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Management protocols in case of employee resignations

A side from handling disciplinary action, the second most difficult, if not stressful process is how we in management handle resignations of people who are joining other organizations. After all, we’ve invested a lot in hiring, coaching, training, and all the things necessary for us to make our workers perform their job to our satisfaction. But at times, we need to accept the inevitable. With that in mind, we’ve no recourse but to accept the resignations, particularly when we can’t even afford to match the offer of another employer. Is there a certain protocol we can observe for a stress-free process? — Red Rose.

A promising young executive quit his job to join another company. Before leaving, he stopped to say goodbye and offered a firm handshake to his boss. The boss said: “I’m sorry to see you go. You’ve been like a son to me — impatient, demanding, and a bit loud.”

In this age of the so-called War on Talent, hiring, motivating, and retaining people would always be a challenge for management. This brings us to the forefront of revising the salary structure to ensure its competitiveness if only to minimize the attrition rate that often results to a seemingly endless search for qualified workers as replacements.

All of this must be done while maintaining higher labor productivity and ensuring the high morale of people who will be constrained to take up the tasks, if and when management decides to stop hiring. The situation can be made worse if management fails to handle properly the resignation of people. With this in mind, there a number of strategies you can use to reduce the impact of the workers’ resignation. These are:

WHAT TO DO
One, treat the resigning worker with dignity and respect. When people leave, maintain positive relationship with them. As soon as the resignation letter is handed to you as the manager, talk to the person and probe for the reason why they’re resigning. Even if they give you vague answers, respond without showing any emotion. Just the same, level with them about what you do and don’t know.

Two, sign to indicate acceptance of an employee’s resignation letter. Then pass the original copy of the letter with your signed marginal note “Approved” to the human resources department. This signals the start of processing the replacement and beginning the clearance process, among other things. Usually, the HR department will ask you to fill up certain forms necessary for hiring the replacement and perform other pertinent tasks.

Three, observe the “promotion from within” policy. With or without a formal system, it is advisable that you consider someone from the same department or from other departments to fill the vacancy. This hastens the transition brought about by the resignation and at the same time contributes to the morale of those who will be left behind. This makes it easy for you to have a “business as usual” atmosphere in your workplace.

Four, ask the resigned employee to complete his pending work. If not, seek his assistance in training his replacement and conduct the proper turnover of documents, supplies, and office equipment. Initiate small talk as a sort of exit interview and learn from it. Don’t prolong the agony of this exit interview as it’s best to conduct a separate “stay” interview.

Last, take the resignation as an opportunity for change. At times, you will be surprised to get new ideas from the replacement worker who is out to prove himself. It’s a situation where you can save money at the same time. If he’s qualified, give him few months to excel on the job while paying some form of a cash allowance until he proves himself worthy to the organization.

WHAT TO AVOID
One, don’t immediately accept the resignation when first informed of it. This is a bit insulting. Even if you consider it a “good riddance” situation and you’re raring to accept the voluntary termination of his employment, don’t do it while he’s in front of you. Remember, management protocols require you to preserve his dignity and self-respect.

Two, don’t prevent people from leaving even if you’re losing a talent. It’s a bad approach. And what if your resigned employee insists on leaving? That means you’ll end up in a more sorry situation than before.

Three, don’t offer a bigger package to beat the new offer. It’s a bad precedent. What if the employee accepts your offer and other employees find out, are you willing to offer the same thing to them?

Four, don’t close the door on future collaboration. In other words, don’t burn the bridge even if it gives you the best light in the dark. If you have good relationships with resigned workers, chances are, they will reciprocate by giving your company business opportunities from the new employer.

Last, don’t delay the release of clearance and terminal pay. This includes the employee’s remaining base pay, cash allowance, encashment of leaves, and pro-rated benefits. Also, issue the certificate of employment as a matter of procedure. This is a statutory requirement that your organization cannot withhold, regardless of the circumstances.

CONCLUSION
No matter how good you think you are at managing people, there will always come a time when, for one reason or another, you’ll need to deal with resignations. Sometimes, the finger of blame will be pointed toward you as the line manager, even if you don’t want to accept it.

In any event, it’s always nice to be able to take a professional stance in all of this. There’s no other way. Besides, resigned workers have already made a decision and the only thing you can do is to be positive every step of the way, even if you don’t like certain people and their behavior. You should be glad they’ve taken that step of leaving your organization.

