Category Archives: Furloughs/Layoffs/Turnover

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.

Predictors of Intent to Leave the Job Among Home Health Workers: Analysis of the National Home Health Aide Survey

Source: Robyn Stone, Jess Wilhelm, Christine E. Bishop, Natasha S. Bryant, Linda Hermer, and Marie R. Squillace, The Gerontologist, Advance Access, First published online: April 21, 2016
(subscription required)

From the abstract:
Purpose: To identify agency policies and workplace characteristics that are associated with intent to leave the job among home health workers employed by certified agencies.

Design and Methods: Data are from the 2007 National Home and Hospice Care Survey/National Home Health Aide Survey, a nationally representative, linked data set of home health and hospice agencies and their workers. Logistic regression with survey weights was conducted to identify agency and workplace factors associated with intent to leave the job, controlling for worker, agency, and labor market characteristics.

Results: Job satisfaction, consistent patient assignment, and provision of health insurance were associated with lower intent to leave the job. By contrast, being assigned insufficient work hours and on-the-job injuries were associated with greater intent to leave the job after controlling for fixed worker, agency, and labor market characteristics. African American workers and workers with a higher household income also expressed greater intent to leave the job.

Implications: This is the first analysis to use a weighted, nationally representative sample of home health workers linked with agency-level data. The findings suggest that intention to leave the job may be reduced through policies that prevent injuries, improve consistency of client assignment, improve experiences among African American workers, and offer sufficient hours to workers who want them.

Wages, Caregiver Shortages Top List of Home Health Threats

Source: Amy Baxter, Home Health Care News, May 24, 2016

Private duty home care providers are more concerned about caregiver shortages and wage pressures than ever before, according to a recent study. For the first time, wage pressures are being named as one of the top three threats of the home care industry, Home Care Pulse’s 2016 Benchmarking Study found.

….Caregiver turnover was also named as a threat, with 22.4% of participants naming it in their top three concerns. The response is similar to 2015, when 22.1% said this was a top concern, compared to 13.4% in 2014.

A new threat this year that participants listed was rising minimum wage rates, as the fight for a $15 minimum wage has gained significant momentum. While only a handful of states have enacted a $15 minimum wage, including California, Illinois and New York, more are slated to consider the limit and numerous cities have acted on the initiative, including Seattle.

More than a quarter—26.6% of participants—said increasing minimum wages was a top threat for the industry. This response wasn’t even measured the previous two years….

Working Longer: The Disappearing Divide between Work Life and Retirement

Source: Associated Press-NORC Center for Public Affairs Research

From the summary:
….This study extends that research and examines new topics, including older workers’ efforts to improve their career skills and their plans to adjust the parameters of work in the later stages of their working life. The survey also tracks a number of attitudes and behaviors that were examined in 2013 surrounding issues facing older workers. The AP-NORC Center, with funding from The Alfred P. Sloan Foundation, conducted 1,075 interviews with a nationally representative sample of Americans age 50 and older.

These results provide insights for employers navigating new terrain as they face an older workforce, and for policymakers grappling with how to help older Americans with the transition into retirement.

Five things you should know from The AP-NORC Center’s Working Longer Study Among adults age 50 and older:
– Fifty-five percent plan to work past the age of 65 or have already done so.
Nearly two-thirds of those deciding to work past age 65 say they made this choice mostly for financial reasons.
– Twenty-five percent of those who are not retired say they never plan to retire.
– More than a quarter of workers have received job training or additional education in the past five years.
– Forty-one percent have spent at least 20 years working for the same employer, including 18 percent who have spent at least 30 years doing so. ….

Related:
Poll: Age, income factors in staying with single employer
Source: Adam Allington, Associated Press, May 10, 2016

A new poll says more than 40 percent of America’s baby boomers stayed with their employer for more than 20 years. But it’s unlikely that their children or grandchildren will experience the same job tenure.
The survey of more than 1,000 Americans 50 and older by the Associated Press-NORC Center for Public Affairs Research shows that 41 percent of those employed workers have spent two decades with the same company, including 18 percent who’ve stayed at least 30 years. …. The shift may be less about differences in attitude than changes in jobs — and benefits. About two-thirds of those who stayed with one employer for 20 or more years had a pension, according to the survey, compared with only a third of those who had never stayed that long with one employer. Those defined benefit pension plans are slowly disappearing. The Bureau of Labor Statistics reported that only 18 percent of private workers were covered by these plans in 2011, down from 35 percent in the early 1990s. ….

Are Public Sector Jobs Recession-proof? Were They Ever?

Source: Jason L. Kopelman, Harvey S. Rosen, Public Finance Review, Vol. 44 no. 3, May 2016
(subscription required)

From the abstract:
We use data from the Displaced Worker Surveys from 1984 to 2012 to investigate the differences in job loss rates between workers in the public and private sectors. Our focus is on how recessions affect the differential between job loss rates in the two sectors. We find that even after accounting for worker characteristics, the probability of job loss is higher for private sector workers than for public sector workers at all levels of government. The advantage of public sector employment in terms of job loss rates generally increases during recessions for all groups of public sector workers. Thus, the answer to the question posed in the title is that public sector jobs, while not generally recession-proof, do offer more security than private sector jobs, and the advantage widens during recessions. These patterns are present across genders, races, and educational groups.
Other versions:
Are Public Sector Jobs Recession-Proof? Were They Ever?
Source: Jason L. Kopelman, Harvey S. Rosen, National Bureau of Economic Research (NBER), NBER Working Paper No. 20692, November 2014
(subscription required)

What makes home health workers think about leaving their job? The role of physical injury and organizational support

Source: Ahyoung Anna Lee & Yuri Jang, Home Health Care Services Quarterly, Published online: February 1, 2016
(subscription required)

From the abstract:
Based on the job demands-resources (JD-R) model, this study explored the role of physical injury and organizational support in predicting home health workers’ turnover intention. In a sample of home health workers in Central Texas (n = 150), about 37% reported turnover intention. The logistic regression model showed that turnover intention was 3.23 times more likely among those who had experienced work-related injury. On the other hand, organizational support was found to reduce the likelihood of turnover intention. Findings suggest that injury and organizational support should be prioritized in prevention and intervention efforts to promote home health workers’ safety and retention.