Separation

Employees leaving the firm; either voluntarily or involuntarily.

The final stage in the HRM cycle. A firm is continually at various stages of this cycle because employees leave the firm at different times; starting the acquisition and recruitment process. The higher the staff turnover (staff being hired then leaving) the more expensive and less productive the HRM function is.

Voluntary separation: when an employees leaves the firm on their own accord. 

This can include:

• Resignation: leaving a role to pursue other opportunities

• Retirement: leaving the workforce altogether

HRM usually undertake exit interviews to determine the reasons for employee departure and make changes if required to improve employee retention.

Involuntary separation: when an employee leaves the firm due to the actions of the firm (decision not made by employee).

 This can include:

• Redundancy: when the position in the firm is no longer relevant. Perhaps due to new technology, restructuring, closure of division / outlet, or the strategic decision to exit a market. Employees made redundant are paid compensation (redundancy package—expensive for firm). Employee performance is NOT a factor in redundancy.

• Dismissal: when an employee is underperforming / committed breach in firm policy or a crime and is forced from their role (fired). HRM must ensure proper documentation and evidence is provided to minimise possibility of unfair dismissal cases against the firm.

Separation costs money! Businesses should want to retain talent to gain an edge over rivals, and to avoid the costs and hassle of recruiting a replacement and the training required to get them up to speed. Staff turnover is usually contagious - find ways to keep your staff!