ELBONOMICS: Don’t burn the bridge even if it gives you the best light in the dark.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Global Ferronickel downplays impact of China virus

GLOBAL Ferronickel Holdings, Inc. believes its business deals with China would not be affected by the coronavirus outbreak as its shipments of nickel ore have not begun.

Dante R. Bravo, president of the listed nickel ore miner, said in a text message Thursday he is confident Global Ferronickel will proceed with its dealings with China regarding the exportation of ore.

“We have not yet started shipping, but we believe this coronavirus outbreak in China would have no impact on the demand side,” Mr. Bravo said.

“The start of our 2020 mining season is in April and we will start shipping by then,” he added when asked if the company is implementing preventive measures with China in relation to the health hazard.

Global Ferronickel said last year it was targeting to ship 5.7 million wet metric tons (WMT) of ore to China within 2019 as it signed a contract with a unit of China Baowu Steel Group for the sale of 1 million WMT of ore.

Mr. Bravo said Thursday all revenues of Global Ferronickel come from China, but since there are no shipments in the first quarter, the novel coronavirus is not seen to have adverse financial impact on the company.

Global Ferronickel is the second-largest nickel ore producer in the Philippines. Its earnings in the first nine months of 2019 jumped 36% to P812.540 million due to an increase in shipments of its medium-grade ore, comprising 58% or 2.689 million WMT of its total production.

Shares in the company at the stock exchange were flat on Thursday at P1.51 each.

The novel coronavirus, which has led to a health emergency in China, has so far killed 170 and infected 7,711 in the country, Reuters reported yesterday.

The Philippines also claimed yesterday its first confirmed case of novel coronavirus in a 38-year old Chinese woman that arrived on Jan. 21. The Health department said she came from Wuhan and is now confined in Manila.

There are 104 confirmed cases of coronavirus everywhere else, specifically in Thailand, Japan, Hong Kong, Singapore, Taiwan, Macau, Australia, Malaysia, United States, France, South Korea, United Arab Emirates, Germany, Canada, Vietnam, Nepal, Cambodia, Sri Lanka and Finland.

While the World Health Organization is yet to declare a global health emergency on the novel coronavirus as of writing, its emergency committee is convening late Thursday, Manila time, to assess the rapid spread of the virus and make corresponding recommendations on how to manage it. — Denise A. Valdez

Your Weekend Guide (January 31, 2020)

Lucia di Lammermoor

DONIZATTI’s OPERA Lucia di Lammermoor will have performances on Jan. 31, 8 p.m., and Feb. 2, 3 p.m. at the Main Theater of the Cultural Center of the Philippines (CCP). Set in Scotland in the late 16th century, the opera is a story of politics, thwarted love, and madness, based on Sir Walter Scott’s historical novel The Bride of Lammermoor. It stars French soprano Melody Louledjian, Korean baritone Byeong-in Park, Filipino-American tenor Arthur Espiritu, and tenor Ivan Nery, with the Philippine Philharmonic Orchestra under the baton of guest conductor Alessandro Palumbo. Presented by the CCP, the Rustan’s Group of Companies, the Filipinas Opera Society Foundation, and the Embassy of Italy Manila, proceeds from the opera performances will benefit the Philippine Philharmonic Orchestra Society and the Philippine Italian Association Endowment Fund. For tickets, call the CCP Box Office at 8832-3704, or TicketWorld at 8891-9999. Free tickets will be distributed two hours before the show at the reception table at the Main Theater Lobby. For the matinee performance on Feb. 2, discounts for students will be given for Orchestra section tickets. For more information, visit www.culturalcenter.gov.ph.

1 for 3 concert

THE Solaire Resort and Casino, in cooperation with PLDT Home, presents the concert 1 for 3 on Feb. 1, 8 p.m., at the Theater at Solaire, The show features Christian Bautista, Aicelle Santos, and Mark Bautista, and is directed by Paolo Valenciano, with musical direction by Mel Villena. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

New Rules mall show

BRITISH BAND New Rules is coming to Manila this February for a series of mall shows produced by Star Events before headlining their sold-out tour in the UK and Ireland. Dubbed New Rules Live in Manila, the mall shows will be held on Feb. 1 at the Ayala Malls Circuit, and Feb. 2 at Market! Market! The shows will also feature Filipino artist Iñigo Pascual, with whom New Rules collaborated for an acoustic session last year. For more details, follow @stareventsph on Twitter and Instagram.

SmartKids fair

THE largest educational kids’ fair in the Philippines, SmartKids Asia Philippines, is back for its sixth edition, meaning another jam-packed weekend of fun for parents and children. With activities that cater to children and families, SmartKids will be held on Feb. 1 and 2, 10 a.m. to 8 p.m., at Halls 3 and 4 of the SMX Convention Center, SM Mall of Asia Complex, Pasay City.

