Managing the Workforce Flow

(0:00-0:19)

Hello friends.

Now, we will talk about “managing the workforce flow”.

This is quite an important aspect of any business, because any organization is incomplete without its people, and when it comes to promoting people or designing their career path, or when it comes to giving them assignments, only these things come in handy.

When the business diversifies and we need new people, how can we use those people within the organization? Then, when an untoward incident happens, when the organization has to be downsized or permanently shut down, then how to do the separation of the people, or how to retain the people at the time of mergers and acquisitions so that they can support us in the new organization as well.

Now, let’s have a look at the fundamentals.

The main purpose of strategic staffing is to bring new people into an organization, retain them, and if they wish to leave the organization, then plan a respectful exit for them.

As I said, it is very important for an organization to manage the movement of people, plan their development, and give them additional responsibilities. We will get an in-depth insight into these parameters in our upcoming modules. Okay.

But it is very important to understand why people are leaving our organization. Also, if there is a forceful separation such as a termination, layoffs, or downsizing of the organization, in such times too, managing those separations, is equally important.

Now, generally, we always talk about how the low turnover rate in any organization is good but is it always an ideal scenario?

Some people will say that yes, having low turnover is a good thing, some people will say that having high turnover has a negative effect on the organization.

The turnover that we are talking about here is the employees who leave the organization, we call that a turnover as well. So, if you see, then each time a low turnover is not the optimal turnover.

Sometimes an optimum turnover depends on the business strategy, productivity, and how the business is improving. Okay.

Now, sometimes it seems that having a low turnover is also a good thing, but if the organization is going through a rough patch, and people are automatically moving to new organizations, that is leaving your organization and moving to a new organization, well, that is also an optimal turnover because you do not have to forcefully separate people. (Got it?)

So, basically, if we talk about an optimal turnover, then we also have to see its financial aspect, what is its impact on the finances of the overall business, and how much is the cost of each type of turnover.

Sometimes it happens that the key talent that we have, if they leave our organization, then their cost will be the major cost of the whole organization. It’s not just about their salary but also about finding an individual of the same caliber, training him, accustoming him to the organization, and then expecting deliverables from him. (Right?)

Therefore, whenever we talk about a turnover, when we match the financial gains and costs of different types of turnover, we get to know how many people are needed in the organization and how many people should leave the organization.

Now, suppose you handle a manufacturing company, and there is a fierce demand for your product in the market to an extent that you have to work multiple shifts also. Well, the staff of your existing single shift will not be able to support you in 3 shifts. Right?

At such times, you have to hire additional people. But suppose when you have a 3-shift operation and if the demand for your product decreases in the market, then you will have to let go of some people out of the organization. Why? Because you will start downsizing gradually over a period of time until you bring a new product to the market and it has the same demand as your previous product. (Agreed?)

So overall, when we see, then a turnover is equally important as bringing people within the organization.

So now we will see what are the different types of turnovers?

But, before that, this is a very interesting quote that says, “Zero turnover is not a viable goal. Some turnover is healthy; it allows for fresh ideas and new people to come in and shake up an organization”.

You must have seen that there are many such organizations that promote their own people at their key positions internally. But is this the right strategy? (Think about it)

Generally, if we see a person who has gone to a key position, he or she might obviously know a lot about the organization. But there is also a drawback associated with it. The entire organization becomes inward-looking. Wonder why? Well, because they are not getting any fresh ideas from outside. (Right?)

Now, just imagine, if the same organization brings thoughts, ideas, and new ways of working from outside also and maintains a perfect balance between internally hired people and externally hired people, then that organization definitely reaches the peaks. (Agreed?)

Because when we get accustomed to working in a particular way, then at times it also happens that our overall productivity starts decreasing gradually. But if someone comes from the outside and pumps in fresh ideas and fresh thoughts within the organization, then suddenly you will see that people will start to change slowly. Okay.

The way new energy flows, in the same way, a new thought flow will start in the overall organization, and people will start thinking and start operating in a very different manner.

Have you ever seen that when the key leadership changes in any organization, the working style of the whole organization changes? Why does that happen? Because if we get fresh ideas from outside, people get a new way of working. While, on the other hand, if someone gets promoted internally and goes to that position, then major changes are not seen, the only changes come at a leadership level. (Got it?)

