Quintos, Paul Emmauel

BSMA 3102

Module #5:Retention and Motivation

Lesson 1: The Cost of Turnover

 2 Types of Turnover
1. Voluntary turnover - the type of turnover that is initiated by the employee
for many different reasons.
2. Involuntary turnover - initiated by the organization for various reasons
such as nonperformance.

 Direct turnover costs include the cost of leaving, replacement costs, and

transition costs
 Indirect turnover costs include the loss of production and reduced performance.

 The following are some examples of turnover costs:

 Recruitment of replacement
 Administrative hiring costs
 Lost productivity associated with the time between the loss of the employee
and hiring o 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 leave
 Public relations costs

 Reasons for Voluntary Turnover

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

 Retaining employees is an important component to a healthy organization. Losing

an employee is called turnover. Turnover can be very expensive to an
organization, which is why it is important to develop retention plans to manage
turnover.

 Direct turnover costs and indirect turnover costs can include the costs associated
with employee replacement, declining employee morale, or lost customers.

LESSON 2: Retention Plans

 Effective high-performance work systems (HPWS) 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. A
 high-performance work system is a strategic approach to many of the things we
do in HR, including retention.

 Maslow’s Hierarchy of Needs

 Self-actualization needs - the needs we have to better ourselves.
 Esteem needs - refer to the need we have to feel good about ourselves.
 Social needs - we have the basic need to spend time with others.
 Safety needs - might include feeling safe in the actual physical environment,
or job security.
 Physiological needs - are our most basic needs, including food, water, and
shelter.

 Herzberg Two-Factor Theory - which described his studies to determine which

aspects in a work environment caused satisfaction or dissatisfaction.
 Top six motivation factors:
1. Achievement
2. Recognition
3. The work itself
4. Responsibility
5. Advancement
6. Growth

 Top six Hygiene Factors:

1. Company policies
2. Supervision
3. Relationship with manager
4. Work conditions
5. Salary
6. Relationship with peers

 McGregor’s theory on motivation looked at managers’ attitudes toward

employees. He found that theory X managers had more of a negative view of
employees, while theory Y managers had a more positive view. Providing
training to the managers in our organization can be a key retention strategy based
on McGregor’s theory.

 The carrot-and-stick approach means you can get someone to do something by

prodding or by offering some incentive to motivate them to do the work. This
theory implies these are the only two methods to motivate, which of course, we
know isn’t true. The implication of this in our retention plan is such that we must
utilize a variety of methods to retain employees.

LESSON 3: Implementing Retention Strategies

 Salaries and Benefits

1. Instituting a standard process. 
2. A pay communication strategy.
3. Paid time off. 
 Training and Development
 To meet our higher level needs, humans need to experience self-growth. HR
professionals and managers can help this process by offering training
programs within the organization and paying for employees to attend career
skill seminars and programs.
 Performance Appraisals
 The performance appraisal is a formalized process to assess how well an
employee does his or her job.
 Succession Planning
 Identify high-potential employees capable of advancing to positions of higher
responsibility.
 Ensure the development of these individuals to help them be “ready” to earn
a promotion into a new position.
 Ensure diversity in the talent bench by creating a formal succession planning
process.
 Conflict Management and Fairness
1. Consistency. The employee will determine if the procedures are applied
consistently to
other persons and throughout periods of time.
2. Bias suppression. The employee perceives the person making the decision
does not have
bias or vested interest in the outcome.
3. Information accuracy. The decision made is based on correct information.
4. Correctability. The decision is able to be appealed and mistakes in the
decision process
can be corrected.
5. Representativeness. The employee feels the concerns of all stakeholders
involved have
been taken into account.
6. Ethicality. The decision is in line with moral societal standards.
MODULE #6: Training & Development
Lesson 1: Steps to Take in Training an Employee

 Employee Orientation is the process used for welcoming a new employee into the
organization.
 Goals of an orientation are as follows:
1. To reduce start-up costs. 
2. To reduce anxiety.
3. To reduce employee turnover. 
4. To save time for the supervisor and coworkers.
5. To set expectations and attitudes.

 In-house training programs are learning opportunities developed by the

organization in which they are used. This is usually the second step in the training
process and often is ongoing.
 Examples of in-house training
1. Ethics training
2. Sexual harassment training
3. Multicultural training
4. Communication training
5. Management training
6. Customer service training
7. Operation of special equipment
8. Training to do the job itself
9. Basic skills training

 Mentoring - a mentorship program can help ensure the new employee not only
feels welcomed but is paired up with someone who already knows the ropes and
can help guide the new employee through any on-the-job challenges.

 External training includes any type of training that is not performed in-house.

This is usually the last step in training, and it can be ongoing. It can include
sending an employee to a seminar to help further develop leadership skills or
helping pay tuition for an employee who wants to take a marketing class.

Lesson 2: Types of Training

 Technical training is a type of training meant to teach the new employee the
technological aspects of the job.

 Quality Training refers to familiarizing employees with the means of preventing,

detecting, and eliminating nonquality items, usually in an organization that
produces a product.

 Skills training, the third type of training, includes proficiencies needed to actually
perform the job.

 Our fourth type of training is called soft skills training. Soft skills refer to

personality traits, social graces, communication, and personal habits that are used
 to characterize relationships with other people. Soft skills might include how to
answer the phone or how to be friendly and welcoming to customers.

 Professional training must be done on an ongoing basis. Professional training is a

type of training required to be up to date in one’s own professional field. For
example, tax laws change often, and as a result, an accountant for H&R
Block must receive yearly professional training on new tax codes.

 Team training is to develop cohesiveness among team members, allowing them to

get to know each other and facilitate relationship building.

 Safety training is a type of training that occurs to ensure employees are protected
from injuries caused by work-related accidents.

Lesson 3: Training Delivery Methods

 Training delivery methods are important to consider, depending on the type of

training that needs to be performed.
 On-the-job coaching delivery method is a training delivery method in which an
employee is assigned to a more experienced employee or manager to learn the
skills needed for thejob. This is similar to the mentor training delivery method,
except a mentor training method is less about skills training and more about
ongoing employee development.
 Brown bag lunch training delivery is normally informal and can involve personal
development as well as specific job-related skills.
 Web-based training is any type of training that is delivered using technology.
 A synchronous training method is used for web-based training and refers to
delivery that is led by a facilitator. An asynchronous training method is one that is
self-directed.
 Job shadowing is a delivery method consisting of on-the-job training and the
employee’s learning skills by watching someone more experienced.
 Vestibule training delivery is also known as “near site” training. It normally
happens in a classroom, conference room, or lecture room and works well to
deliver orientations and some skills-based training. Many organizations also use
vestibule training for technical training, safety training, professional training, and
quality training.

Lesson 4: Designing a Training Program

 The first consideration is the delivery mode; depending on the type of training
and other factors, some modes might be better than others.
 Budget is a consideration in developing training. The cost of materials, but also
the cost of time, should be considered.
 The delivery style must take into account people’s individual learning styles. The
amount of lecture, discussion, role plays, and activities are considered part of
delivery style.