Employee Termination Report: Fill & Download for Free

Why is it an injustice when the company terminates employment? Why is it career growth when employee resigns himself? There cant be two different ways to look at separation. If You don't like each other, you part ways.

Improving retention can be hard but is definitely possible. There’s a lot that goes into keeping employees engaged and thriving in an organization. I’m going to outline how I would approach any start-up struggling with retention. This is somewhat of a “checklist” but keep in mind that to implement changes and see results could take 6-12 months, if not over a year or two. So be patient and be proud that you’re taking the time to be intentional about this, not all start-ups do so you already have a better chance at success.There are a lot of ways to lay out frameworks for evaluating retention from a general list of the factors that impact retention to the chronology of the employee life cycle from recruiting to termination. I’m going to do the later with one key step up front: gathering retention metrics and setting goals.1. Set your baseline for measurement.To know if any of your efforts work, you need to know from where you are starting. Most companies measure retention via a low attrition rate. Attrition as typically defined as: TOTAL employees terminated / AVERAGE number of employees. Total employees terminated includes all voluntary and involuntary departures inclusive of all regrettable and non-regrettable terminations, basically anyone who left your company in a year counts. Average employee count is simply derived from the headcount at the beginning of the year and end of the year. If you’re small and growing quickly, this ratio can be a little noisy. I’ve seen some fancier equations to account for rapid growth but if you’re worried about retention, I think your time is better spent working on the problem than coming up with a slightly better equation.So let’s look at a simple example for a company who has gone from 60 employees to 90 employees in a year. Let’s assume they lost 20 employees in total, including a few who started and left within the same year (those count too). Their attrition rate would then be 27% (average of 60 and 90 is 75 so 20/75 = 27%). You can also back into prior years’ rates if you have the data. If the year before they went from 40 employees to 60 and had 15 people leave, their average last year was 30%.2. Set a target attrition rate.There’s a lot of debate about the “right” attrition rate amongst start-ups in Silicon Valley but frankly every company in every industry has this question as it’s critical to the success of any firm. One way to approach this is to think about how long would you ideally like people to stay at your company on average? “Forever” is not an answer and not realistic in today’s market. Look at most people’s LinkedIn profiles and you’ll typically find everything from 1 year to 7+ years at a company but pretty rarely anything outside those bands. Millennials are also staying in the same company for a much shorter tenure than the previous generation. In 2016, the U.S. Bureau of Labor Statistics reported that the average tenure of employees was 4.2 years.Given all this, let’s say you decide that on average, you think it would be great that people stay on average 4-5 years at your company. I personally have observed the Valley to be migrating to a norm of 2-3 years at one company but let’s be aspirational in our example. If you kept headcount flat, then a 4 year tenure would suggest 25% annual attrition. Of course you are probably growing so ideally you’d want to see something lower like 15-20%, but 20% could be perfectly okay and indicate you’re on track as a company.3. Clarify your mission, values, and strategy. Then attract and hire people who will love working at your company.Now that you’ve got your metrics set, let’s start looking at the lifecycle of an employee and where you can improve. One driver of retention is to make sure you’re hiring the right people in the first place. Having clarity in your recruiting process of your values and mission will help weed out people who won’t enjoy working at your company. I’m going to assume you have values that don’t discriminate against any categories protected by the EEOC.So let’s say you have a company that really values creativity and innovation which is critical to your success. Someone who needs a lot of structure and certainty probably won’t enjoy your culture and process and is more likely to leave. So define your values and incorporate them into your employer branding and recruiting process resulting in a higher % of people who will on average love working at your company and stay longer. In onboarding and throughout the year, reiterate the mission, values, and strategy again and again to make sure everyone is on the same page.4. Make sure your managers really care and enjoy leading teams.If you’re a start-up, chances are you may have had to move people into management before they felt ready, this could even include executives. To be clear, nobody feels totally ready when they become a new manager but it’s easier to do in a larger company with a ton of formal training and development. Many start-ups have virtually zero formal training and leave managers to “learn on the job” or learn from their own manager. This is a critical underinvestment and if this is your case, I’d put 80% of your time into this area alone. There is a saying backed up by some research that, “People don’t leave companies, they leave managers.” If you’ve ever had a manager who didn’t communicate well, didn’t meet with you weekly, constantly changed their direction or took credit for your work, you know how horrible that can be day to day.There’s a ton of great research on what makes great managers but my shortlist would be that they truly care about the people on their teams, they