The termination of employees from membership of the organization is referred as employee separation. The rate at which employees leave the organization is measured by the rate of employee separation.
The Costs of Employee Separation
The employee separation is always resulted in some costs. The intensity of the incurring costs varies on the basis of the decision of the management that either the empty position of separated employee is replaced by a new employee or the position may be eliminated permanently. Following are the costs that are linked with the employee separation.
- Recruitment Costs
- Selection Costs
- Training Costs
- Separation Costs
Benefits of Employee Separation
On one hand there are costs attached with the employee separation, but on the other hand there are some resulting benefits too. Following are some of the Employee Benefits that are associated with the employee separation.
- The labor cost is reduced
- The employees who perform poorly, are replaced
- The innovation is increased in the organization
- The diversity is enhanced in the organization
Types of Employee Separation
There are two main types of employee separations on the basis of the initiation of the employment relationship termination. These two types of employee separations are as follow.
- Voluntary Separation
When an employee terminates the employment relationship, then this form of employee separation is known as voluntary separation. Voluntary separation is further divided into two categories.
- Involuntary Separation
When employer of an organization ends the employment relationship with any employee, then this employee separation is called involuntary separation. There may be a number of reasons for involuntary separations like the employee does not fit with the requirements of a particular job or due to economic necessity. Involuntary separation is further divided into the following categories.
- Rightsizing or downsizing