BUS FPX 3040 Assessment 3 Retention and Separation

BUS FPX 3040 Assessment 3 Retention and Separation

Student Name

Capella University

BUS-FPX3040 Fundamentals of Human Resource Management

Prof. Name:

Date

Memorandum

To: Agency Directors
From: MarShetia Baldwin, HR Director
RE: Retention and Separation Updates

Introduction

Retaining employees for extended periods is crucial for an organization’s immediate and long-term success. Keeping the best talent ensures customer satisfaction, fosters high employee morale, and cultivates a robust organizational culture. High turnover rates can be costly, as they often lead to employee disengagement and attrition. This memorandum explores the retention, separation, and succession strategies employed by the Alabama Medicaid Agency.

Best Practices in Employee Engagement

Providing promising employees with clear career pathways demonstrates that they need not seek external opportunities for growth. These individuals have already invested time in the organization, understand the business model, and can be effectively transitioned into leadership roles. Succession planning fosters organizational stability, enhances customer satisfaction, boosts sales growth, and mitigates the high costs associated with turnover and retraining. Another initiative by the Alabama Medicaid Agency to support its high-performing staff is the mentorship program, where executive leaders act as mentors. They guide employees through an overview of the organization, enhancing the mentors’ knowledge and leadership skills. A comprehensive succession planning program is integral to retaining top talent. Employee engagement best practices are essential for ensuring that the organization operates efficiently and profitably.

While some organizations may focus on specific HR areas like leadership development or company culture, others adopt a broader HR strategy centered on overall employee engagement. This approach simplifies improvements across various HR domains, as they are interconnected. Strategies to enhance employee engagement include fostering a strong connection to the organization’s mission, promoting flexibility, embracing diversity, prioritizing the development of all employees, offering benefits aligned with company values, cultivating an open and honest culture, leading by example, hiring engaged employees, and recognizing that employee engagement and satisfaction are distinct concepts. Giving two weeks’ notice is a sign of respect from an employee, allowing the organization adequate time to find a replacement (Finnegan, 2009).

Employee Separation and Turnover

Employee separation can be initiated by either the employer or the employee. In many states, employers adhere to the “at-will” law, which permits termination at any time, provided it does not violate EEOC and Civil Rights Title VII regulations. There are two types of employment separation: involuntary and voluntary. Involuntary separation occurs when an employee cannot fulfill job responsibilities due to misconduct, attendance issues, or poor performance. In contrast, voluntary separation happens when an employee chooses to leave the organization on their own terms. It is essential for employees to provide at least two weeks’ notice prior to their departure. The employee handbook should include statements that employment is at-will and that the employer retains the right to modify terms and conditions at any time. Well-structured handbooks effectively communicate policies, procedures, and guidelines to employees.

Poorly drafted handbooks can lead to legal disputes. To maintain their “at-will” employer status, organizations must ensure their policies are compliant with state and federal regulations. It is vital for the employer’s handbook to be reviewed by legal counsel to address all policies and prevent future negative repercussions. Handbooks must cover legally required policies regarding unlawful harassment, federally mandated leaves (such as the Family and Medical Leave Act), health standards, working hours, benefits eligibility, employment status, disciplinary actions, working conditions, and employee separation. Although some policies may be perceived negatively by employees, they serve to protect employers from litigation and disciplinary issues. Many unemployment hearings favor terminated employees due to employers’ failure to produce a copy of their handbook or retain a signed employee acknowledgment form.

Retention Strategies

Employers must establish disciplinary policies to govern employee conduct. Disciplinary action policies should address violations of organizational policies, serious misconduct, consistently poor performance, or absenteeism and tardiness. Regarding formal discipline, employers reserve the right to direct employee work and manage organizational operations, provided they comply with applicable laws, regulations, and contractual agreements. While many employers implement employee relations programs to enhance relationships with their workforce and avoid the need for disciplinary actions, such measures may not always succeed, making disciplinary actions sometimes necessary. The Alabama Medicaid Agency’s disciplinary policy outlines five stages of corrective action: counseling, a verbal warning, a written warning, a final written warning, and termination.

This structured approach to discipline should be followed by all organizations. A fundamental principle is that companies must develop a disciplinary process to address disciplinary issues consistently and in compliance with employment laws and regulations. Every employee and manager should be held accountable for adhering to the same standards and policies. Failure to hold every employee or manager accountable can lead to legal issues, as it may be viewed as discrimination. For example, if an employee in a protected class is disciplined for the same infraction that another employee outside of that class committed without consequences, the protected class employee may sue for discrimination based on race, gender, or religion.

Conclusion

Employee engagement relates to the extent of an employee’s commitment and involvement with an organization. It has emerged as a key driver of business success in today’s competitive marketplace. High levels of engagement promote talent retention, foster customer loyalty, and enhance organizational performance and stakeholder value. Most leaders understand that employee engagement directly impacts an organization’s financial health and productivity. According to Gallup (2017), only 33% of American workers feel engaged in their jobs, while 52% indicate they are merely “showing up,” and 17% describe themselves as “actively disengaged.” This indicates that many organizations have significant work to do to unlock the full potential of their workforce. Factors influencing engagement and productivity include social cohesion, support from management, information sharing, shared goals and vision, communication, and trust. Employees need to feel valued and respected; they must know that their contributions are meaningful and that their ideas are heard. Highly engaged employees are more productive and committed to their organizations. To enhance employee engagement levels, employers should carefully consider the design of engagement initiatives.

Table of Retention Strategies

References

Finnegan, R. P. (2009). Rethinking retention in good times and bad: Strategies and tactics for keeping your best people. Boston, MA: Nicholas Brealey. Retrieved from https://books.google.com/books/about/Rethinking_Retention_in_Good_Times_and_B.html?id=HqfKBgAAQBAJ&printsec=frontcover&source=kp_read_button#v=onepage&q&f=false.

Gallup, Inc. (2017). State of the American Workplace. Retrieved from https://news.gallup.com/reports/199961/7.aspx

BUS FPX 3040 Assessment 3 Retention and Separation

Sheed, M., & Bogardus, A. (2012). PHR/SPHR Professional in Human Resources Certification Study Guide (4th ed.). Indianapolis, Indiana: John Wiley & Sons, Inc.

U.S. Equal Employment Opportunity Commission. (n.d.). Alternative Dispute Resolution (ADR). Retrieved from https://www.eeoc.gov/federal/fed_employees/adr.cfm.