Chapter 9 Employee Retention and Terminations
Leadership Strategies to Enhance Retention and Productivity (9.1)
Employee Selection Processes
Managers must begin building a relationship of trust and respect during the initial selection phase.
Avoid "Warm Body" Syndrome: This refers to the practice of hiring anyone available simply to fill a position without regard for fit or quality. Managers should avoid this and instead take the necessary time to recruit the right candidates.
Candidate Education: It is vital that candidates learn about the operation before hiring.
Honesty Regarding Duties: Managers must be honest about specific job responsibilities. For example, servers should be informed if they are required to mop floors, and cooks should know if they are expected to wash pots and pans.
Effective Supervision and the "Employer of Choice"
Managers who help employees find pride and satisfaction in their work, and who demonstrate genuine care and respect, reap benefits including higher customer satisfaction, increased profits, and lower turnover rates.
An Employer of Choice is an operation where employees enjoy their work and actively encourage family and friends to join the team, leading to fewer terminations.
Ongoing performance appraisals, career planning, and coaching activities have a positive effect on retention.
Training Standards
Training must be planned and structured rather than just having a new hire shadow an experienced employee.
Drawbacks of Shadowing-Only Training:
New employees may learn incorrect procedures.
It conveys the impression that the manager is not concerned with the new employee's success.
Effective Steps for Training:
Create a structured training plan.
Use a variety of training tools (e.g., eLearning modules, training videos).
Assign a dedicated mentor or trainer.
Evaluate and adjust training regularly.
Modern Workplace Disengagement Concepts
Quiet Quitting: A term describing employees who do the bare minimum required by their job description without going above and beyond. These employees are disengaged, lack motivation, and are just "going through the motions" because they feel undervalued, overworked, or disconnected from the mission.
Quiet Firing: This occurs when managers (often unintentionally) create conditions that encourage an employee to leave. Actions include reducing work hours, withholding feedback or praise, limiting growth opportunities, or failing to address frustrating conflicts.
Progressive Discipline Procedures (9.2)
Definition and Objectives
Progressive Discipline: A strategy that assists employees in improving performance until it reaches established standards. It asks questions like: Does the employee need retraining? Would coaching help? Do they need better tools? Should they be transferred?
Primary Goal: To improve employee performance and retain the employee.
Key Objectives:
Minimize misunderstandings between manager and employee.
Provide specific evidence of unacceptable performance and guidelines/assistance for improvement.
Ensure sufficient time and opportunity to improve.
Reduce terminations and document steps taken to "salvage" the employee.
Promote fairness, consistency, and managerial accountability.
Protect employee morale and support development.
Step 1: The Oral Warning
Involves an informal but direct discussion of the problem.
Requires two-way communication and an agreement on the solution (e.g., fixing an untidy uniform or stopping the chewing of gum in public areas).
Components of an Oral Warning:
Identification of the problem and its causes with specific examples.
Definition of the employee's role in the solution.
Outline of specific actions for both employee and manager.
A clear timetable for assessing progress.
Notice of disciplinary action if performance does not improve.
Communication of achievable expectations and provision of support/resources.
Scheduled follow-up and feedback sessions.
Step 2: The Written Warning
Involves a formal meeting held privately in the manager's office.
The written report must include: Date/time, statement of the problem, comparison of behavior to standards, an action plan, objective measurement methods, and a deadline.
The employee should review the report, express thoughts in writing, and both parties must sign it before it is placed in the employee file.
Relevant for issues like excessive absenteeism or failure to follow instructions.
Step 3: Probation (Performance Improvement Plan - PIP)
A specific time period where the employee must consistently meet job standards to remain employed.
Requires a written notice, signed by both, placed in the file.
Must explain the reason, the length of the period, clear expectations for the probation to be lifted, and the consequences of failure.
Management Responsibilities in Discipline
Reasonable Timelines: Managers must consider how long it takes to correct behavior. For example, a slow line cook might be corrected differently or at a different priority than a slow server.
Consistency and Legality: Rules must be clearly written and comply with legal standards (applying the same rules regardless of age, gender, etc.).
Support for Success: Managers must investigate barriers to success.
Example: A salad prep employee struggling to keep up might be found to be chopping by hand because they weren't trained on the salad cutter mixer.
Procedures for Employee Termination (9.3)
Impact of Termination
Causes operational challenges including scheduling gaps.
Managers may use "on call" employees or extra hours for existing staff until a replacement is trained.
Types of Termination
Voluntary Termination: Expected and unavoidable. Reasons include better positions elsewhere, career changes, family needs, relocation, schooling, or retirement.
Involuntary Termination: Done for the benefit of the organization. Reasons include lack of work, lack of funding, unsatisfactory performance, or violation of company policy.
Wrongful Discharge: A legal action taken by a former employee claiming termination violated anti-discrimination laws, a contract, or a written promise.
The 7-Step Termination Process
Identify Cause: Must be a legal, policy-based cause.