How PSEi member stocks performed — January 30, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, January 30, 2020.

 

How does the Philippines compare in providing ‘future-skills education’ for the youth?

How does the Philippines compare in providing ‘future-skills education’ for the youth?

June seen as crunch time for power industry demand

POWER DEMAND in 2020 is expected to peak in June at around 14,191 megawatts (MW), reflecting heavy usage towards the tail end of the dry season, the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) said.

IEMOP, which operates the electricity spot market, said Thursday that new power supply that came online in 2019 will only cover the additional requirements of consumers in Luzon and the Visayas, the two parts of the country connected to the wholesale market.

In a briefing, IEMOP said supply from new power plants last year added around 810 MW to the system, just enough to cover the forecast increase in peak demand of 741 MW.

Robinson P. Descanzo, IEMOP chief operating officer and head of trading operations, said if unscheduled or forced shutdowns happen in June, power supply will barely keep up with demand.

“In actual operations, you need to allow for unexpected unplanned outages,” he said.

He said GNPower Dinginin Ltd. Co. (GNPD), a power plant project led by Aboitiz Power Corp., will come online only in June after the company gave notice of a further delay in the facility’s commercial run.

Last year, Masinloc Power Partners Co. Ltd. started operating its third unit with a capacity of 355 MW, along with San Buenaventura Power Ltd.’s 455-MW coal-fired power plant.

“Barely enough (from) Masinloc and San Buenaventura,” he said.

Mr. Descanzo said IEMOP’s forecast was based on the power development plan of the Department of Energy (DoE) covering 2016 to 2040, which estimated demand growth in Luzon and Visayas at 4.9% and 6.9%, respectively.

IEMOP issued a market demand forecast for Luzon and the Visayas where the wholesale electricity spot market operates. Electricity trading in Mindanao has yet to start.

On average, the monthly increase in demand in the two power grids is 691.3 MW, Mr. Descanzo said. This year’s projected growth rate of 5.6% is stronger than the previous year’s 4%, but below those in 2018 and 2017 at 6.4% and 5.7%, respectively.

In November, AboitizPower’s Emmanuel V. Rubio, who became the company’s president and chief executive officer this year, said the Dinginin plant, which has two identical units with a net capacity of 668 MW each, will go online with its first unit “probably earliest is April and the other unit is towards fourth quarter of 2020.”

The plant’s first unit was previously scheduled to run in October.

Earlier this month, DoE Assistant Secretary Redentor E. Delola saw demand in Luzon peaking at 12,286 MW, and those of Visayas and Mindanao at 2,419 MW and 2,278 MW, respectively.

He said peak power demand in the Visayas and Mindanao may have moved towards the dry-season months or similar to when Luzon traditionally reaches its biggest usage in a year. He added that the DoE is bracing for the possibility that the three island groups will be requiring more electricity at around the same period.

Mr. Delola said traditionally the Visayas and Mindanao registered peak demand towards the end of the year, which is favorable for the power system as the requirement is spread throughout the year. — Victor V. Saulon

Palace in possession of UP-ALI contract, poised to start review

THE President’s Legal Counsel Salvador S. Panelo said that the Palace is now in a position to review the Technohub land development deal between the University of the Philippines (UP) and Ayala Land, Inc. (ALI) after obtaining copies of the contract.

In a briefing Thursday, Mr. Panelo said that the contract between UP and ALI governing the development of the UP Ayala Land Technohub arrived at the Palace Wednesday, a week after he told reporters that President Rodrigo R. Duterte gave the green light to review the contract for allegedly onerous provisions.

Mr. Panelo said “Pinadala ng vice-president nila (It was sent by the UP vice-president). We requested it.”

Mr. Panelo said he has yet to read the contract, to validate an initial finding that the deal is disadvantageous to the government, because ALI allegedly leases the property for P20 to P22 per square meter a month.

In a disclosure earlier this month, ALI said that it is actually leasing the property at P171 per square meter. ALI first leased and developed the property in 2008 and will turn it over to UP after 25 years in 2033. The deal calls for a payment to UP of P10.23 billion.

Mr. Panelo said he will review the contract to determine whether the government is receiving less than actual value for the land, which is located on the other side of Commonwealth Avenue in Quezon City from the UP Diliman campus.

