BUS-FP3040 Assessment 4 PDF

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The assignment prompts are as follows:
Describe the strategies for retaining high performing employees. Explain policies for handling separation. Identify types of outplacement counseling and employee assistance program. Explain legal implications for organizations as they relate to separatio...

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Running Head: FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT

Fundamentals of Human Resource Management

Mike Spencer BUS-FP3040 Retention, Separation, and Discipline Capella University Professor Lori White

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Describe strategies for retaining high-performing employees Employers know that to retain the best employees they need to go above and beyond the standard salary, vacation and occasional perks like special awards, company outings, or an extra day off with pay. When you have an employee that outperforms a goal, there has to be a reward system in place that shows employees that they’re valued. Most companies consider these employees to be “the top 3 to 5% of a company” (The Recruiting Training Corner, 2018). Rewarding those who go above and beyond isn’t a new idea, but it is one that’s constantly being reviewed and improved as business models change. UHC has a program called Rewarding Results Plan (RRP) that “illustrates UHG’s strong commitment to rewarding high performance” (UHG, Rewarding Results Plan Summary, 2018). There are two award opportunities, Bravo! Awards which are recognition awards that can be done at any time, and there are the Year-End Incentive Awards. This recognizes the highperformers in the company based on the business segment or corporate function goals. Since it’s not a given that an employee will receive this award, it has more meaning for those who do earn it. Some rewards should be “immediate, appropriate, and personal, because they mean more to an employee than a generic company award” (FindLaw, 2018). When employees are rewarded for excellence, they will be more likely to stay at the company and continue to perform at their best. Explain policies for handling separation Whether an employee is voluntarily or involuntarily leaving a company, there should be one overall policy that applies to each form of separation as well as specific procedures that address each type of separation accordingly. Both have many of the same initial actions, but each type has marked differences.

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Voluntary separations can include an employee resigning or retiring. Most companies “expect an employee to provide “written notification with a minimum of two weeks’ notice; will forward the letter to HR to notify them of the separation date for payroll and benefits; conduct an exit interview to discover why the employee is leaving; and keep copies of the separation documents in the employee’s file” (Employer Services Corporation, 2018). If the separation is involuntary, the employer would have already followed the company’s process to correctly and legally terminate an employee. UHG has a procedure called Corrective Action Process, which “allows formal communication between an employee and a manager outlining the improvements needed to meet expectations” (UHG Corrective Action Process, n.d.). Although most companies have specific steps that they use before terminating an employee, there are some actions that can be grounds for immediate dismissal. Drinking or using illegal substances at work, romantic involvement with a manager, bringing a firearm to an office that doesn’t allow them, all of these can be grounds for immediate separation. In these instances, a manager does not have to follow the standard protocols and can terminate an employee on the spot Identify types of outplacement counseling and employee assistance programs When a company decides to terminate an employee, HR should have tools to aid displaced workers decide on their job search, as well as providing services for employees who may need counseling during the process. Outplacement services assist employees who are dealing with the shock of their job loss, as well as career counseling, skill evaluations and resume writing. There are several types of outplacement services available, including “basic assistance which offers short term assistance on resume writing or in-depth programs that offer testing or comprehensive job search support” (Career Research, 2018).

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UHC’s downsizing policy offers a benefits' package that includes a severance agreement, job title and an “Impact of Employment Termination on UnitedHealth Group Benefits” statement. An employee has to sign the severance agreement to receive outplacement benefits” (UHG Reduction in Force and Downsizing, 2018). Employee assistance programs have been an employee benefit for many years, and can offer a wide variety of services to employees, and in some cases, their dependents. An EAP is usually a no cost program and serves as a stopgap option for employees who need assistance. Many EAPs offer assistance with domestic violence, emotional stress due to work or home issues, financial concerns or alcohol and/or substance abuse. It should be noted that an EAP is not health insurance; they offer health or psychological treatment. EAPs are “100 percent paid for by employers who use a third-party administrator. This allows employees to speak to a professional in confidence without fear of losing their job” (Taylor, 2018). Explain legal implications for organizations as they relate to separation policies Human resources managers are responsible for hiring and training employees for a job. They’re also responsible for terminating employees as well, and need to follow specific steps so a terminated employee doesn’t feel that the termination was wrong and decide to sue their former employers for being wrongfully terminated. To avoid any legal consequences, an organization should have written procedures detailing how to terminate an employee. These should include documenting issues relating to job performance that should “include language discussing a progressive discipline policy as well as skipping progressive discipline for particularly egregious behavior” (Business Management Daily, 2018). An HR manager may choose to let the manager handle the termination but should be in the meeting for questions as well as making sure that the termination process is followed correctly to reduce legal issues. Whoever is responsible for firing

