a good indicator
of their ability to do this on the job
Examples of Competency Interview Questions

Can you give me an example of How do you organise

when you came up with a your day to day
different approach to a problem workload?
or situation?

Tell me about a time when

you have worked
successfully within a team. Can you give me an
example of a time you
have had to work to
team and / or
individual targets?
 Skills of a good interviewer

An interviewer should:

• Have good listening skills

• The ability to build rapport
• The ability to ask the right questions
• Be inquisitive, but not challenging
• Display positive body language
• Summarise to clarify understanding
• Takes notes to refer back to
• Selects the best candidate based on
performance
 Structure of Interview

• Welcome and rapport building 3 mins [5%]

• Introduction to the interview 3 mins [5%]
• Gathering information 45mins [75%]
• Giving information 5 mins [8%]
• Summarising and closing 4 mins [7%]
How we judge people

• Stereotypes
• Halo/ Horns effect
• Contrast effect
• Primacy and Recency
• Over emphasis on negative
information
Case Study One - Jane

You are conducting a day of selection interviews for Salon Manager

and await your last candidate of the day, Jane.

You are concerned as the rest of the candidates did not sufficiently
meet the Role Profile.
You conduct Jane’s interview and are feeling much more hopeful as
the interview progresses, as Jane has demonstrated most items on
the Role Profile.

However as the interview draws to a close, Jane explains to you

that she is four months pregnant.

What do you do next?

Case Study Two – Michelle

You are due to conduct interviews for stylist role which involves
evening work due to the nature of the business. You are planning
your areas of questioning and you note that one of the candidates,
Michelle is a single mother.

Can you discount her application on the basis that she may not
be able to work these hours?

If you do shortlist Michelle, how do you explore if she will be

able to perform the evening work?
 Case Study Three – Carlos

As part of a selection process for a Cleaner role, your

supervisor has asked all candidates to complete a written
exercise to identify that their standard of written English is
fluent.

One the candidates, Carlos, comes from a country where

English is not their first language and refuses to complete the
exercise.

Do you think this is a reasonable assessment method?

How should you deal with Carlos and his application?
 Post selection

Next stages:
• Job offer (verbal and written)
• Reference checks
• ‘Right to work’ checks
• DBS checking
• Induction process
• Probationary period
What do you think are the true costs
of getting Recruitment & Selection
WRONG?
 The true cost of high turnover
Recruiting and Selection Costs:
Time shortlisting, advertising costs, providing candidates with information about the job,

Interviewing Costs:
Time spent contacting candidates, scheduling interviews, preparing paperwork and
conducting the interviews

Selection Costs:
Time spent making the selection, contacting the candidate, drafting contracts, setting up
IT access/ accounts, scheduling the start date and arranging induction process, uniform
and on-job training
Orientation and Training:
Induction (Both local and HR), training of systems and any ‘On Job’ training

The Costs of Short Staff:

Impact on customers, The cost of low productivity while recruiting, staff morale whilst being
short staffed and increase cost of using sessional staff

Legal Costs:
Discrimination tribunal awards and legal costs, reputation of the organisation
Reward and Motivation

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 Motivation

Organisations rely on the efforts of staff to ensure the organisation meets its
current and future aims and objectives.

Discretionary effort, where individuals display commitment to the organisation by

taking on extra duties, lead to higher levels of organisational performance

Motivation is based on the setting of incentives. Individuals are motivated if they

believe that if they adopt a certain course of action some form of reward will be
provided.
 Intrinsic V Extrinsic Motivation

Intrinsic motivation – internal factors that have an impact on an individual’s own

sense of development and well-being. Rather than external materialistic
incentives the individual is motivated by relationships with key stakeholders,
personal development, and the extent to which the work itself is fulfilling.

Extrinsic motivation – external rewards or incentives such as extra pay and

benefits (those with a monetary / value benefit) that are given to individuals to
motivate them.
Reward Strategy
Encouraging behaviours to meet organisational objectives
 Rewarding individuals for their performance / value created
 Attracting, motivating and retaining talent
 Maximising organisational performance
 Ensuring equity in pay & reward
Equal Pay Act 1970 which made it unlawful to pay men or women less if
they are undertaking:
 Same/ similar role / roles of equal value
Rewards

Arguably financial rewards may only incentivise, motivate and

engage staff in the short term.
Generally:

 Money attracts individuals to an organisation

 Money and benefits retain individuals
 Incentives (both intrinsic and extrinsic) motivates staff to
achieving higher levels of individual and sustainable
organisational performance
Reward systems…and total reward

• A reward system - incentivised to enhance both their own and the organisation’s
performance.
• Individual aims, objectives and key performance indicators,
• Assessment of reward against targets set, and
• Review of targets set and agreement of the reward levels
• Total reward involves a blend of basic pay, contingent pay (e.g. performance-
related pay), benefits (e.g. extra holidays, healthcare) and non-financial rewards
(e.g. job satisfaction, development).
• In essence it is a mixture of extrinsic and intrinsic rewards.
Benefits

