This chapter covers the concepts of outplacement, downsizing, and employee separation. In today’s business world, more than ever before, there is an everpresent fear of downsizing, termination, or loss of high-performing talent. These situations, in combination with many others, make up the set of forms of employee separation. An employee separation occurs when an employee ceases to be a member of an organization. The rate of employee separations in an organization, also known as the turnover rate, is a measure of the rate at which employees leave the firm.
After completing this chapter, the student should be able to
1. Understand the cost of employee separation.