Ensure Documentation: Confirm all procedures were followed.
Obtain Approvals: Seek legal advice and confirm the disciplinary process was sufficient.
Assemble Package: Gather payroll information, benefits concerns, and necessary forms.
Conduct Meeting: Held in a private setting with a third-party witness. The goal is not to debate or allow a "second chance."
Surrender Property: Collect all company-owned items.
Adjust Security: Escort the person out, change door locks, and update computer passwords.
Terminable Acts: Certain actions may lead to immediate termination outside the progressive discipline schedule, such as disruptive behavior, insubordination, theft, harassment, or drug/alcohol abuse.
Exit Interviews and Separation
Exit Interview: Used to learn about grievances, reasons for leaving, and ways the company can improve. Leads to reduced turnover and better management development.
Interviews can be structured (specific questions) or unstructured, and delivered orally or in writing (with open-ended or multiple-choice questions).
Separation Checklist: A list of activities to complete for departing employees, including providing COBRA information.
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows employees to continue health insurance by paying of the cost.
Unemployment Compensation (9.4)
Program Basics
Administered at the state level under federal guidelines.
Provides benefits and income to workers who become unemployed through no fault of their own.
Benefits are typically a percentage of earnings over a -week period.
Standard benefits are paid for a maximum of weeks, though this can extend up to weeks inบาง scenarios.
Business Considerations
Thorough documentation of terminations is essential to explain performance problems and support the operation's decision.
Proper documentation helps reduce the number of unemployment claims made against the business.
Questions & Discussion
Knowledge Check: Section 9.1
Question: What are two major shortcomings of allowing new employees to only shadow experienced employees during training?
Answer: New employees may learn incorrect procedures, and it gives the impression that the manager is not concerned with the new employee's success.
Question: How can eLearning modules and training videos benefit a restaurant or foodservice operation’s training program?
Discussion: They provide consistent, structured delivery of information and allow for regular adjustment and evaluation of the training plan.
Knowledge Check: Section 9.2
Question: What is the primary purpose of a progressive discipline strategy?
Answer: To improve employee performance and retain the employee.
Question: Why is it important to establish a clear timeline in the progressive discipline process?
Answer: To ensure the employee is given a reasonable and sufficient amount of time to improve while providing a clear date for follow-up evaluation.
Question: How does including the employee’s input in a progressive discipline plan contribute to its effectiveness, and what are the risks of excluding their perspective?
Discussion: Inclusion ensures the employee understands their responsibility and actively participates in the solution; exclusion can lead to misunderstandings and a failure to address root causes like lack of equipment or improper initial training.
Knowledge Check: Section 9.3
Question: What are two main challenges that managers face when an employee is terminated and needs to be replaced?
Answer: Operational impact (scheduling gaps) and the need for immediate retraining of new hires.
Question: What are three types of costs associated with employee terminations that are difficult to calculate?
Discussion: These often include loss of productivity during the vacancy, the cost of training time for management, and the impact on remaining staff morale.
Question: What is the difference between voluntary and involuntary termination?
Answer: Voluntary is initiated by the employee (resignation, retirement); involuntary is initiated by the employer (firing for cause, lack of work).
Question: What is the primary purpose of conducting exit interviews and how can they assist managers in making future employment decisions?
Answer: To learn about employee concerns and reasons for leaving to reduce future turnover and improve the overall employee experience.
Knowledge Check: Section 9.4
Question: What should a manager do to protect the restaurant or foodservice operation in case of disputes over unemployment claims?
Answer: Keep thorough documentation of all policies, expectations, and previous disciplinary actions to support the termination decision.
Question: What is a common misunderstanding in unemployment compensation cases that managers should be aware of?
Answer: The belief that any terminated employee qualifies; in reality, they must fulfill state-determined eligibility and have lost their job through "no fault of their own."
Key Terms
COBRA: Consolidated Omnibus Budget Reconciliation Act; provides health insurance continuation.
Exit Interview: Discussion with a departing employee to gather feedback.
Insubordination: Failure to follow direct orders from management.
Involuntary Termination: Employer-initiated separation from employment.
Performance Improvement Plan (PIP): A documented plan to address performance deficiencies.
Probation (Progressive Discipline): A trial period to test if an employee can meet standards.
Progressive Discipline: A multi-step process for corrective action.
Quiet Firing: Discouraging an employee through poor work conditions/neglect.
Quiet Quitting: Doing the absolute minimum job requirements.
Separation Checklist: List of tasks to finalize an employee's departure.
Structured Interview: An interview with a pre-set list of questions.
Terminable Act: An offense severe enough for immediate firing.
Unstructured Interview: A conversational interview without a fixed script.
Voluntary Termination: Employee-initiated separation (e.g., resignation).
W-2 Income Tax Form: Document reporting annual social security/income tax data.
Warm Body Syndrome: Hiring anyone available without standard selection criteria.
Wrongful Discharge: Legal claim of unlawful termination.