Chapter 7: Retention and Motivation

Can the survey be given as a whole or measure only one facet? What does the value of the scale help an HR manager do? Then it allows for the manager to do what?

-Yes -can measure job satisfaction over a period of time and compare current results to past results; even compare job satisfaction at one company vs industry; -consider changes in the organization ex: compensation structure and see how job satisfaction is impacted by the change

List psychological withdrawal characteristics: List physical withdrawal characteristics:

-disengagement in job and/or with team members -less organizational commitment -become less productive -leave the job -internal transfer -absent and tardy

List behavior change characteristics:

-if unionized, increased grievances -whistle-blowing -change of conditions, such as applying for other jobs

What are some other reasons for employee turnover?

-low job satisfaction -poor and ineffective leadership or management -conflicts with supervisors or managers -perceptions of unfair treatment -non-competitive benefits and/or compensation compared to industry -personal issues (such as health or childcare issues) -conflicts with company mission and values -feeling unappreciated -relocation of partner or spouse

What are 5 things to consider when developing an employee satisfaction survey?

1. Communicate the purpose and goal of the survey. 2. Once the survey is complete, communicate what changes have been made as a result of the survey. 3. Assure employees their responses will be anonymous and private. 4. Involve management and leadership in the survey development. 5. Ask clear, concise questions that get at the root of morale issues.

Name 5 components of a retention plan:

1. JDI survey results, other survey results, and exit interview findings 2. Current retention plans, strengths, and weaknesses 3. Goals of a retention plan (e.g., reduce turnover by 10 percent) 4. Individual strategies to meet retention and turnover reduction goals. 5. Budgeting.

What are 5 of the most common reasons employees leave organizatons?

1. a poor match between the job and the skills of the employee 2. lack of growth 3. internal pay equity 4. management 5. workload

Name the top 6 motivation factors:

1. achievement 2. recognition 3. the work itself 4. responsibility 5. advancement 6. growth

Name the top 6 hygiene factors:

1. company policies 2. supervision 3. relationship with manager 4. work conditions 5. salary 6. relationship with peers

What are 3 considerations surrounding pay as a way to retain employees?

1. instituting a standard process 2. a pay communication strategy 3. paid time off

List 4 indirect turnover costs:

1. lost knowledge 2. loss of productivity while new employee is brought up to speed 3. cost associated with lack of motivation prior to leaving 4. cost associated with loss of trade secrets

Name 6 theories on job dissatisfaction:

1. progression of job withdrawal 2. Hawthorne studies 3. Maslow's Hierarchy of Needs 4. Herzberg two-factor theory 5. McGregor X-Y theory 6. carrot and stick

List 7 direct turnover costs:

1. recruitment costs 2. advertising costs for new position 3. orientation and training of new employee 4. severance costs 5. testing costs 6. time to interview new replacements 7. time to recruit and train new hires

Name 10 retention strategies:

1. salary and benefits 2. training and development 3. performance appraisals 4. succession planning 5. flextime, telecommuting, and sabbaticals 6. management training 7. conflict management and fairness 8. job design, job enlargement, and empowerment 9. pay-for-performance strategies 10. work-life balance

What are the two types of turnover?

1. voluntary 2. involuntary

In 1943, who developed what was known as the theory of human motivation to help explain it?

Abraham Maslow

Who proposed the X-Y theory in his 1960 book called The Human Side of Enterprise?

Douglas McGregor

these were a series of experiments conducted between 1927-1932 by Elton Mayo in the Western Electric Hawthorne Works company in Illinois; used to see how physical and environmental factors of the workplace, such as lighting and break times, would affect employee motivation

Hawthorne Studies

According to what book and author, the cost of losing an employee can range from 25% -200% of that employee's salary?

Keeping the People Who Keep You in Business by Leigh Branham

In 1959, Frederick Herzberg published _________________________, which described his studies to determine which aspects in a work environment caused satisfaction or dissatisfacton.