Benefits are a vital part of the reward package in that they:

1. can provide additional inducements to attract, motivate and retain;

2. can be tailored to meet individual needs; and
3. provide additional financial incentives in terms of ‘tax-breaks’
Flexible benefits (or menu / cafeteria benefits)

This is more suitable for organisations that need to compete

for talent to achieve competitive advantage.
Pick and choose benefits that will suit their particular needs or

For example, a parent may take advantage of extra leave,

crèche facilities and childcare vouchers, but later they may
choose different benefits if their needs change.
Finishing Employment

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 Learning Outcomes

Explain legal aspects of finishing employment for both employer and employee
Define what is employee resignation
Describe how to manage an employee exit professionally
Discuss good practice in finishing employment
Oxford Economics (2014) estimate the
average cost of recruiting a new member of
staff in the UK as:

£30,6144
 Why Do Employees Finish Employment?

Voluntary
Resignation
Retirement
Pregnancy/maternity

Forced
Redundancy
TUPE
Constructive dismissal
 What is resignation?
 Clear statement by the employee to the employer that they
are going to leave the job - most employers expect this to
be put in writing
 Threatening to leave, or saying they are looking for another
job, isn't the same as formally resigning
 A resignation can't be taken back, unless the contract
allows or employer agrees
 Final pay is on the normal pay day unless the contract says
differently – there is no right to ask for early payment
 As long as notice is in line with the terms of the contract the
employer must accept the resignation
Notice periods

Notice you must give your employer

• The statutory minimum amount of notice you must give
is one week when you've worked for your employer for
one month or more. If your contract requires you to give
more notice than one week then you should give it.

Notice your employer must give you

• Whatever your contract says, your employer must give
you at least the statutory minimum period of notice. This
will depend on how long you've worked for them:
• One week if you've been continuously employed for
between one month and two years
• One week for each complete year (up to a maximum of
12) if you've been continuously employed for two or
more years
Your P45

When you stop working for an employer, or you stop

employing, you have a statutory obligation to provide the
P45 form

This is a record of the pay that has been earned and the
tax that's been paid so far in the tax year

The employee needs to give a P45 form to the new

employer
 Forced resignation

 Dangerous working conditions or your boss's behaviour,

you may be able to claim constructive dismissal

 If you are thinking about claiming constructive dismissal,

you should raise the problem as a grievance before you
resign

 ET can refuse to hear your constructive dismissal claim

or reduce the amount of compensation you receive if this
has not been addresses as a grievance

 Constructive dismissal is not always easy to prove - be

careful and take legal advice.
 Managing retirement

Repeal of Retirement Age Provision 2011

 Employers cannot issue notifications to retire
 Cannot set a compulsory retirement age for employees
 Retirement is when an employee chooses to retire
 Your employer can only make you retire if they can justify
this in the particular circumstances
Good practice
Grey workforce is managed with increased flexibility
Strategic Talent and Succession planning
 Why do employees resign?

Induction crisis – after the first day/few weeks

No show – fail to turn up
Career progression – after a few years service

The longer an employee is with you the most

likely they are to stay – use to working
environment
 What is the cost of turnover to the business?

Recruitment and advertising new role

Impact on customer service and business reputation
Increased payroll
Impact on team morale and productivity

It is important to understand the motivation for leaving

the business.
Consider the above issues and the potential impact on
existing employees if no improvements are made.
 Conducting the exit survey

Ascertain why the employee us leaving and establish what

their attitude to the following s:
• The job itself
• Line management
• Pay and terms and conditions
• Training and career prospects
• Working conditions
• Equal opportunities

Completed with objectivity

Not line manager, confirm confidentiality and the reasons for,
and assure this will not impact on any references.
 Good Practice – Close Professionally

Conduct exit surveys/attitude surveys

Conducted with confidentiality /by an impartial third party
Act upon information shared
Can working conditions be improved?
Can line management be improved?
Ask existing employees to contribute?

Manage a professional exit and transition into new role

Share skills – knowledge management – induction/training
Succession and talent planning
Brain drain – human capital flight
A "company" is just a legal entity. A "business" is a collection of desks and
computers. No one resigns because of that. It's the decisions, the
motivation, the atmosphere, the ethos, the support, the training, the vision,
and the direction set by the leadership that they will follow.

Or not.

So, next time you get a resignation, resist the temptation to laugh it off as
"another dumbo who doesn't get us."

Take a moment to reflect on what it actually is they are resigning from.

It's not the departing employee who doesn't "get it." It's not the company
they are leaving.

It's you. (Graham Savage)

THANK YOU