Employee Retention: Addressing Challenges at the Aldo Group

This report focuses on employee retention within the Aldo Group, a Canadian retailer. It examines the negative impact of layoffs and unfair promotions on employee morale and productivity. The report analyzes past approaches to address these issues and identifies their shortcomings in the context of the Aldo Group. It proposes several solutions, including outplacement support, clear layoff policies, and termination benefits, to mitigate negative attitudes and improve employee confidence. The report also considers the costs and procedures associated with implementing these solutions, emphasizing the importance of communication and financial assistance during downsizing. Furthermore, it highlights the benefits of job protection measures and the significance of addressing issues like favoritism to foster a positive corporate culture. The report aims to provide actionable recommendations for the Aldo Group to enhance employee retention and create a more supportive work environment.

Running head: RETENTION OF EMPLOYEES IN ALDO GROUP
Retention of Employees in Aldo Group
Name of the student
Name of the University
Author note

1RETENTION OF EMPLOYEES IN ALDO GROUP
Executive Summary
The primary purpose of this report is to elucidate on the background of lay off of the
employees in organization. It discusses about the problem statement and the past approaches
that have been undertaken in relation to the problem. It elaborates why the current solutions
are ineffective in relation to The Canadian retailer, Aldo Group. It also states about the costs
and the procedures pertaining to the solution of the problem in Aldo Group.

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Table of Contents
1. Introduction.........................................................................................................................3
a. Background.........................................................................................................................3
b. Problem Statement..........................................................................................................3
2. Approach to Problem..........................................................................................................3
a. Past approaches...............................................................................................................3
b. Problems with the current solutions................................................................................4
c. Proposing better solutions for Aldo Group.....................................................................5
d. Costs and Procedures for solution...................................................................................6
3. Conclusion..........................................................................................................................6
4. References...........................................................................................................................7

3RETENTION OF EMPLOYEES IN ALDO GROUP
1. Introduction
a. Background
Lay off of the individuals in a company has a great impact on the profits made by an
organization. Lays off are instrumental in creating missing link in the team that has a
detrimental effect on the running of an organization. Aldo Group is the name of a Canadian
retailer that operates chain of the shoes along with the accessories stores (Aldogroup.com.,
2018). The firings and the unfair promotions within the organization has created negative
attitude among the employees of Aldo Group. Corporate downsizing is instrumental in
causing negative effect in the workplace. Downsizing decreases the morale of the employees
and it has a negative impression on the mind-set of the workers in an organization. This
report discusses about the past approaches that have been taken by organizations to solve the
problem of lay offs. It discusses about the recent solutions that have to be ineffective for Aldo
Group. The report also suggests recommendations that can help in coping with the problem.
The report also talks about the costs and the procedures that would be required for finding the
solution to the problem.
b. Problem Statement
The firings along with unfair promotions in the Aldo Group have been instrumental in
creating negative attitude and discouragement among the workers.
2. Approach to Problem
a. Past approaches
It was found out with the help of research that previously the lay-off of an employee
was carried out on urgent basis. The employees were not provided with the right amount of
time that could help them in adjusting to the situation. This was instrumental in creating a lot
of resentment and dissatisfaction among the other employees working in an organization. The

4RETENTION OF EMPLOYEES IN ALDO GROUP
firing of an employee creates a negative attitude among the other employees of an
organization and they lose the motivation of working (Richter et al., 2016). In the past,
warnings were not given to the employees that created fear among the other employees who
were working in the same organization in which the layoff had taken place.
The incidence of sudden firing stripped a worker of his dignity and he had to leave the job
on sudden basis. The sudden exclusion of the member of a company makes the other
employees feel distressed and they feel insecure in the company (Davis, Trevor & Feng,
2015). It was gathered with the help of research that lays and the unfair promotion were
instrumental in evoking mistrust towards the management among the employees of an
organization.
The management of an organization should reward the employees who are high-
performing that can help the organization in retaining talent. It has been found out that the
companies should be careful in the allocation of monetary rewards that can prove to be
instrumental in encouraging employees within an organization. The rewards structure of an
organization should have a transparent framework that can instill positive attitude in
employees of an organization. Favouritism has a negative effect on the corporate culture
along with bottom line of an organisation. Favouritism can be manifested in the bestowing of
promotion or that of bonus on the employees of an organization (Ferrary, 2018). The subtle
indications of favouritism should be done away in an organization because it can create
frustration in the employees. There are some industries who possess culture pertaining to
favouritism on the basis of gender along with ethnicity. There are various organizations
allowing favouritism that has an effect on hiring along with promotion of the individuals and
this has negative consequences for an organization. Favouritism can pave the path for law
suits that can have severe financial consequence in relation to an organization.

