Forms of Withdrawal Behavior

1
Forms of Withdrawal Behavior
Individual Level Organizational
Voluntary Nonvoluntary Level Taking a
day off Illness Subunit Going to
a wedding Jury Duty absenteeism Stretching a
vacation Sick Child, rates or
illness Personal business mental
health days grey areas Quit Fired
Subunit Resign Laid off
organizational Early Retirement Mandatory
quit rates or retirement hiring
rates Disorganized? Car Trouble
Absenteeism Turnover Tardiness
2
Why be concerned with absenteeism?

• Absenteeism is on the rise
• Cost of Absenteeism is high (example)
• Affect on customer service
• Affect on employee morale and productivity

3
Example of cost of Absenteeism

• Salary (12.46/hour for 8 hours) 99.70
• Benefits 28.12
• Replacement Employee training etc 10.23
• Unabsorbed Burden(rent, lights etc) 67.75
• Lost profit contribution 81.81
• Total cost of absence 287.61

lower level employee, 2007
4
Causes of Absenteeism
Type of Reason 1995 1998 2002 Absence
Illness 45 22 33
NonVol Family Issues/business? 27 26
24 Gray area Personal Needs 13
20 21 Vol. Entitlement 9
10 10 Vol. Stress Related 6
16 12 Vol.
5
Measuring Absenteeism

1. Frequency Measure
2. Severity Measure
3. Attitudinal Measure
4. Medical Measure
5. Blue Monday
6. Worst Day

6
Measuring Absenteeism example
February S M T W R F S
1 2 3 4 5 6 7 8 9 10 11
12 13 14 15 16 17 18 19 20 21 22 23 24
25 26 27 28
March S M T W R F S
1 2 3 4 5 6 7 8 9 10 11
12 13 14 15 16 17 18 19 20 21 22 23 24
25 26 27 28 29 30 31
April S M T W R F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14 15 16 17 18 19
20 21 22 23 24 25 26 27 28 29 30
7
A Model of Employee Attendance

• 3.Personal Characteristics
• Org. Tenure - Family Size
• Age - Personality
• Sex

• 7.Ability to Attend
• - Illness/accidents
• Family Responsibilities
• Transportation Problems
• Travel Distance

2.Job Expectations (Including about
attendance) Recruitment Selection
1.Job Situation -Job Autonomy -Job Level
-Work Group Size -Role Stress -Leader
Style - Co-worker Relations -Flexible
Scheduling
4. Job Attitudes -Job Satisfaction
-Organizational Commitment -Job Involvement
6.Attendance Motivation
8.Employee Attendance
5.Pressures to Attend -Economic/Market
Conditions -HR Practices (Incentives/Controls)
-Work Group Norms/Culture -Profit
Sharing/Employee Ownership
8
How Companies Fight Absenteeism
Percentage of Companies using
Program Programs Effectiveness of Program (1-5
scale)
89
Disciplinary Action Yearly Review Illness
Verification PTO Bank No Fault Personal
recognition Buy Back/Well pay Bonus
3.4
82
2.9
74
3.2
60
3.6
59
2.9
57
2.6
53
3.4
51
3.3
CCH www.cch.coom/press/news/2007
9
A Systematic View of Reducing Absenteeism

• Simplify Absenteeism
• Increase Relevant Attitudes
• Motivation Programs
• Change the Nature of the Control System
• Encourage Physical Health
• Put Someone in Charge

10
Why be interested in Turnover?

• Changing Economic Trends
• Changing Demographic Trends
• 3. Changing Employment Patterns
• 4. Affect on Customer Satisfaction
• 5. Cost of Turnover