He will also seek to determine whether UP is responsible for demolition costs after the lease expires. — Gillian M. Cortez

Tax effort best in two decades amid crackdown on tax evasion, smuggling

FINANCE SECRETARY Carlos G. Dominguez III said tax revenue as a share of the economy in 2019 rose to 15.1% from 14.7% a year earlier, which he called the highest rate in over two decades.

In a speech Thursday, Mr. Dominguez said the indicator, which is known as “tax effort,” was ”the best we have achieved in 22 years.”

He said the Department of Finance (DoF) expects tax effort to improve further this year due to better tax administration and a continuing crackdown on smuggling.

“We expect the tax effort to be further reinforced this year from the better tax administration and intensified anti-smuggling drive of the government; the passage of the remaining tax reform packages; the increased dividend remittances from government-owned and controlled corporations; and a sustained campaign to crack down on errant Philippine Offshore Gaming Operators (POGO) and their service providers,” he added.

Collections from the POGO sector last year totalled P6.42 billion, up 169%.

“We expect to collect significantly more this year as we properly document and audit operations of these service providers,” he said.

The two largest tax-collecting agencies, the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC), collected a total of P2.33 trillion in taxes and duties last year, up 10.67% but 6% below target.

Finance Undersecretary and Chief Economist Gil S. Beltran said tax reform is also helping maintaining a “prudent economic policy,” under which enabled the economy is growing faster than the rate it takes on new debt.

On Wednesday, the Bureau of the Treasury (BTr) reported that the share of debt to Gross Domestic Product (GDP) continued to improve to 41.5% in 2019 from 41.8% in 2018, even though the stock of outstanding debt rose during year.

“Debt management has been very effective in minimizing the debt burden despite rising interest rates,” Mr. Beltran added. — Beatrice M. Laforga

2020 growth seen at 6.3% by Maybank Kim Eng

ECONOMIC GROWTH is expected to come in at 6.3% in 2020 amid monetary easing and following the timely approval of the budget, according to analysts from Maybank Kim Eng.

It said downside risk could come from “populist’ policies including the crackdown on some business deals.”

“Growth is expected to strengthen to 6.3% in 2020 on additional monetary policy easing plus fiscal stimulus from the higher 2020 budget, spillover of 2019 government spending, and corporate tax cuts,” Suhaimi Ilias, regional head of economic research at Maybank Kim Eng said at a briefing in Makati Thursday.

The firm’s estimate is below the 6.5-7.5% targeted by the government for 2020 and 2021.

Growth in 2019 was 5.9%, with a 6.4% performance in the fourth quarter insufficient to meet the 6% low end of the government’s target range.

Mr. Ilias said the government’s push to expand its infrastructure program by taking in more public-private partnerships will bode well for the economy.

“The higher number of PPP projects (will) catalyze the execution of infrastructure investments going forward,” he said.

He noted that the new direction of the “Build, Build, Build” program to focus on smaller projects will be beneficial to more provinces as they will get roads, bridges, and irrigation systems which were not included in the original list.

Meanwhile, Mr. Ilias said he was keeping an eye on “so-called populist policies that have affected companies and their share prices.”

“I view this differently, not necessarily negative. Maybe he is just sending a message to the companies that are bidding for PPP projects… moving forward… I believe this will eventually be resolved… (and will result in) acceptable PPP deals moving forward,” Mr. Ilias said.

President Rodrigo R. Duterte has ordered the review of “onerous contracts” that are disadvantageous to the government, including the water supply contracts for Metro Manila.

Mr. Ilias said that the economic risks from the spread of the coronavirus are likely to be short-term.

“I think one important factor right now is the constant update by relevant authorities to the cases and the measures that have been taken to contain it.”

“As opposed to SARS, there’s a global effort to find a remedy. My view right now is that it won’t be a prolonged situation,” he added.

Mr. Ilias also said that inclusive growth continues to be a challenge, noting “the stubbornly high youth unemployment rate of around 13% versus the 8% target.” — Luz Wendy T. Noble

Arabica prices seen rebounding, but set for annual decline

NONSAP VISUALS/UNSPLASH

LONDON — Arabica coffee prices will rise 14% by the end of the year, recovering some ground after falling sharply this month, though an uptick in Brazilian production will see prices end 2020 down year-on-year, a Reuters poll of 11 traders and analysts showed.

Arabica prices will end 2020 at $1.20 per pound, up 14% from Tuesday’s close, according to the median forecast of survey participants, but still 7% down from the market close at the end of 2019.

Prices have tumbled 19% so far this month, partly due to a rise in ICE exchange stocks and the prospect of a record crop in Brazil later this year.

