Category Archives: Furloughs/Layoffs/Turnover

Are There Hidden Costs Associated With Conducting Layoffs? The Impact of Reduction‐in‐Force and Layoff Notices on Teacher Effectiveness

Source: Katharine O. Strunk, Dan Goldhaber, David S. Knight, Nate Brown, Journal of Policy Analysis and Management, Early View, First published: July 5, 2018
(subscription required)

From the abstract:
Few studies examine employee responses to layoff‐induced unemployment risk; none that we know of quantify the impact of job insecurity on individual employee productivity. Using data from the Los Angeles Unified School District (LAUSD) and Washington State during the Great Recession, we provide the first evidence about the impact of the layoff process on teacher productivity. In both sites we find that teachers impacted by the layoff process are less productive than those who do not face layoff‐induced job threat. LAUSD teachers who are laid off and then rehired to return to the district are less productive in the two years following the layoff. Washington teachers who are given a reduction‐in‐force (RIF) notice and are then not laid off have reduced effectiveness in the year of the RIF. We argue that these results are likely driven by impacts of the layoff process on teachers’ job commitment and present evidence to rule out alternate explanations.

Job Hopping Growth Raises Counteroffer Questions

Source: Maureen Minehan, Employment Alert, Volume 35, Issue 11, May 29, 2018
(subscription required)

More employees than ever view job hopping as a good idea, according to new research from global staffing firm Robert Half. Sixty-four percent of the professionals they surveyed said changing roles every few years can be beneficial to their careers, a 22% increase since 2014.

Higher salaries are seen as the biggest perk of job hopping, followed by gaining new skills and moving up the career ladder faster. While employees under the age of 35 are the most likely to see job hopping as a sound strategy (75%), a majority of employees aged 35-54 (59%) and workers aged 55 and older (51%) or older also view it as beneficial. ….

While investing in employees’ growth and making your company a great place to work are good steps to take, a number of employees will still seek new opportunities. In those cases, employers will have to decide whether to make a counteroffer in hopes of retaining them or wish the employees well and let them go. ….

How Have Pension Cuts Affected Public Sector Competitiveness?

Source: Laura D. Quinby, Geoffrey T. Sanzenbacher, and Jean-Pierre Aubry, ons for the 2014 improvements, according to their, Issue Brief, April 9, 2018

Summary:
State and local data from 2005 to 2014 show the impact pension cuts have on the ability of governments to recruit, retain, and retire talented employees.

Key findings:
One of the central findings is that, especially for new hires, the implementation of pension reform hampered governments’ ability to attract new employees. This is important to note in an environment where governments are experiencing increases in retirements and are competing for talent at a time when unemployment rates, especially for those with college degrees, are relatively low.

Inflexible jobs also make non-parents miserable

Source: Jared Wadley, Futurity, April 30, 2018

Work-life balance is not an issue exclusive to women, particularly mothers, new research shows. Men and people without children can suffer when they feel that their workplace culture is not family-friendly, as well.

When employees think their careers will suffer if they take time away from work for family or personal reasons, they have lower work satisfaction and experience more work-life spillover. In addition, they are more likely to intend to leave their jobs, say researchers…..

….People typically think only women and moms experience work-family issues, and need flexible work arrangements, like telecommuting, part-time work, or job sharing. Society believes it’s women who bear the brunt of unfriendly work cultures, when it actually impacts all genders, says Lindsey Trimble O’Connor, lead author and assistant professor of sociology at California State University Channel Islands…..

Related:
Not Just a Mothers’ Problem: The Consequences of Perceived Workplace Flexibility Bias for All Workers
Lindsey Trimble O’Connor, Erin A. Cech, Sociological Perspectives, Online First, April 13, 2018
(subscription required)

From the abstract:
Flexibility bias and the “ideal worker” norm pose serious disadvantages for working mothers. But, are mothers the only ones harmed by these norms? We argue that these norms can be harmful for all workers, even “ideal” ones—men without caregiving responsibilities who have never used flexible work arrangements. We investigate how working in an environment where workers perceive flexibility bias affects their job attitudes and work-life spillover. Using representative survey data of U.S. workers, we find that perceived flexibility bias reduces job satisfaction and engagement and increases turnover intentions and work-life spillover for all types of workers, even ideal workers. The effects of perceived bias on satisfaction, turnover, and spillover operate beyond experiences with family responsibilities discrimination and having colleagues who are unsupportive of work-life balance. We show that workplace cultures that harbor flexibility bias—and, by extension, that valorize ideal work—may affect the entire workforce in costly ways.