The Motivation to Work

This theory says managers who have an authoritarian management style; Name the fundamental beliefs:

Theory X managers • The average person dislikes work and will avoid it. • Most people need to be threatened with punishment to work toward company goals. • The average person needs to be directed. • Most workers will avoid responsibility.

True/False - According to Maslow, there is a hierarchy of five needs, and as one level of need is satisfied, it will no longer be a motivator. In other words, people start at the bottom of the hierarchy and work their way up.

True

True/False - An understanding of how your retention plans will impact the payroll budget is important.

True

True/False - As a result, it is our job in HR to provide training opportunities in the area of management, so our managers can help motivate the employees. Training is a large part of the retention plan.

True

True/False - Compensation is not everything. An employee can be well paid and have great benefits but still not be satisfies with the organization.

True

True/False - Fair pay is expected, but it doesn't actually motivate someone to do a better job. Programs to further develop employees ex: management training programs would be considered a motivator.

True

True/False - However, the exit survey data should be reviewed over longer periods of time with several employees, so we can be sure we are not making retention plans based on the feedback of only a few people.

True

True/False - In other words, the hygiene factors are expected and assumed, while they may not necessarily motivate.

True

True/False - One mistake HR professionals and managers make is to assume people leave solely on the basis of their unhappiness with their compensation packages.

True

True/False - The Hawthorne Studies were some of the first research performed that looked at human motivation at work.

True

True/False - The implication of this research applies to HR and managers even today. It tells us that our retention plans must include training and other activities that make the employee feel valued.

True

True/False - There are a number of theories that attempt to describe what makes a satisfied employee versus an unsatisfied employee

True

True/False - There isn't a "one size fits all" approach to retention planning, so the research component is essential to formulate a plan that will make a difference in turnover rates.

True

True/False - With HPWS, the first step in this process is to understand some of the theories on job satisfaction and dissatisfaction. Next, we can gather data as to the satisfaction level of our current employees. Then we can begin to implement specific strategies for employee retention.

True

True/False - With Maslow's hierarchy of needs, implications of his research tell us, for example, that as long as an employee's physiological needs are met, increased pay may not be a motivator. Likewise, employees should be motivated at work by having all needs met.

True

True/False - if organizations use this as the only motivational technique, ignoring physiological rewards such as career growth, this could be a detriment as well. This approach is used as a retention method, usually as part of a compensation plan.

True

Managers who manage under what theory may have a more difficult time retaining workers and may see higher turnover rates

X theory

this gives us a starting point to understanding how management style can impact the retention of employees; theory states there are 2 fundamental approaches to managing people and the two belief systems have a large variance

X-Y theory

What is the first retention strategy needing to be addressed? If done correctly, it will help in recruitment of the right people and retain employees.

a comprehensive compensation plan that includes pay, health benefits, and PTO

this refers to employees deserve to know how their pay rates are being determined. Transparency in the process of how raises are given and then communicating the process can help in your retention planning process.

a pay communication strategy

this issue is directly related to the recruitment process. When a poor match occurs, it can cause frustration for the employee and for the manager. Ensuring the recruitment phase is viable and sound is a first step to making sure the right match between job and skills occurs.

a poor match between the job and the skills of the employee

What is the 3rd step in development of a retention plan?

applying specific retention strategies to include in plans for retention while also keeping budget in mind

within this area, an employee will first try to change the situation that is causing the dissatisfaction; ex: if the employee is unhappy with the management style, he or she might consider asking for a department move

behavior change

What are the 3 behaviors included in the progression of job withdrawal theory?

behavior change physical withdrawal psychological withdrawal

this approach from the carrot and stick theory takes a much more positive approach to employee motivation but still may not be effective; can actually demotivate employees if they do not feel the goal is achievable

carrot

this theory was believed to be coined in the 1700s during the Seven Years' War; combines the approach of "poking and prodding" to get employees to do something and the approach of offering some reward or incentive to motivate employees

carrot and stick

these examples - apply to what approach? • If you increase sales by 10 percent, you will receive a bonus. • If production increases by 15 percent, the entire team will receive an extra day off next month.

