Hospitality Human Resources

1
HospitalityHuman Resources

• Chapter 13
• Turnover, Discipline, and Exits

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What Youll Learn

• Turnover Issues, Rates, and Costs
• Causes of Turnover
• Methods of Reducing Turnover
• Approaches to Employee Discipline
• Appeals Process in Discipline
• Properly Discharging Employees
• Exit Interviews

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The Turnover Problem

• Turnover
• The cycle of replacing employees
• Can be voluntary or involuntary desirable or
  undesirable
• Causes high costs, lower productivity guest
  satisfaction, unstable organizations,
  inefficiency
• Reasons for high turnover in hospitality
• Growing baby boomers
• Temporary/Transient workforce
• Calculating Turnover
• Calculations vary seasonal, part-timers may or
  may not be included in calculations
• 2 Methodswith or without desirable terminations

Just the Facts...
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Costs Causes

• Cost of Employee Turnover
• Range from 3000 to 10,000 per hourly employee
  management50,000
• Tangible costs direct (uniforms, advertising)
• Intangible costs indirect (lost productivity,
  overtime)
• Separation costs separation pay, exit
  interviews, term benefits
• Replacement costs recruitment, screening,
  interviews, etc
• Training costs orientation, orientation kits,
  materials, salary
• Causes of Employee Turnover
• Low compensation
• Faulty or Inadequate hiring practices
• Poor management weak morale

Unmet Expectations
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Remedies

• Short Term
• Surface Culture
• Find out why they leave/stay
• Ask what they want
• Give em a voice
• Avoid Management Bias
• Good recruiting programs
• Orientation programs
• Take hiring process seriously
• Take management turnover seriously

• Long Term
• Socialization programs
• Develop training programs in additional languages
• Career pathing
• Partner/Profit Sharing
• Incentive programs
• Child care
• Family counseling
• Alternative recruitment
• Evaluate pay scales

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Quick Question

• Which of the following costs is NOT considered
  when determining the cost of turnover?
• Retention costs
• Separation costs
• Replacement costs
• Training costs

Answer A
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Discipline

• Avoid the need for discipline
• Establish and communicate clear, concise rules of
  conduct
• Enforce the rules fairly, without discrimination
• Discipline Approaches
• Hot Stove Approach break a ruleexpect to be
  disciplined
• Immediate action, set rules, be consistent,
  impersonal, fair penalties
• Progressive Discipline step-by-step punitive
  approach
• Oral, written, suspension, discharge
• Preventative (Positive) Discipline emphasize
  good behavior
• Reinforcing the goodnot recognizing the bad
• Reminders, not warnings

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Appeals Systems

• Serve two functions
• Gives both sides a voice in how the issue is
  settled
• Provides legal evidence of due process for
  employees
• Appeals Processes
• Hierarchical appeals are made up the chain of
  command usually in writing
• Open Door appeal to any manager
• Peer Review committees of employees managers
  hear any discipline appeals
• Ombudsman ombudsman or mediator investigate
  only a mediator can offer a judgment

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Proper Discharge
Public Policy

• Wrongful Discharge
• 13 of all lawsuits are for Wrongful Discharge
• Civil Rights Act 1991 allows for jury trials
  capped awards
• Awards include back pay, front pay, and punitive
  damages
• Transfers/demotions can be a form of wrongful
  discharge
• DocumentDocumentDocument
• Be Proactive
• Communicate employment practices
• Manage employee performance
• Investigate problemstake action
• Have procedures for in-house whistle-blowing

Employment At Will
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Discharge Interviews

• Discharge interviews are meant to
• Relate the history that has lead to the interview
• Explain why the action is being taken
• Complete the discharge
• Do it Right
• Identify what went wrong during employment
• Give specific reasons supply documentation
• Avoid anger respect the employee
• Explain the need for confidentiality
• Have a witness pay in full at the time of
  discharge
• Explain appeals process

Liability Insurance
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Exit Interviews

• Exit Interviews
• Interviews conducted with employees who leave an
  organization for any reason
• Collect information on why employee is leaving
• Bring closure to leaving a job
• Inform employees of rights and benefits
• Exit Interview Guidelines
• Conduct during the final weekbut not the last
  day
• Ensure confidentiality
• Identify real reasons for leaving
• Schedule follow up if possible
• Third party interviews work best

Walk Them Out!
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Quick Question

• Filing workers comp claims, serving on juries,
  and refusing to commit perjury all fall under the
  category of _________ and cannot legally be the
  basis for discharge
• Judicial Prerogative
• Employee responsibilities to the employer
• Employer responsibilities to the employee
• Public Policy

Answer D
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What You Know

• Why should discharge be the last resort?
• What are causes of disciplinary problems?
• What are the hot-stove approach and progressive
  discipline?
• How does positive discipline compare to
  progressive discipline?
• What is employment at will and why is it no
  longer considered realistic?
• Explain an appropriate exit interview system.