HROB 2100 Lecture Notes - Lecture 9: Procedural Justice, Severance Package, Wrongful Dismissal

• School: University of Guelph
• Department: Human Resources and Organizational Behaviour
• Course: HROB 2100
• Professor: Tom Medcof

Document Summary

The time, money and resources invested in recruiting, training, and maintaining employees is lost when employees exit a firm. Turnover refers to the termination of an individual"s employment with an organization. Voluntary turnover is employee initiated, usually in the form of quits, retirement or resignation. Involuntary turnover is employer initiated and is usually in the form of dismissals or layoffs. The personality characteristics of employees who get laid off in relation to those who quit are opposite. Ex: higher education reduces the likelihood of getting laid off but increases the probability that they will quit. Direct costs of turnover: cost of advertising and interviewing, cost of moving expenses offered to the new candidate. Indirect costs of turnover: lost productivity during the employment gap, training curve productivity losses. 4 main components associated with cost of the turnover: Separation costs-cost of exit interviews, administrative functions associated with the turnover, and separation or severance pay.