carrot approach

A HPWS gets employees involved in ____________________, ____________________, and ___________________ processes that are better for the company and better for the employee, which increases retention.

conceiving, designing, and implementing

What are some of the cost cited due to losing an employee?

customer service disruption loss of morale among other employees burnout of other employees costs of hiring someone new

Hygiene factors were not necessarily motivators, but if not present in the work environments, they would actually cause what?

de-motivation

this includes the cost of leaving, replacement costs, and transition costs

direct turnover costs

What are the two types of costs associated with turnover?

direct turnover costs indirect turnover costs

these needs refer to the need we have to feel good about ourselves

esteem needs

this is an interview performed by HR or a manager that seeks information as to what the employee liked at the organization and what they see should be improved; can provide important retention information; can be a valuable way to gather information about employee satisfaction and can serve as a starting point for determining any retention issues that may exist in the organization.

exit interviews

What are the two ways research can be performed?

exit interviews employee satisfaction surveys

What are examples of needs in the work force needing to be met under Maslow's Hierarchy of Needs?

fair pay safety standards at work opportunities to socialize compliments to help raise our esteem training opportunities to further develop ourselves

this is the name given to a set of systematic HR practices that create an environment where the employee has greater involvement and responsibility for the success of the organization; it is a strategic approach to many of the things we do in HR, including retention

high-performance work systems (HPWS)

Elton Mayo found that no matter which experiments were performed, worker output improved; his conclusion and explanation for this was the simple fact the workers were happy to receive attention from researchers who expressed interest in them; these experiments scheduled to last only one year were extended to five years to increase knowledge base about ____________________________.

human motivation

this includes the loss of production and reduced performance

indirect turnover costs

this refers to many organizations do not have set pay plans, which can result in unfairness when onboarding or offering pay increases. Make sure the process for receiving pay raises is fair and defensible, so as not to appear to be discriminatory. This can be addressed in both your compensation planning process as well as your retention plan.

instituting a standard process

this is when some employees, while they may not feel dissatisfied with their own pay initially, may feel dissatisfaction when comparing their pay with others. pay equity theory may apply here

internal pay equity

this type of turnover is where the employee has not choice in their termination due to, for example, non performance

involuntary turnover

this is a standardized and widely used measure of job satisfaction and a type of employee satisfaction survey; developed in 1969 at Bowling Green State University, it has gone through extensive revisions with the most recent being 2009

job descriptive index (JDI)

this is when employees feel "stuck" in their job and don't see a way to have upward mobility in the organization. Implementing a training plan and developing a clearly defined path to job growth is a way to combat this reason for leaving.

lack of growth

this is when many cite management as their reason for leaving. This can be attributed to over-managing (micromanaging) people, managers not being fair or playing favorites, lack of or poor communication by managers, and unrealistic expectations of managers.

management

Any type of survey can provide information on the employee's satisfaction with their ________________________, ______________________, and other _______________________ and _________________________ issues.

manager; workload; satisfaction & motivational issues

If you want to calculate turnover rates based on region or department what must be gathered?

more specific data

He performed interviews in which employees were asked what pleased and displeased them about their work; from Herzberg's research, he developed the what theory to explain the results.

motivation-hygiene theory

The things that satisfied the employees were ___________________, while the dissatisfiers were the _____________________

motivators; hygiene factors

this is the process of bringing someone "on board" with the company, including discussion and negotiation of compensation

onboarding

this refers to consider implementing a PTO system that is based on the amount of hours an employee works. For example, rather than developing a policy based on hours worked for the company, consider revising the policy so that for every X number of hours worked, PTO is earned. This can create fairness for the salaried employee, especially for those employees who may work more than the required forty hours.

paid time off

Utilizing a _______________________________, in which levels of compensation for jobs are clearly defined, is one way to ensure ____________________ exists within internal pay structures.