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The downsizing of the organisations has become very common in the present age. In the
event of employees of an organization leaving, the other employees feel redundant and they
feel that their value has decreased in an organization. It has been found that the employees
feel unsettled at the time of downsizing. Downsizing threatens the sense of that of well-being
of the employees within an organization. The employees feel that they have been treated in an
unfair manner by the management of an organization. The survivors of downsizing become
averse to risk and they become resistance to the aspect of change in an organization. The lack
of the aspect of care at times of downsizing proves to be detrimental for employee morale in
an organization.
b. Problems with the current solutions
Presently, there are some precautions that are undertaken in relation to termination of
employees of Aldo Group. The management of Aldo Group do not inform the employee
earlier about the termination of employee that makes them unprepared when the decision is
finally taken. The employees cannot understand about their flaws and they do not get the time
to rectify the flaws that they have in relation to their working in the organization. The firing is
not carried out in a diligent manner at Aldo Group that results in losing the company along
with the trade secrets. The fired employees have the access to that of company property that
severely costs the reputation of Aldo Group (Giumetti, Schroeder & Switzer III, 2015). It
often happens that the employees who are fired have the confidential information along with
files that has harmed the prestige of the company. It has been found that the fired employee
does not return the property of the company like the credit card, keys and the pass word that
jeopardizes the future of the company.
The firing of the employees proves to be a costly action for the company as the company
has to incur loss for paying that of the legal fees. There exist state along with federal laws
that can protect the employees against the incidence of wrongful termination (Pandey, 2016).

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The employees of Aldo Group start developing negative attitude towards the company when
an employee is hurriedly laid off. It creates panic among the other workers that creates panic
among the other employees of Aldo Group in Canada.
Figure: Effect of Firing cost on the hazard rates
Source: Conference.iza.org., 2018).
It has been found that firms prefer terminating employment relationship before that of the
deadline that results into sudden hike of that of separation barrier and this can be explained
with the help of kink in that of hazard rate (Ferrary, 2018). The job protection on the other
hand can help in lowering separation rate for a large number of employed workers.

7RETENTION OF EMPLOYEES IN ALDO GROUP
Figure: Average Job Duration along with lay-off cost
Source: Conference.iza.org., 2018
The above table shows that eliminating the lay-off costs can increase expected job
duration pertaining to its value under that of French regulation. The increase in relation to job
duration can be induced by decreasing the rate of job separation at the outset of employment
spell. It has been found out with the help of research that mode pertaining to productivity
density is closer to that of threshold value under which the jobs are destroyed.
c. Proposing better solutions for Aldo Group
Unique support options should be provided to the employees of Aldo Group who are laid
off that can help in the employee in dealing with his condition. Outplacement support should
be provided by the Canadian retailer that can help the employee in dealing with his loss.
Lower cost services can also be provided that can have a positive impact on the employees of
Aldo Group (Hitka & Balážová, 2015). It can help the employees who are fired in recovering
and adjusting successfully to the loss. The new opportunities will be useful in creating a
positive impression on the mind of a laid off employee. It has been found that layoffs can
increase the stress that the employees feel and it can result in burnout of the employees. This
has been found to pave the path for greater turnover and it diminishes the willingness of the
employees for helping each other. A study that has been carried out by Morgan Franklin

8RETENTION OF EMPLOYEES IN ALDO GROUP
Consulting and Fierce CFO has stated that the fastest growing companies of the year 2014
were those who had been able to cut back on that of hiring that can pave the path for
accelerated growth of the employees of an organization. It has been found with the help of
research that the outplacement plans should not be standardized (Redman, 2016). It has been
found that personal outplacement plans can help in easing the feelings that the employees
have after they are displaced and it can help them in finding other opportunities. A report that
was carried out by US Bureau of labour Statistics in 2014 have found that only a small
percentage 61 % of the workers who had undergone displacement had been re-employed.
This evidence shows that very little effort is taken for the employees who lose their job that
harms the morale of the other employees in an organization.
The company can lay down specific rules that states the circumstances under which an
employee can be laid off. Aldo Group should establish policies pertaining to layoffs by their
action or the statements (Zailani, Aminudin & Wee, 2016). In the event of a worker having
employment contract it should be checked carefully in order to ascertain that a worker can be
laid off owing to economic reasons. Aldo Group can offer termination benefits that can help
in appeasing an employee who is being laid off. It can help in showing that Aldo Group
values the contributions of the workers. It can help in showing that the organization takes due
consideration of the welfare of its employees that can reduce negative attitude among the
employees of that of Aldo Group (Chitsaz-Isfahani & Boustani, 2014). This can help in
retaining the confidence of the other employees who are working in the organisation. This
can then help in boosting the morale of the employees of Aldo Group that can increase the
efficiency of the performance of the employees in the organization. In the event of an
employee in Aldo Group being terminated, insurance should be provided to the terminated
employees that can help them in dealing with the loss. Unemployment insurance should be
provided to the employees and financial assistance should be provided to them when they are