Top producer Brazil enters an on-year in its biennial crop cycle in 2020/21 and respondents expect a crop of 66.9 million 60-kg bags, up from a median estimate of 59.0 million in the prior season.

The global supply balance is expected to swing into a surplus of 2.75 million bags in the 2020/21 season versus a deficit of 3.0 million in the prior season.

“A recovery in global production, following the hot weather in late 2019, should push the coffee market back into a surplus in 2020/21, which will add to stocks and weigh on prices,” said Caroline Bain, chief economist at Capital Economics.

Arabica prices hovered around the lowest levels in a decade for much of last year as they struggled to absorb the record 2018/19 crop. They recovered by the end of the year to hit two year highs, but have come off sharply in January.

Prices of robusta coffee, primarily used for instant coffee or added to blends as a cheaper ingredient, are seen ending the year at $1,425 a tonne, up 7% from Tuesday’s close and up 3% versus the market close at the end of 2019.

Production in Vietnam, the world’s top robusta producer, is forecast at 30.0 million bags in 2019/20, little changed from the U.S. Department of Agriculture’s estimate of 30.4 million bags for the 2018/19 season. — Reuters

OFWs warned to take precautions amid spread of China coronavirus

THE Department of Labor and Employment (DoLE) said overseas Filipino workers (OFW) to take precautions to minimize their exposure to the novel coronavirus (nCoV) after the disease spread rapidly outside of China.

In DoLE Labor Advisory No. 03 series of 2020, the DoLE said OFWs should avoid crowded places and practice hand-washing as per advice from the World Health Organization (WHO).

It said the WHO advisory also recommends avoiding contact with people suffering from respiratory conditions and to disinfect after being in contact with a sick person or visiting an environment with sick people.

It also advised against coming into close contact with farm or wild animals.

“We enjoin our OFW kababayans to immediately report suspected cases of OFWs with symptoms to hospitals and the Philippine Overseas Labor Offices (POLO) for possible assistance,” according to the advisory. — Gillian M. Cortez

Batangas danger zone not eligible for funds to repair damaged homes

BATANGAS will deny home repair funding support for all people residing within the Taal Volcano permanent danger zone, Governor Hermilando I. Mandanas said Thursday.

Mr. Mandanas was speaking at a briefing streamed on social media. He was discussing the forms of aid available, including home repair funds, when he made an exception of residents within the volcano’s danger zone.

Bibigyan natin hindi lamang pagkain, bibigyan pa rin natin ng cash, para mabilis ang pag re-repair ng bahay. Bibigyan lang natin ng pang repair eh syempre yung mga taong outside of the permanent danger zone. Pag namigay tayo ng cash para sa pagpapagawa ng kanilang bahay ano, ay pag pumutok yan, eh di sira na ulit (We will give out food and cash for speedy home repairs. Of course we will give out home-repair money to those outside the permanent danger zone. If we give out cash for home repairs and the volcano erupts, then these homes will be wrecked again),” Mr. Mandanas said.

Taal’s permanent danger zone includes the entire Volcano Island, according to the website of the Philippine Institute of Volcanology and Seismology (Phivolcs).

More than 124,000 families in Batangas, Quezon, Laguna and Cavite were affected by the Taal Volcano’s ejection of ash starting Jan. 12, disaster managers said in their daily report.

About 19,000 families are taking temporary shelter in 415 evacuation centers while 60,538 are being served outside these centers, they said.

Taal Volcano continues to emit “white to dirty white steam-laden plumes” which rose as high as 500 meters, Phivolcs said in its 8 a.m. update Thursday.

Sulfur dioxide emissions are currently at levels which are “below instrumental detection.”

Phivolcs also recorded 763 earthquakes since the Jan. 12 eruption, 177 of which were measured at intensities of between 1 and 5.

Taal was downgraded to Alert Level 3 on Jan. 26, signifying a “decreased tendency towards hazardous eruption.” The previous alert level was 4, indicating the possibility of an imminent hazardous eruption.

The Philippine National Police said it is winding down its emergency deployments to the Taal region on President Rodrigo R. Duterte’s orders.

The PNP’s spokesman, Bernard M. Banac, a Brigadier General, said Wednesday in a briefing streamed on social media: “Sila ngayon ay nakabalik na sa ating headquarters dito sa Kampo Krame (The deployed personnel have returned to the Camp Crame headquarters).”

He said the deployed PNP personnel were from the Reactionary Standby Support Force (RSSF), and will undergo medical examination for lung conditions. — Genshen L. Espedido