Category Archives: Furloughs/Layoffs/Turnover

Pension Structure and Employee Turnover: Evidence from a Large Public Pension System

Source: Dan Goldhaber, Cyrus Grout, Kristian L. Holden, ILR Review, Online First, Published online before print November 4, 2016
(subscription required)

From the abstract:
Public pension systems in many U.S. states face large funding shortfalls, and policymakers have considered moving toward defined contribution (DC) pension structures in the interest of reducing the likelihood of future shortfalls. Concerns exist, however, that such changes might increase levels of employee turnover. The empirical evidence on the relationship between pension structure and turnover is mixed, and is quite limited in the case of public-sector plans. The authors study a single class of public-sector employees (teachers) who are enrolled in either a traditional defined benefit (DB) plan or a hybrid DB-DC plan during overlapping periods of time. Contrary to conventional wisdom, the authors find little evidence that the introduction of the hybrid plan increased employee turnover; in fact, they find that turnover is lower among teachers who transferred out of the DB plan into the hybrid plan. Employers may benefit by shifting the debate away from plan structure per se and toward a discussion of how to provide employees with pension plans they will highly value.

Evidence-Based Change in Public Job Security Policy: A Research Synthesis and Its Practical Implications

Source: Hyunkang Hur, James L. Perry, Public Personnel Management, Vol. 45 no. 3, September 2016
(subscription required)

From the abstract:
For most of the 20th century, public employers granted their employees high levels of job security. The 21st century has brought a reversal of fortunes, with emphasis increasingly on at-will employment systems. Both distant and recent policy choices about job security have been based largely on normative and ideological considerations rather than behavioral science evidence. This article synthesizes public- and private-sector job security research to provide a more evidence-based footing for future public job security policy. Although changes related to job security are global, our attention is primarily on the United States. The article reviews job security research with origins in organizational behavior research, at-will employment research, and institutionalization and public trust research across sectors. Based on the review of the literature, we develop an integrative model of job security. We highlight practical implications that flow from the model and discuss future research needs.

Does Satisfaction With Family-Friendly Programs Reduce Turnover? A Panel Study Conducted in U.S. Federal Agencies

Source: James Gerard Caillier, Public Personnel Management, vol. 45 no. 3, September 2016
(subscription required)

From the abstract:
This article sought to understand the association between employee satisfaction with several family-friendly programs and turnover in U.S. federal agencies. It also built on previous cross-sectional studies that examined the relationship between these benefits and both attitudes and outcomes. More specifically, this article used social exchange theory to develop hypotheses regarding the effect of telework, alternative work schedules, child care subsidies, elder care, employee assistance programs, and health and wellness programs on turnover. Furthermore, 4 years of panel data were obtained from the Federal Employee Viewpoint Survey and FedScope to test the hypotheses. Consistent with social exchange theory, results from the balanced panel model indicate that satisfaction with family-friendly programs in general had a significant, negative effect on turnover at the .10 level. The results also indicate that alternative work schedules, child care programs, and employee assistance programs reduced turnover. Child care and employee assistance programs were significant at the .10 level. Telework, elder care, and health and wellness programs, on the other hand, were not found to have an impact on turnover. The implications the results have for theory and practice are discussed in the article.

Why People Quit Their Jobs

Source: Harvard Business Review, September 2016

….Attrition has always been expensive for companies, but in many industries the cost of losing good workers is rising, owing to tight labor markets and the increasingly collaborative nature of jobs. (As work becomes more team-focused, seamlessly plugging in new players is more challenging.) Thus companies are intensifying their efforts to predict which workers are at high risk of leaving so that managers can try to stop them. Tactics range from garden-variety electronic surveillance to sophisticated analyses of employees’ social media lives.

Some of this analytical work is generating fresh insights about what impels employees to quit. In general, people leave their jobs because they don’t like their boss, don’t see opportunities for promotion or growth, or are offered a better gig (and often higher pay); these reasons have held steady for years. New research conducted by CEB, a Washington-based best-practice insight and technology company, looks not just at why workers quit but also at when….

2016 Healthcare Staffing Survey Report

Source: NSI Nursing Solutions Inc., 2016

This annual report provides survey findings regarding: nursing workforce data & trends, the impact of the Nursing Shortage on hospitals, vacancy rates, scheduling/staffing strategies, non-productive time, recruitment metrics, RN turnover rates & cost, and top recruitment/staffing strategies; including cost/benefit analysis and ROI.
Related:
Nurse Staffing Dashboard (Excel workbook)
This scorecard enables you to measure your hospitals performance in key staffing areas: RN Vacancy Rate, RN Turnover, Hospital Turnover, etc.

2016 Nursing Workforce and Compensation Report
This report illustrates Executive and RN Perceptions on the nursing shortage and strategy considerations. Additional topics include: RN labor market supply & demand, workforce demographics, the impact of the Nursing Shortage on hospitals, vacancy rates, recruitment metrics, turnover, orientation costs, labor economics and RN compensation.