11
Cost of T/O Entry level Fortune 500 example
1984 1998 2008
Replacement Acquisition - Direct Hiring
Costs 638 1001 1062 - Other
Hiring Costs 403 632
670 Replacement Training - Pre-assignment
1646 2583 2740 - Learning
Curve 462 725 769
(MCI study new hire can accomplish only
60 as much in first 3 months. Journal of
Accountancy estimates rookie
efficiency equals 1/3 of the cost
of T/O Other Costs - Unabsorbed burden
1481 2324 2466 - Lost Profit
Contribution 843 1323
1404 Total Costs 5473 8588
9,111
2008 is based on entry level salary of 45,555
12
Cost of T/O by Company and Position
Company Position
Cost Automobile Manufacturer HR Manager
133,688 Machine Works Salaried
Machinist 102,376 Hourly Machinist
58,564 Insurance Manager
79,672 Software Project Leader
32,160 Systems Engineer
34,365 Fast-Food Chain Store Manager
20,765 Counter Person
1,204 Source Kepner Tregoe, Bulletin to
Management, 6-17-99, Jan. 1999
13
T/O Rates Among Fortunes 100 Best Cos
Est. T/O cost Reducing T/O 1 Company T/O
Rate per Employee est. savings/year Merck
9 7592 2,765,000 Cerner 14
8000 240,000 Charles Schwab
12 8329 1,512,000 MBNA 15
4800 1,000,000 America Bank Avg. U.S.
Co. 15.6 5000 500,000
Data from Fortunes 100 Best Companies to Work
For, Jan 2001 Est. T/O costs calculated at 20 of
common entry level salary.
14
T/O Rates Vary Considerably ex. Mental Health
HR Assistant Secretary Maintenance
Worker Driver Therapist Cook Case
Manager Teachers Behavior Health Tech. Teachers
Aide Supervisor Clinical Director Accountant HR
Manager Controller Executive Director
66
14
200
27
0
34
40
47
92
16
60
36
100
33
60
0
15
Firms with lowest T/O rates
2008 Rank, Best Company Co. to work for
T/O S.C. Johnson 27 2 Herman
Miller 96 3 Alcon Laboratories 60 3 Cisco
Systems 6 4 So. Ohio Med Ctr 75 4 General
Mills 69 4 SAS Institute 29 5 Mayo
Clinic 59 5
16
Forms of T/O

• Non-voluntary
• Voluntary
• Functional
• Dysfunctional
• Gray Area

17
How do we measure T/O?

1. Separation Rate
2. Instability Rate
3. Wastage Rate
4. Average Length of Service

18
Managing Turnover
Effect of T/O on the Org.
Functional Dysfunctional
Voluntary NonVoluntary
Motivation for the T/O
19
Forms of T/O example of nurses
Turnover 14.6
Voluntary 87
Nonvoluntary 13
Functional 42
Dysfunctional 58 (7.37 of T/O)
20
A Model of Employee Turnover

• 3.Personal Characteristics
• Org. Tenure - Family Size
• Age - Personality
• Sex - Other (experience etc)

• 7.Pressures to Leave
• Perceived job availability
• Low job performance

2.Job Expectations - Realistic Job Previews
1.Job Situation -Job Enrichment -Task
Repetitiveness -Work Group Size -Role
Stress -Leader Style -Co-worker Relations
-Flexible Scheduling
4. Job Attitudes -Job Satisfaction
-Organizational Commitment -Job Involvement
6.Job Search Motivation
8.Employee Turnover
5.Pressures to Stay -Economic/Market
Conditions -HR Practices (Incentives/Controls)
-Union Presence -Profit Sharing/Employee
Ownership
21
Pre-employment predictors of T/O

• Prior T/O behavior
• Time (months) on prior job
• Employee referral
• friends/family in present organization
• overt intent to stay
• Desire for the job

22
Effect of RJPs on T/O
40
Sewing Machine Operators West Point
Cadets Telephone Operators Insurance
Agents Bank Tellers US Marines Nurses
11.1
11.5
6
50
33.8
27
19
35
15
33.1
22.4
21.1
8.5
0 10 20 30 40 50
Turnover Rates
Control Group
RJP Group
23
Job performance and T/O

• Low performers quit more than
• high performers
• Low and high performers quit more than
• average performers.

24
Summary of Strategies for Managing Turnover

• Promote Job Designs that reduce T/O (Box 1)
• Encourage Small Group Sizes (Box 1)
• Reduce Job Stress (Box 1)
• Improve HR skills of Supervisors (Box 1)
• Clarify Job Expectations (Box 2)
• Use pre-employment techniques to hire more
  carefully
• Improve Placement to Emphasize Person-Job Fit
  (Box 3)
• Address non-work causes of turnover (EAPs) (Box
  3)
• Promote Job Satisfaction (Box 4)
• Promote Organizational Job Commitment (Box 4)
• Combat Non-work causes of T/O as
• long as economical (Box 5)

25
Important Issues to Consider Summary

• Need to differentiate between voluntary and
• nonvoluntary turnover.
• Are voluntary leavers leaving for work or
  non-work
• related reasons?
• Need to ascertain who quits.
• What is the impact of T/O on those who remain?
• T/O is not to be eliminated, but managed.