So, when you see an organization with zero turnovers, the organization becomes stagnant. Whereas, if continuous churning occurs, then the new flow of ideas comes into the organization and they have the capability to take the firm to the next level. Okay….

Now, let’s talk about the “types of turnover”.

The foremost type of turnover is “voluntary turnover”.

Now, what happens in “voluntary turnover” is the “employee chooses to leave on its own due to any personal or professional reasons”.

So, what are its methods and how will you know that any employee has slowly started getting detached from the organization.

Well, the first one is “Written resignation”.

If the employee has resigned, then you will come to know that post the notice period, you cannot keep him in the organization. Then there are some subtle hints that the person is not reporting to work as assigned. Or you have given a leave to that employee, and he does not want to come back after that leave. So, these are some implied hints that the person wants to leave the organization. (Understood?)

Now, what could be the reasons for this? First of all, "career growth". That individual is not getting adequate growth, which everyone expects to continue to grow at a personal or professional level where he or she is working. Hence, if there is no career growth, then the employee gets dissatisfied.

Then the main cause of dissatisfaction can be career growth. Apart from this, there can be numerous other reasons for dissatisfaction such as the working environment, policies and procedures, some new changes that you have introduced within the organization etcetera. Because there might be some policies by which organization-wise dissatisfaction is created.

Now to say, they have been made progressive or for the benefit of the organization. Right? But if most of the employees are dissatisfied with it, then what is the use of such policies? Because ultimately it will impact the motivation level of the people and will dissatisfy the people. As a result, eventually, people will not be able to work properly and they will want to exit your organization. (Got it?)

Then the other reason can be, "unrealistic goals".

Sometimes if the targets are made unrealistic, then definitely the employees will try for a while, then rebel, and finally exit.

Then one more reason is, "lack of support".

If you are not able to support your employees in your organization, or as a supervisor or people leader, if you are not able to provide the required support to your employees in terms of their work, what they need, their growth, and if they have any genuine requests and if you are not able to stand up for them, then gradually the trust of the employees starts to lose. And eventually, they leave the organization. (Right?)

Another factor is "cognitive dissonance". What happens in this is that you have your own particular thoughts, beliefs, and ideas. Now, suppose some actions are happening exactly opposite to that, then a dissonance will be created that means we will experience a repel force.

And this cognitive dissonance will continue until the causes of dissonance are not addressed. If they are not addressed, then the employee will get tired and leave your organization. Okay.

Now, the second type of turnover is "involuntary turnover".

Now, here the employer initiates the separation. Understand the difference, in voluntary turnover, the employee initiates the separation, whereas here the employer initiates the separation. (Got it?)

So, in “involuntary turnover”, the employer initiates the separation due to an employee’s poor performance”. Now, generally what happens is, first a chance is given, if there is any improvement with the performance improvement plan, or if the employee starts taking some initiatives, then perhaps the employee can be retained.

But sometimes it happens that due to certain circumstances the employee is not able to perform up to the mark. So, within this, if you find the adequate facts and identify what is the exact cost if the skill is the issue, then we can repair it, by providing them with adequate skill programs, they can be brought up to speed. But if a will is an issue, then those things get a little messy. Okay. In that scenario, we have to ask the employee to leave the organization.

Then next comes "disability". If the person is not able to perform the role in the particular department in which he/she is working because of certain disabilities, maybe because of some accident or some mishap due to which the employee is no longer fit to work in that position. Well, in that case, according to the organization’s policy the compensation should be given and they have to be asked to leave. (Got it?)

But there are other options too. You can identify a role within the organization to where that person can be moved. So, you should also explore the other options before you ask the person to actually leave.

Then the other cause can be "death". Let’s say, for example, the person is no more, then separation is done from that role by providing adequate compensation to his family. The person is removed from the payroll of the organization. Okay.

Then, due to “firm’s restructuring, downsizing, merger or acquisition” too, the employees might be asked to leave.

If the organization is downsizing, then obviously they don’t have enough resources to retain their entire talent pool within the firm. In merger and acquisition, the other organization has a say in how many people they need, and based on that, the employee strength is redecided. Okay.

Thank you.

(16:22-16:55 end music)