Pension Enhancements and the Retention of Public Employees

Source: Cory Koedel and P. Brett Xiang, ILR Review, OnlineFirst, Published online before print May 16, 2016
(subscription required)

From the abstract:
The authors use data from workers in the largest public-sector occupation in the United States—teaching—to examine the effect of pension enhancements on employee retention. Specifically, they study a 1999 enhancement to the benefit formula for public school teachers in St. Louis, Missouri, that resulted in an immediate and dramatic increase in their incentives to remain in covered employment. To identify the effect of the enhancement on teacher retention, the analysis leverages the fact that the strength of the incentive increase varied across the workforce depending on how far teachers were from retirement eligibility when it was enacted. The results indicate that the St. Louis enhancement—which was structurally similar to enhancements that were enacted in other public pension plans across the United States in the late 1990s and early 2000s—was not a cost-effective way to increase employee retention.

Millennial Employees: Flight Risk for Companies

Source: J. Brandon Rigoni and Bailey Nelson, Gallup, Business Journal, August 25, 2016

Highlights:
– Technology drives millennials’ company research
– Understanding how millennials seek jobs is key to attracting them
– Companies need to actively promote their brands

….Six in 10 millennials say they’re open to different job opportunities, and only 50% plan to be with their company one year from now. For most companies, millennials are a “flight risk.”…
Related:
Millennial Job-Hoppers: What They Seek
Source: J. Brandon Rigoni and Amy AdkinsGallup, Business Journal, May 19, 2016
Highlights:
– Millennials don’t stay with their current company to find new roles
– They see jobs as steppingstones and growth opportunities
– Workplaces that are fun or encourage creativity are not a priority

…..Gallup asked workers how important particular attributes were to them when applying for new jobs. Among millennials, we discovered that the top five factors are:
– opportunities to learn and grow
– quality of manager
– quality of management
– interest in type of work
– opportunities for advancement……

Does Turnover Intention Matter? Evaluating the Usefulness of Turnover Intention Rate as a Predictor of Actual Turnover Rate

Source: Galia Cohen, Robert S. Blake, Doug Goodman, Review of Public Personnel Administration, Vol. 36 no. 3, September 2016
(subscription required)

From the abstract:
Turnover research has traditionally examined intention to turnover rather than actual turnover. Such studies assume that leave intent serves equally well as both a proxy for and predictor of employees’ actual turnover behavior. The purpose of this study is to provide an agency-level evaluation of the usefulness of turnover intention as a reliable proxy and predictor of actual turnover across 180 U.S. federal agencies, using hierarchical (stepwise) multiple regression. Our findings suggest that, at the organizational level, turnover intention and actual turnover are distinct concepts, predicted by different sets of variables. Based on these findings, we conclude that public managers tasked with retention might have better foresight concentrating on their agencies’ unique demographic characteristics and specific management practices, rather than on their employees’ self-reported aggregated turnover intention rate.

Job Satisfaction: 2016 Edition: Tightening Labor Market Means More Opportunity, More Satisfaction

Source: Michelle Kan, Gad Levanon, Allen Li, Rebecca L. Ray, Conference Board, Report Number: TCB-1605-Job Satisfaction 2016, July 2016
(subscription required)

From the abstract:
According to the current edition of The Conference Board Job Satisfaction survey, nearly half of US workers (49.6 percent) are satisfied with their jobs. After improving incrementally since the postrecession recovery period, overall job satisfaction is at its highest since 2005. The rapidly declining unemployment rate, combined with increased hiring, job openings, and quits, signals a seller’s market, where the employer demand for workers is growing faster than the available supply.

For the first time, a map of job satisfaction by state is included in the report.

Also available for download is a Chartbook containing graphics that were not published in the report but were included in previous editions of Job Satisfaction.

Does Pension Plan Structure Affect Turnover Patterns?

Source: Gregory B. Lewis and Rayna L. Stoycheva, Journal of Public Administration Research and Theory, Advance Access, First published online: May 28, 2016
(subscription required)

From the abstract:
Public pension plans face pressures to cut costs. Although government costs and retiree benefits drive changes in retirement plans, policy makers should also consider impacts on turnover and retirement behavior. In the mid-1980s, Congress moved new federal employees from a traditional defined benefit (DB) pension plan to a new hybrid plan, comprised of a smaller DB plan, Social Security, and a new defined contribution (DC) plan. Early analyses of the change from the Civil Service Retirement System (CSRS) to the Federal Employees Retirement System (FERS) found a decrease in turnover rates, but our analysis of a 1% sample of federal personnel records from 1979 to 2009 indicates that exit rates for federal employees in their late 30s to early 50s are one-third higher under FERS than they were for comparable employees under CSRS. Conversions to fully DC plans by state and local governments could have even larger impacts on the stability of their workforces.