Professional Documents
Culture Documents
ELE TA Finals Notes
ELE TA Finals Notes
Turnover
Ex: What differentiates banks from one another?
➔ The rate at which the employees leave the workforce and
The quality of service that the employees provide; Their
are replaced
acquired talent.
➔ Measurement of the number of employees who leave an
organization during a specified time period, typically one
year. While an organization usually measures the total Causes of Turnover
number of employees who leave, turnover can also apply Employees value:
to subcategories within an organization like individual 1. Lack of opportunity for growth or career development
departments or demographic groups. ➔ We want to make sure there is room for us to
develop and grow
2. Natural Career Progression
(Check recording)
➔ When employees reach the pinnacle of their career;
it’s like retirement’ you’ve attained the position
Demographics have changed; The way of thinking has
you’ve reached
changed.
3. Internal Promotion or Transfer
➔ Once you promote someone, that slot becomes
Before, employees tend to think that their first job is their last
vacant therefore you need new people to fill that
job
slot; there will be vacancies or gaps being left by
that person moving
In today’s day and age, that’s not how employees think
4. Feeling overworked/burnout
anymore.
➔ Ensure employees are engaged well enough and
are not at risk of overworking
Millennials and Gen Z tend to transfer from organization to
5. Negative feelings
organization. It is not necessarily a good or bad thing.
➔ Unavoidable in any organization; We need to
empower the management to get to know the staff
From the organization perspective, it’s hard to retain
and avoid situations that can lead to negative
employees because they leave naturally
feelings
6. Toxic work environment
From the employee perspective, given their voluntary nature
Ensure that you are fostering and developing a proper
they value their work and professional careers
work environment
7. Family or life event
Why is turnover important?
➔ Most employees will value their family or their own
development; If it means they have to leave because
of these events
8. Competitive offer ➔ Recruiting, selecting, and training replacements
➔ Some organizations may offer something more ➔ Lost productivity
competitive that will lead to turnover; We need to ➔ Loss of Acquired Talent
ensure our organization is at par with what our
competitors are offering What happens when we lose talent?
9. Lack of work-life balance
If we lose our talent, we will start from square one again in
➔ Not every employees is the same (Check recording)
the talent supply chain. It entails cost and time and greatly
10. Involuntary departure
affects the organization. It is important in the TA standpoint
that we ensure the talent we acquire. Because TA does not end
Question
in selection, you have to ensure that they stay and retain in the
Is Employee Turnover Voluntary or Involuntary?
organization.
➔ It is both voluntary and involuntary
Perspective #1: Ensure talent stays
Voluntary and Involuntary Turnover
Perspective #2: Ensure we have a plan just in case the talent
Voluntary Turnover
leaves the organization
➔ Turnover initiated by employees
➔ Often when the organization would prefer to keep them
Involuntary Turnover Employee Separation
➔ Turnover initiated by an employer ➔ Turnover is associated with the departure/separation of
➔ Often with employees who would prefer to stay employees with the organization.
➔ Compared to turnover, separation is only associated with
the employee’s departure. Turnover looks to “fill the gap”
Examples of Involuntary Turnover:
- Retrenchment - reduction of cost
- Employee goes against rules and regulations; policy and Separation - Looks at employee leaving
procedures Turnover - Looks at how we fill the gap once that employee
leaves
When it comes to turnover whether voluntary or involuntary,
cost is included In Talent Acquisition, what should be our priority?
Addressing Turnover or Addressing Separation?
Involuntary turnover Costs
➔ Recruiting, selecting, and training replacements We should not belittle separation but from a TA standpoint, we
➔ Lost productivity need to ensure that we acquire and retain the right talent in
➔ Lawsuits the organization. That is why we need to address turnover.
➔ Workplace violence
Separation
Voluntary turnover Costs
➔ Employee Retention is the ability of the Organization to
Voluntary Separation Involuntary Separation
➔ Voluntary retirement ➔ Dismissal retain its employees, often presented as a statistic
➔ Resignation ➔ Termination (Retention Rate)
➔ Transfer by request ➔ Suspension ➔ Employee job satisfaction and engagement factors are key
➔ Retrenchment ingredients of employee retention.
➔ Retirement
HR Programs in Place to Address Turnover
3 Causes of Preventable Separation and Turnover ➔ Mentoring Programs
1. Financial Stress/Wellness ➔ Long-Term Incentives
2. Stagnancy ➔ Engagement Surveys
3. Dissatisfaction with Job Parameters ➔ Others
Coaching is an aspect of performance management that uses Disciplining an Employee with Outcome Fairness
positive discipline
Even during employment, HR can remind employees of the Serious Offense Suspension
policies through emails.
Investigative Suspension
Talent Acquisition
Other ways to help justify an increase in salary:
➔ In order for us to maximize Talent Acquisition, we need to
- Pursuing higher education
ensure the compensation and benefits of our potential
- Additional trainings and certifications
and current talents are up to par
Bottomline
Clear that there is a specific system in place when it comes to performance should be good to be eligible for promotion. Also,
pay grades and structure. how long it would take.