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looking for work. This can prove to be useful in reducing the negative attitude of the
employees and it can provide encouragement to the workers in an organization (Cummings &
Worley, 2014). Aldo Group should communicate with the employees at the times of
downsizing that can help the organisation in making progress. The communication should be
honest that can prove to be useful in dealing with the aspect of negative feelings of the
employees of an organization.
d. Costs and Procedures for solution
The cost that Aldo Group would have to bear for offering outplacement support is around
$ 10,000 for the senior executives and it should be $ 6000 for the people working in the lower
level of the administration. In the event of the company offering termination benefits it would
have to incur cost of around $ 20,000 (on annual basis). Aldo Group should contact the
outplacement supports that are in Canada that can help them in taking advantage of the
services of Aldo Group. People who are in the management of the company can attend career
events that can help them in getting in touch with the renowned outplacement support
systems that are located within Canada. Proper procedure of termination can help a company
in avoiding the legal issues. The company should lay down groundwork before they fire a
worker and it can help them in dealing with the issue of lay off.
3. Conclusion
Layoffs that are made by an organization has a great effect on the amount of profit that is
earned by an organization. The layoffs can create missing link that has a bad effect in relation
to functioning of an organization. The firings within the organization creates negative attitude
in the employees of Aldo Group. Management of the company do not inform employees
earlier regarding termination that makes the employees unprepared pertaining to the
termination of their service. Employees do not get the right amount of time to understand
flaws that hampers their working in Aldo Group. Aldo Group can lose the trade secrets in the

10RETENTION OF EMPLOYEES IN ALDO GROUP
event of the firing of the employees being carried out in arbitrary manner. Support systems
being given to employees of Aldo Group can help them in dealing with the aspect of firing.
Canadian retailer should provide outplacement support that can help employees in coping
with the situation of lay off in Aldo Group.

11RETENTION OF EMPLOYEES IN ALDO GROUP
4. References
Aldogroup.com. (2018). ALDO. Retrieved from http://www.aldogroup.com/
Chitsaz-Isfahani, A., & Boustani, H. R. (2014). Effects of talent management on employees
retention: The mediate effect of organizational trust. International Journal of
Academic Research in Economics and Management Sciences, 3(5), 114.
Conference.iza.org. (2018). The Detrimental Effect of Job Protection on Employment:
Evidence from France. Retrieved from
http://conference.iza.org/conference_files/EVAL_2018/cahuc_p73.pdf
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Davis, P. R., Trevor, C. O., & Feng, J. (2015). Creating a more quit-friendly national
workforce? Individual layoff history and voluntary turnover. Journal of Applied
Psychology, 100(5), 1434.
Ferrary, M. (2018). The structure and dynamics of the ceo's “small world” of stakeholders.
An application to industrial downsizing. Technological Forecasting and Social
Change.
Giumetti, G. W., Schroeder, A. N., & Switzer III, F. S. (2015). Forced distribution rating
systems: When does “rank and yank” lead to adverse impact?. Journal of Applied
Psychology, 100(1), 180.
Hitka, M., & Balážová, Ž. (2015). The impact of age, education and seniority on motivation
of employees. Business: Theory and practice, 16, 113.
Pandey, S. (2016). Impact of spiritual capital on work motivation among employees: an
exploratory study. International Journal of Science and Consciousness, 2(3), 42-52.

12RETENTION OF EMPLOYEES IN ALDO GROUP
Redman, T. (2016). Downsizing. In Encyclopedia of Human Resource Management. Edward
Elgar Publishing Limited.
Richter, M., König, C. J., Koppermann, C., & Schilling, M. (2016). Displaying fairness while
delivering bad news: Testing the effectiveness of organizational bad news training in
the layoff context. Journal of Applied Psychology, 101(6), 779.
Zailani, N. F. I., Aminudin, N., & Wee, H. (2016, October). Human Resource Management
(HRM) practices and employees’ retention in travel agencies. In 3rd International
Hospitality and Tourism Conference, IHTC 2016 and 2nd International Seminar on
Tourism, ISOT 2016. CRC Press/Balkema.