26
Positive and Negative Consequences of T/O
Positive Consequences Negative Consequences
Lose low performers Lose high performers Cost
savings (new hires cheaper) Costly Stimulate
changes in policies Negative PR from
leavers Increased satisfaction among
stayers Decreased satisfaction Increased
internal mobility opportunities Increased
workload Infusion of new knowledge/change Decrea
sed cohesion Decrease in other withdrawal
behavior Disrupted social/comm. patterns
27
Stress
Stress occurs when an individual
cannot adequately respond to job or
organizational stimuli without damage or
excessive wear and tear on their system (fatigue,
worry, heart disease).
28
Reasons for Studying Stress

1. Economic Self-Interest
2. Legal Reasons/Liability/Workers Compensation
3. Moral, Ethical, Humanistic Reasons

29
General Adaptation Syndrome (Hans Selye)
Instrumental Functioning
Resistance
Exhaustion
Alarm
Stress
30
Occupations and Stress
High Stress Low Stress Inner City H.S.
Teacher Farm Laborer (nonowner) Police
Officer Maid Miner Craft Worker Air
Traffic Controller Animal/stock Handler Medical
Intern Heavy Equip. Operator Stockbroker Col
lege Professor Journalist Customer Complaint
Clerk Waitress Secretary
31
Sample of 250 Jobs Rated for Stress

• High Stress Low Stress
• U.S. President 103. Market Researcher
• Fire Fighter 119. Economist
• Senior Executive 122. Mechanical Engineer
• Surgeon 149. Retail Sales Person
• Air Traffic Controller 173. Computer Programmer
• PR Executive 193. Purchasing Agent
• 20. Stockbroker 245. Actuary

32
Common Factors for High Stress Jobs

• Little control over work
• Major responsibility for human/financial
  resources
• Unpleasant working conditions
• Repeated exchanges with others
• Unstructured as opposed to structured tasks

33
Types of Role Stress
Role Conflict Intrasender Conflict Intersender
Conflict Interrole Conflict Person Role Conflict
Role Ambiguity Role Overload Quantitative
Overload Qualitative Overload Role
Underutilization Resource Inadequacy
34
Type A and Type B Personalities
Type A Type B
Excessive competitiveness Feels no need to
display or Tries to stretch abilities, even in
discuss achievements social
situations Impatient Patient Sense of time
urgency Unhurried in work or manner Invests
long hours on the job Can relax without
guilt Tries to do several things at once More
reflective Seldom expresses feelings of
anxiety Exhibits concern for broad Seldom
afflicted with minor illnesses ramifications
of decisions If exercise at all, plays 36 holes
of Plays for fun and relaxation, golf takes
a stop watch jogging not just to win
35
Stress and Performance
Traditional View Current View
Performance
Distress Eustress Distress
Stress Stress
Source adapted from Quick Quick,
Organizational Stress and Preventative
Management (New York McGraw-Hill, 1984,
P. 7 12)
36
Approaches to Stress Management

1. Dissipation
2. Selection and Training
3. Training
4. Job Design

37
Health/Life Style Programs
Carrot vs Stick approaches
HyVee reduction in health insurance for
nonsmokers GuideOne reductions in health
insurance for nonsmokers and drinkers and extra
coverage for those who volunteer and have
regular church attendance Gannett, General
Mills, NW Airlines monthly surcharge for smokers
not attending cessation programs U-Haul
International Biweekly health insurance
surcharge for tobacco use or excessive weight
38
Current Wave Smokers
Smoking on decline in US, but still 23 of
Iowans smoke Center for Disease Control estimates
smoking costs the nation 167 billion. Federal
studies show smokers cost businesses an average
of 5606 more per year due to increased medical
and absences Over a lifetime, employees who smoke
incur 16,000 more in medical bills.
39
Next wave Obesity
1 in 3 adults is obese (BMI gt30) Obesity costs
the nation 100 billion. Obesity accounts for
5-7 of health care costs For a co. of 1000
employees, an extra 395,000. Programs to combat
obesity are on the rise. (Google, Caterpillar
putting healthier food in vending, charging
less for healthier food in cafeterias) Alabama
charges 25/mo more for insurance if obese
(BMIgt35)
Source Conference Board, 2008