TLDR;
This episode of HR Unplugged focuses on managing employee turnover and facilitating smoother job transitions. It covers strategies for aligning HR with management on turnover plans, addressing high turnover rates, preparing for potential layoffs, and supporting both departing and remaining employees during transitions. The discussion emphasizes proactive planning, consistent performance management, and empathetic leadership.
- Aligning HR with management on turnover plans and benchmarks.
- Managing large turnover transitions, including layoffs as a last resort.
- Supporting employees through transitions with clear plans and empathy.
Introduction [0:00]
The episode introduces the topic of managing employee turnover and facilitating job transitions. It encourages viewers to subscribe to the HR Unplugged series, join the HR Heroes Slack community, and participate in the interactive webcast by sharing thoughts and questions.
Understanding Employee Turnover [1:04]
The discussion begins by exploring why employees leave, emphasizing the importance of understanding turnover rates within the organization. It's crucial to differentiate between regrettable and non-regrettable turnover and to benchmark turnover rates by department against industry standards. The speakers highlight that high turnover can negatively impact team performance and productivity, while very low turnover might indicate underlying issues. Common reasons for employees leaving include dissatisfaction with their bosses and lack of clarity in their roles.
Aligning HR and Management on Turnover Plans [6:48]
HR leaders should analyze why employees are leaving and avoid negotiating with them once they've made their decision. Counter offers are generally discouraged because data shows that most employees who accept them leave within six to twelve months anyway. Recruitment plays a significant role in turnover rates, so recruiters must understand the company's culture and employer value proposition. Onboarding, training, and support systems are also critical for setting employees up for success.
Addressing High Turnover Rates [10:50]
Negotiating with employees to stay is not recommended; consistent pay practices should be maintained. Leaders need to separate their personal feelings from their professional responsibilities when employees leave. HR professionals should establish clear boundaries to balance caring for employees with the need to achieve business results. When employees leave, help them with a clear transition plan, assess the criticality of their role, and communicate next steps to all stakeholders.
Finding a Successor [15:53]
Leaders should always be developing potential successors within their teams. It can take three to five years to prepare someone for a role, but it's worth the investment for both personal and professional growth. For lean teams without backup, HR can collaborate with other departments like finance or IT for cross-training opportunities. Manage expectations by agreeing on what tasks can be covered during absences and what can wait. Create a "beach book" or continuity binder with essential information and resources.
Managing Layoffs [22:45]
Layoffs should be a last resort after all other cost-saving measures have been exhausted. If layoffs are necessary, it's better to cut deep once rather than through multiple rounds, which can severely damage organizational culture. Managing out low performers can be an alternative or preliminary step. HR leaders should influence workforce management strategies and pressure-test the need for senior-level replacements.
Alternatives to Layoffs [28:07]
Before resorting to layoffs, consider reallocating employees from low-workload areas to high-workload areas. Manage the hiring plan by reducing or eliminating net new hires and prioritizing internal mobility. Evaluate the real estate footprint and benefits offerings, using tools like conjoint analysis to determine which benefits are most valued by employees.
Avoiding Multiple Rounds of Layoffs [35:38]
To avoid multiple layoffs, consistently manage performance, control hiring, and review extraneous costs. Layoffs can significantly decrease productivity and negatively impact customer service and employee morale. If a layoff is unavoidable, prioritize caring for both the departing and remaining employees.
Supporting Employees During Layoffs [37:32]
Take care of both the people who survive and provide excellent care for those who are leaving. Companies should proactively use their networks to help laid-off employees find new jobs, offer extra severance and health benefits, and recognize the impact on their families. Remove biases against hiring individuals who have been laid off, and focus on their skills and experience.
Helping Employees When Letting Them Go [41:00]
When firing or managing someone out, show empathy and consider their primary concerns, such as severance and health insurance. Offer additional services like resume creation and interview preparation. Be honest, kind, and willing to provide references. Encourage networking and maintain relationships, as these connections can be invaluable during job transitions.
Q&A and Final Takeaways [42:46]
The episode concludes with a Q&A session and key takeaways, including aligning on turnover plans, managing large turnover transitions with layoffs as a last resort, and supporting employees through transitions with clear plans. The speakers express gratitude for the audience's participation and promote the next episode on AI in hiring.