Computing Overtime
On Ordinary Days
➔ Number of hours in excess of 8 hours (125% x hourly rate)
On a Rest Day, Special Day, or Regular Day
➔ Number of hours in excess of 8 hours (130% x hourly rate)
On a Night Shift
➔ Ordinary Day (110% x basic hourly rate)
If we know our employee’s ambitions through managers or ➔ Rest Day, Special Day or Regular Holiday (110% x overtime
supervisors, from there you can plot out their future hourly rate)
development plans. You help them create their plans. So that
how many times that person should be promoted and Computing 13th Month Pay
➔ Total basic salary earned for the year exclusive of overtime, ➔ Provision of holiday pay
holiday, and night shift differential pay divided by 12 = ➔ Paternity and maternity leave benefits
13thmonth pay
Examples:
Conditions of Employment and Benefits provided for
Employee
Employment Conditions
➔ Normal working hours shall not exceed eight (8) hours a
day
➔ Payment of overtime work shall consist of an addition of at
least 25% of the regular wage per hour worked or 30%
thereof during holidays or rest days
➔ Minimum wage rates for Agricultural and Non-Agricultural
lines of work vary in every region and should be properly
observed
➔ Minimum age of employment is 18 years old but those
aged 15 to 18 can be employed given that they work in
non-hazardous environments
➔ In the event of a bankruptcy or liquidation, workers shall The “Recruitment Incident”
be paid their full salary before other creditors may ➔ A Fresh Graduate turned down a position as she/he
establish any claim to a share in the employer’s assets expressed that they need 60k a month for a livable wage.
➔ What can you say about this situation?
Mandatory Benefits and Contributions
➔ Companies are mandated by the Labor Code to give their Defer judgment. Both sides have valid points and arguments.
regular employees a thirteenth month pay equivalent to At the end of the day, was it handled properly? No, the whole
one (1) month of their annual salary situation was handled poorly.
➔ Service incentive leave of at least 5 days with pay for every
year of service It should not have been posted online. Effects of data privacy
➔ Employees have a right to a weekly rest period of not less and the company’s reputation.
than 24 consecutive hours after every 6 consecutive
normal work days We need to go about things professionally, especially when it
➔ Withholding a portion of an employee’s monthly salary to comes to compensation and benefits. These are one of the
remit as contributions to government agencies is a most personal things that people tend to forget. These dictate
requisite for employers, these agencies are as follows: how someone will be able to live their lives with their jobs.
◆ Social Security System (SSS)
◆ Home Development Mutual Fund (HDMF)
◆ Philhealth
Social Media is not a diary. Some professionals tend to forget It shows who we are as an organization, in terms of talent
that. Freedom of speech does not necessarily mean you are acquisition.
free from the consequences that come after.
Wage and Compensation Benefits
The whole situation boils down to ethics and professionalism.
➔ Minimum Wage
➔ Overtime Pay
In the world of talent acquisition, how do we view potential
➔ Premium Pay
candidates and our employees in the organization?
➔ Night Shift Differential
➔ 13th Month Pay
Most Reactions ➔ Separation Pay
➔ “Why is the starting salary so low?” ➔ Retirement Pay
➔ “That’s only slightly above minimum wage, that’s
ridiculous!”
Required wage based compensation and benefits.
➔ “What a rip off, this organization obviously doesn’t value
new talent”
Leave Benefits
1. Service Incentive Leave - Sick Leaves or Vacation Leaves
As HR, we should empathize with others. We then explain why.
➔ Mandate: 1 year tenure are entitled to leaves
2. Parental Leaves - Maternity/Paternity/Solo Parent Leaves
What they don’t realize 3. Special Leave Benefits for Women - Magna Carta or
➔ Opportunities to earn more along with earning more work Victims of Violence
experience 4. Bereavement Leave - 3 days additional time of to mourn
➔ Salary might be “low”, but BENEFITS cover more that the the death of a family member
salary 5. De minimis Benefits
➔ The organization evolves with the industry and industry
standards. (3) Required Benefits in the Philippines
➔ The Philippine Social Security System, strengthened by
Talent Acquisition the provisions of the Republic Act No. 8282 or the Social
➔ Determining Salary must be just for the organization. Security Law, is the country’s social insurance program
➔ We value our talents, both potential and current. They and consists of the following bodies:
need to be properly compensated. ◆ Social Security System (SSS) – The SSS was created
➔ How we present ourselves during the Talent Supply chain to provide private employees and their families
reflects the organization as a whole as well. protection against disability, sickness, old age, and
➔ Talent Supply Chain: Source, Recruit, Select, Retain death. The Government Service Insurance System
(GSIS) is the equivalent system for Philippine
government employees.
◆ Home Development Mutual Fund (HDMF) – The
HDMF, also known as the PagIBIG Fund, is a
provident savings system supplying housing loans
to private and Philippine government employees,
and to self-employed persons who elect to join the
Fund.
◆ Philippine Health Insurance Corporation
(PhilHealth) – PhilHealth is administered by the
Philippine Health Insurance Corporation, and
provides employees with a practical means of
paying for adequate medical care in the Philippines.
Talent Acquisition
➔ Determining Benefits must be just for the organization,
not omitting any mandatory benefits.
➔ We value our talents, both potential and current. They
need to be properly compensated.
➔ How we present ourselves during the Talent Supply chain