Employee Turnover and Compensation Concepts

Flashcards to help students review key terms and concepts related to employee turnover, compensation structures, and workplace justice principles.

Involuntary Turnover

Turnover initiated by the organization, often among people who would prefer to stay.

Voluntary Turnover

Turnover initiated by employees, whom the company would prefer to keep.

Employment-At-Will Doctrine

A doctrine stating that, in the absence of a specific contract, either an employer or an employee may sever the employment relationship at any time.

Procedural Justice

A concept of justice focusing on the methods used to determine the outcomes received.

Interactional Justice

A concept of justice referring to the interpersonal nature of how the outcomes were implemented.

Alternative Dispute Resolution (ADR)

A method of resolving disputes that doesn’t rely on the legal system, often proceeding through stages such as open door policy, peer review, mediation, and arbitration.

Employee Assistance Program (EAP)

An employer program that attempts to ameliorate problems encountered by workers who are drug dependent, alcoholic, or psychologically troubled.

Outplacement Counseling

Counseling to help displaced employees manage the transition from one job to another.

Progression of Withdrawal

The theory that dissatisfied individuals enact a set of behaviors to avoid the work situation.

Whistle-Blowing

Making grievances public by going to the media or government.

Job Involvement

The degree to which people identify themselves with their jobs.

Organizational Commitment

The degree to which an employee identifies with the organization and is willing to put forth effort on its behalf.

Job Satisfaction

A pleasurable feeling that results from the perception that one's job fulfills or allows for the fulfillment of one's important job values.

Frame of Reference

A standard point that serves as a comparison for other points and thus provides meaning.

Negative Affectivity

A dispositional dimension that reflects pervasive differences in satisfaction with any and all aspects of life.

Job Rotation

The process of systematically moving a single individual from one job to another over the course of time.

Retention

The ability of an organization to keep its employees over time; how well a company can maintain its workforce and prevent turnover.

Distributive Justice

Perceived fairness of the outcomes or distribution of resources such as pay, promotions, and rewards.

Procedural Justice

The fairness of processes and procedures used to make decisions, enhancing trust in the organization.

Pay Level

The average pay, including wages, salaries, and bonuses, of a job in an organization.

Job Evaluation

An administrative procedure used to measure internal job worth.

Pay Policy Line

A mathematical expression that describes the relationship between a job's pay and its job evaluation.

Equity Theory

A theory that focuses on the perception of fairness in the workplace by comparing effort, skills, and experience to salary, benefits, and recognition.

Merit Pay

Traditional form of pay in which base pay is increased permanently based on individual performance.

Profit Sharing

A compensation plan in which payments are based on a measure of organization performance and do not become part of the employee's base salary.

Cash Balance Plan

A retirement plan where the employer sets up an individual account for each employee and contributes a percentage of the employee's salary.

Employee Stock Ownership Plans (ESOPs)

An employee ownership plan that provides employers certain tax and financial advantages when stock is granted to employees.

Family & Medical Leave Act (FMLA)

An act that requires employers with 50+ employees to provide up to 12 weeks of unpaid leave after childbirth or adoption.