pay banding system fairness

This type of turnover is fairly normal:

people moving or family situation changes

this is a formalized process to assess how well an employee does his or her job; effectiveness can contribute to employee retention as employees gain constructive feedback on their job performances and can be an opportunity for the manager to work with the employee to set goals within the organization.

performance appraisal

with this phase, employees will do one of the following: 1. leaves the job 2. takes an internal transfer 3. starts to become absent or tardy

physical withdrawal phase

these are our most basic needs, including food, water, and shelter

physiological needs

What are the hierarchy of needs?

physiological, safety, social, esteem, self-actualization

What are the 5 aspects of job satisfaction measured in a JDI with each facet having 9-18 questions?

present job present pay opportunities for promotion supervision coworkers

this theory on job dissatisfaction was developed by Dan Farrell and James Petersen; it says that people develop a set of behaviors in succession to avoid their work situation

progression of job withdrawal

this is when an employee is unable to leave the job situation; they will become disengaged and may show less job involvement and commitment to the organization, which can create large costs to the organization

psychological withdrawal

What is the 2nd step in the development of a retention plan?

research such as gathering data on the level of satisfaction of our current employees

To avoid turnover costs, what must be developed due to being an important function of the HR strategic plan?

retention plans

this outlines the strategies the organization will use to reduce turnover and address employee motivation

retention plans

Once data have been gathered and analyzed, we can formulate our ________________________________. Our plan should always be tied to the __________________ goals of the organization and the __________________ previously developed, and awareness of motivational theories should be coupled with the plans.

retention plans strategic HPWS

these at work might include feeling safe in the actual physical environment or job security

safety needs

these needs are the needs we have to better ourselves

self-actualization needs

To meet our higher level needs, humans need to experience ___________________. HR professionals and managers can help this process by offering _________________________ within the organization and paying for employees to attend career skill seminars and programs.

self-growth training programs

How do you calculate turnover?

separations during the time period/total number of employees midmonth x 100 = the % of turnover example: 3/115 x100 = 2.6% turnover rate

this is the basic need of wanting to spend time with others

social needs

Many companies use which approach out of the carrot and stick as it takes a punitive look at retention; may motivate for a short period of time, but not in the long term?

stick

these examples - apply to what approach? • If you don't increase your sales by 10 percent, you will be fired. • Everyone will have to take a pay cut if we don't produce 15 percent more than we are currently producing.

stick approach

Our retention plans should be focused on the area of fair salary of course, but if they take the direction of Herzberg's motivational factors, the actual motivators tend to be what?

the work and recognition surrounding the work performed

True/False - replacement of an employee who is paid $8 per hour can range upwards of $4,000

true

Dick's Drive In offers 18,000 in scholarships over 4 years to employees working 20 hrs per week, with a 6 month waiting period, and the employees must continue to work 20 hrs per week; this is training and development plan of what?

tuition reimbursement program

this is losing an employee

turnover

What is the 1st step to developing a retention plan is what?

understanding some of the theories surrounding job satisfaction

this type of turnover is initiated by the employee for many different reasons; can be somewhat predicted and addressed in HR

voluntary turnover

this is when some employees feel their workloads are too heavy, resulting in employees being spread thin and lacking satisfaction from their jobs, and possibly, lack of work-life balance as a result.

workload

Name the fundamental beliefs of managers of Theory Y:

• Most people want to make an effort at work. • People will apply self-control and self-direction in pursuit of company objectives. • Commitment to objectives is a function of expected rewards received. • People usually accept and actually welcome responsibility. • Most workers will use imagination and ingenuity in solving company problems.

What are some examples of turnover costs?

• Recruitment of replacements • Administrative hiring costs • Lost productivity associated with the time between the loss of the employee and hiring of replacement • Lost productivity due to a new employee learning the job • Lost productivity associated with coworkers helping the new employee • Costs of training • Costs associated with the employee's lack of motivation prior to leaving • Sometimes, the costs of trade secrets and proprietary information shared by the employee who leaves • Public relations costs