Human Resource Management Presentation

Made By:

Karan Kamboj

LayoffDefinition:Suspension or termination of employment (with

or without notice) bythe employer or management. Layoffs are notcaused by any fault of the employees but byreasons such as lack of work, cash,or material. Permanent layoffis called redundancy.

Reasons of Layoffs

1. This is usually because the company is facingfinancial difficulties.

2. This is a method whereby an investment bankingfirm, who has committed to buying up all theunsubscribed shares during a rights offering, willreduce the time risk involved due to thedifference between entering into the contractand selling the shares. In other words, they arehedging against any losses due to time.

Voluntary Retirement Scheme (VRS)

Definition:Voluntary retirement schemes are

programs offered by employers toprovide retirement benefits to long-term employees before theemployees’ projected retirementdates. Businesses and organizationsoften offer voluntary retirementschemes as a method of workforcereduction and to reduce long-term

costs.

VRS Cont…..Voluntary retirement scheme (VRS) refers to

voluntary retirement scheme,when company faces the problem of surpluslabor, they have to remove the extra workers.This needs to be done to avoid increase in cost.One of the methods used by the companies is themethods used by companies is the VRS scheme.Under this scheme people have put in 20 or morenumber of years of service are given an option toopt for early retirement benefits and some otheramount which is due to them are paid when theyleave the company.

VRS Cont……

• Voluntary retirement programs offer employees an incentive to commit to employment with their employer for a significant number of years. Voluntary retirement programs can also provide employees with an option to retire before the minimum age of a government pension scheme.

• It is an offered to certain employees as an incentive to retire. It usually contains generous benefits and is typically targeted at employees in middle age and/ or those who have been with a company for a considerable amount of time.

Golden Handshake

Definition:Generous bonus offered to

a director, employee,or partner asa severance payment, oran inducement to leave thefirm without making a fussor creating a controversy.See also golden boot.

Golden Handshake Cont….

A stipulation in an employment agreementwhich states that the employer will provide asignificant severance package if the employeeloses their job. A golden handshake is usuallyprovided to top executives for loss ofemployment through layoffs, firing or evenretirement. Payment can be made severalways, such as cash, or stock options.

Golden Handshake Cont….

This can be in the form of cash, equity, andother benefits, and is often accompanied byan accelerated vesting of stock options.According to Investopedia, golden handshakeis similar to, but more generous than a goldenparachute because it not only providesmonetary compensation and/or stock optionsat the termination of employment, it includesthe same severance packages executiveswould get at retirement.

Exit InterviewsIn human resource terms, an exit

interview is a survey that is conductedwith an employee when he or sheleaves the company. The informationfrom each survey is used to providefeedback on why employees areleaving, what they liked about theiremployment and what areas of thecompany need improvement. Exitinterviews are most effective when thedata is compiled and tracked overtime.

How are Exit Interviews conducted?

The exit interview may be conducted through a variety of methods. Some of the methods include: in-person, over the telephone, on paper, and through the Internet such as with Nobscot’s WebExit.

Exit Interview Cont….An exit interview is a survey conducted with an

individual who is separating from an organization orrelationship. Most commonly, this occurs betweenan employee and an organization, a student and aneducational institution, or a member and anassociation. An organization can use the informationgained from an exit interview to assess what shouldbe improved, changed, or remain intact. More so, anorganization can use the results from exit interviewsto reduce employee, student, ormember turnover and increase productivity andengagement, thus reducing the high costs associatedwith turnover.

Exit Interview Cont….

Some examples of the value of conducting exitinterviews include shorteningthe recruiting and hiring process,reducing absenteeism, improving innovation,sustaining performance, and reducingpossible litigation if issues mentioned in theexit interview are addressed. It is importantfor each organization to customize its own exitinterview in order to maintain the highestlevels of survey validity and reliability.

THANK YOU