are good communicators who give direct feedback, they can set direction and achievable goals, they meet regularly with their direct reports and delegate thoughtfully based on each individual’s strengths, and they have the company’s mission as their north star. If your managers are struggling, invest time and money in training and resources. Also, consider hiring exceptional managers from the outside to take over parts of your organization and give your junior managers more support and mentorship.5. Survey for employee engagement to identify underlying issues.If you haven’t yet implemented an engagement survey, do so. This will give you very rich information to supplement what you already suspect is happening in your start-up. Make sure the survey is statistically sound (as in, don’t create your own!) so that you can compare over time and can compare to industry averages. There are a number of great tools out there. A few I’d suggest exploring are CustomInsight, CultureAmp, and TINYpulse.Run a first annual comprehensive survey but then do shorter “pulse checks” every 2-3 months while you work on improvements. Make sure the survey has open form questions and read the responses carefully. You’ll quickly identify themes that could be impacting retention. It’s important you be clear to the organization that you will take action based on the survey but it is not meant to be a tool for promotion or termination of managers. It’s a tool to make everyone better. You want managers to get honest feedback and not be afraid of the survey but actually look forward to it.6. Talk to people…..and listen.This seems simple and it is. Take a few people across random teams and set up 1:1s with them. Ask them a bunch of question like:· What was the best moment of the last week for you at work?· What was the worst moment and why?· What, if anything, is keeping you from doing your best work?· What would you be excited to be working on 6 months from now? Do you think that’s possible?· Do you feel like you understand the strategy of the company right now? Do you agree with it? If not, why not?· If you were the CEO, what would you do differently?· How is your relationship with your manager? Anything they could do to increase your impact?· What do you think we can do to keep great people at our company longer?Another form of this is to make sure you’re doing exit interviews with everyone who leaves the company in your offboarding process. You can basically ask similar questions as the above but it’s critical to ask, “Why are you leaving our company?” Ask it. Ask it even if you think you know, even if they’ve told you before. Ask them again on their last day when they are turning in their badge and computer. Interestingly, people are often much more honest in their last hours at the company than in the weeks prior. Note and document their reasons. Keep track of what people say and see if there are trends.7. Evaluate your total compensation package for competitiveness.People are often quick to jump to compensation first as the reason people join or leave a company. It’s usually not one of the top three reasons. However, you do have to be competitive. Nobody likes feeling like they are getting underpaid. To figure out your total compensation, you need to look at cash salary, any recurring cash bonus, equity value, and benefits/perks. If you’re a start-up, you’re probably not paying the same cash salary as Facebook or Google but then you’d have to make up for that gap with equity that people believe could become liquid cash at some point. Your benefits should echo your values as a company, again to attract people who will like working there.If you happen to be a start-up in the Bay Area, the reality is that housing prices are so high now that you simply cannot pay far below market on cash salary. You will have retention problems at some point. If you are worried about cash burn, then you have three options: raise more cash, hire less people, and/or become profitable (both growing revenue and cutting unnecessary costs). If you cannot do any of these things and have confidently determined that low cash compensation is the main driver of attrition, then you probably need to sell your company. You will not survive.As you can see, there’s a lot that impacts retention and this just a starting checklist. There are a lot of levers here to check and pull. It’s hard. It has be owned by everyone but ultimately the executive team and managers can often make the biggest impact on retention. The executive team has to take responsibility for setting the vision, living the values, hiring the right people, developing great leadership throughout the organization, engaging employees in the execution of the strategy, and compensating them fairly for their efforts in achieving the mission.(3rd Quoraversary pic from August 2015.)

Really its good question. Such kind of exercise is unethical to do and we can say its forced resignation. The difference between termination and resignation is belowResignation : Volunteer resigned from the current job by employees. So as per employee request they are out of company even in same day. There is no legal rights to claim severance package and no guarantee on job assurance in future. This resignation are considered as attrition and need not report in their profit and loss report in share marketTermination : Employer should notify the local labour commission about this at first and employees is eligible for severance package and other benefits. When ever company has future openings terminated employees should be considered at first. Termination employees count should be projected profit and loss report of company in share market world, which is negative entityNow, see the difference and understand why employer is forcing for resignation. Even in both the cases company is holding all the benefits and due to lack of awareness among employees.