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the employee should be concise “communicate the decision accurately, make sure that company property is retrieved before the employee leaves the office, and depending on the state, have a check for the employee with their final salary as well as any vacation time due” (ZipRecruiter, 2014). The person handling the termination has to be clear and firm with the employee, and realize that they can be empathetic with the person but must maintain a high level of professionalism throughout the process. Describe formal discipline policies A business must have a formal disciplinary process in place, and it should outline all of elements that the company has implemented. Some companies use informal counseling to outline what the employees to improve and create an action plan. A formal disciplinary policy should include “graduated steps including a verbal warning, written warning, final written warning and dismissal. In cases of serious misconduct it is permissible to go to stage 4” (Gorry, 2014). The Corrective Action Process that UHC uses has the same format as most companies, and has three levels including initial warning, which is used for “failure to meet performance expectations or a first offense; elevated warning for more serious policy violations or multiple conduct issues that need to be addressed; then final warning, which involves the most serious violations of company policy and results in immediate termination” (UHG, Corrective Action Process, 2018). As with other companies, there are certain infractions such as drug or alcohol abuse, workplace violence or falsifying documents that allow a manager to go to a final warning and termination. Describe dispute resolution processes Some of the more common forms of resolving a dispute include negotiation, mediation, arbitration, and litigation. Most human resource managers will use negotiation as a means to get

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people to discuss the issue before any kind of action is taken. Mediation “is the next common process because it leaves control of the process in the hands of those involved, but can have associated costs due to attorneys and doesn’t guarantee finality unless both parties agree to the settlement” (Honeyman, 2013). Arbitration is usually considered a final option, and both sides chose the final arrangements. It also has costs associated with it since both sides use an arbitrator. Litigation is the final process and takes the longest and has more cost associated with it. It’s also the “only process in which a public forum assesses and may vindicate one party, as well as providing the ability for an appeal” (Honeyman, 2013). UnitedHealth Groups’ dispute resolution process encourages employees to work with their managers to resolve the issues informally before proceeding to the arbitration process. An employee will file a request to dispute the issue which the manager reviews and then discusses it with the employee. If there’s no resolution, then another appeal is filed with more involvement from human resources. The final step involves human resources and a senior manager to review and discuss the issue. If the issue is resolved at this level it’s considered final and binding for both parties. The company provides both the employee and manager opportunities to discuss the concern before escalating it. Most of the time the issue is resolved after the first or second steps with no further action taken. Conclusion A company’s top priority should be hiring and retaining the best employees possible. Their contributions to the financial solvency of the company are significant. The human resources department should continuously review the rewards that are available for employees who perform above and beyond the company’s expectations to make sure that the rewards are considered valuable by those receiving them. Most managers and human resources

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administrators would agree that unless absolutely necessary, disciplining or terminating an employee is undesirable but is also a part of their day to day duties. Most companies use disciplinary actions as a way to help their employee improve their performance and maintain their employment with the company. If disciplinary action is needed, the employer should make sure that they have had their policies and procedures properly vetted for any legal concerns, consider having a progressive disciplinary plan in place, and if the employee has to be terminated, some form of support system for job resources as well as any counseling needs that may arise. “Too often, termination is used as alternative to meaningful performance management or coaching. It’s an easier solution than addressing the underlying problem or finding alternative solutions” (St. John, 2016). It’s important that companies know how and when to discipline and/or terminate an employee and how important the proper documentation is in case of litigation. They should also remember that this is a person and they should be treated fairly and the process be handled as civil and quickly as possible.

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References Business Management Daily. (2018). How to fire an employee the legal way: 6 termination guidelines. Retrieved August 25, 2018, from https://training.businessmanagementdaily.com/3322/termination-guidelines-3/ Career Research. (2018). Outplacement. Retrieved August 29, 2018, from http://career.iresearchnet.com/career-development/outplacement/ Employer Services Corporation. (2017). The five step employee separation process. Retrieved August 28, 2018, from http://myesc.com/the-five-step-employee-separation-process/ Gorry, T. (2014, November 8). A step by step disciplinary procedure-from verbal warning to dismissal. Retrieved August 29, 2018, from https://employmentrightsireland.com/a-stepby-step-disciplinary-procedure-from-verbal-warning-to-dismissal/ FindLaw. (2018). Top 10 ways to retain high performers. Retrieved August 25, 2018, from https://careers.findlaw.com/law-career-management/top-10-ways-to-retain-highperformers.html Honeyman, C. (2013, April). Which dispute resolution process is best? Retrieved August 30, 2018, from https://www.beyondintractability.org/coreknowledge/best-dispute-processes The Recruiting Training Corner. (2018). Talent management strategies to retain high potential employees. Retrieved August 27, 2018, from https://hiring.monster.com/hr/hr-bestpractices/workforce-management/employee-retention-strategies/talent-managementstrategies.aspx UnitedHealth Group. (2018). Corrective action process. Retrieved August 28, 2018, from https://hub.uhg.com/policies/human-capital/workplace-policies/Corrective-ActionProcess/50

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UnitedHealth Group. (2018, May 31). Reduction in force and downsizing. Retrieved August 30, 2018, from https://hub.uhg.com/policies/human-capital/hiring-employment/ReductionForce-Downsizing/229 UnitedHealth Group. (2018, February). Rewarding results plan summary. Retrieved August 27, 2018, from https://hub.uhg.com/sites/hub/assets/HumanCapitalDocuments/Compensation/Rewarding Results-Plan.pdf ZipRecruiter. (2014, July 23). The right way to terminate an employee [Web log post]. Retrieved August 26, 2018, from https://www.ziprecruiter.com/blog/the-right-way-to-terminate-anemployee/...