Firm Turnover and the Return of Racial Establishment Segregation

Source: John-Paul Ferguson, Rembrand Koning, Stanford University Graduate School of Business Research Paper No. 17-50, January 8, 2018

From the abstract:
Racial segregation between American workplaces is greater today than it was a generation ago. This increase has happened alongside the declines in within-establishment occupational segregation on which most prior research has focused. We examine more than 40 years of longitudinal data on the racial employment composition of every large private-sector workplace in the United States to calculate between-area, between-establishment, and within-establishment trends in racial employment segregation over time. We demonstrate that the return of racial establishment segregation owes little to within-establishment processes but rather stems from differences in the turnover rates of more- and less-homogeneous workplaces. Present research on employment segregation focuses intently on within-firm processes. By doing so, we may be overstating what progress has been made on employment integration and ignoring other avenues of intervention that may give greater leverage for further integrating firms.

Who stays, who goes, who knows? A state-wide survey of child welfare workers

Source: Austin Griffiths, David Royse, Kalee Culver, Kristine Piescher, Yanchen Zhang, Children and Youth Services Review, Volume 77, June 2017
(subscription required)

From the abstract:
Child welfare workforce turnover remains a significant problem with dire consequences. Designed to assist in its retention efforts, an agency supported state-wide survey was employed to capture worker feedback and insight into turnover. This article examines the quantitative feedback from a Southern state’s frontline child welfare workforce (N = 511), examining worker intent to leave as those who intend to stay employed at the agency (Stayers), those who are undecided (Undecided), and those who intend to leave (Leavers). A series of One-Way ANOVAs revealed a stratified pattern of worker dissatisfaction, with stayers reporting highest satisfaction levels, followed by undecided workers, and then leavers in all areas (e.g., salary, workload, recognition, professional development, accomplishment, peer support, and supervision). A Multinomial Logistic Regression model revealed significant (and shared) predictors among leavers and undecided workers in comparison to stayers with respect to dissatisfaction with workload and professional development, and working in an urban area. Additionally, child welfare workers who intend to leave the agency in the next 12 months expressed significant dissatisfaction with supervision and accomplishment, and tended to be younger and professionals of color.

Highlights
• Child welfare worker intent to leave is best examined through a continuum.
• A stratified pattern of dissatisfaction emerged when exploring this continuum.
• A multinomial logistic regression model revealed significant (and shared) predictors.

Do Reform Values Matter? Federal Worker Satisfaction and Turnover Intention at the Dawn of the Trump Presidency

Source: Sung Min Park, Maria Ernita Joaquin, Kyoung Ryoul Min, Reginald G. Ugaddan, American Review of Public Administration, Online First, First Published May 4, 2017
(subscription required)

From the abstract:
With heightened bureaucratic bashing and the planned reorganization of the U.S. federal bureaucracy, hiring is going to be difficult, but what could make those already in the service satisfied and willing to stay in their jobs? How could flexible work systems have an impact on worker job satisfaction and turnover intention? Using hierarchical linear modeling, we explore the impact of alternative work systems on employee job satisfaction and turnover intention in the context of values underlying managerial reforms. Flexible work systems are found to have a positive impact moderated by the kind of values promoted by particular reforms. A discussion on the main findings, research, and practical implications for public human resource management theory and practice is provided.

Employee Burnout Is a Problem with the Company, Not the Person

Source: Eric Garton, Harvard Business Review, April 6, 2017

Employee burnout is a common phenomenon, but it is one that companies tend to treat as a talent management or personal issue rather than a broader organizational challenge. That’s a mistake.

The psychological and physical problems of burned-out employees, which cost an estimated $125 billion to $190 billion a year in healthcare spending in the U.S., are just the most obvious impacts. The true cost to business can be far greater, thanks to low productivity across organizations, high turnover, and the loss of the most capable talent. Executives need to own up to their role in creating the workplace stress that leads to burnout—heavy workloads, job insecurity, and frustrating work routines that include too many meetings and far too little time for creative work. Once executives confront the problem at an organizational level, they can use organizational measures to address it…..

Private Equity, Layoffs, and Job Polarization

Source: Martin Olsson, Joacim Tåg, Journal of Labor Economics, Ahead of Print, March 29, 2017
(subscription required)

From the abstract:
Private equity firms are often criticized for laying off workers, but the evidence on who loses their jobs and why is scarce. This paper argues that explanations for job polarization also explain layoffs after private equity buyouts. Buyouts reduce agency problems, which triggers automation and offshoring. Using rich employer-employee data, we show that buyouts generally do not affect unemployment incidence. However, unemployment incidence doubles for workers in less productive firms who perform routine or offshorable job tasks. Job polarization is also much more marked among workers affected by buyouts than for the economy at large.