Companies invest considerable time and effort into creating positive first impressions for new hires. While ensuring a great day-one experience is essential, an employee’s last impression—how they are treated during their exit—often has a more lasting impact. Treating departing staff with the same respect and consideration as new hires is crucial. Implementing thoughtful offboarding policies and practices can help maintain a positive relationship with valued employees who have chosen to leave.
The Importance of a Positive Exit Experience
According to the Bureau of Labor Statistics, individuals in their 50s and 60s have held an average of 12 different jobs throughout their lifetimes. Every departure, whether voluntary or involuntary, leaves an impression that employees will share with others, both in person and on social media. These shared experiences can influence candidate referrals, the employer brand, and the likelihood of former employees returning to the company, known as “boomerang employees.”Harvard Business Review reports that more than a quarter of all new hires today are boomerang employees. This phenomenon offers a unique opportunity for companies, as former employees can represent a strong, known talent base. Employees who depart with a positive exit experience are more likely to return, bringing with them valuable skills and insights.
Voluntary vs. Involuntary Terminations
Voluntary Termination
A voluntary termination occurs when an employee submits a notice of resignation or retirement. When possible, the employee should provide written notification. To mitigate the loss of institutional knowledge, it’s essential to have strategies in place to transfer the knowledge of departing employees to others within the organization.
Involuntary Termination
An involuntary termination, such as a termination for cause, a layoff or reduction in workforce, is a management-initiated dismissal. Before proceeding with an involuntary termination, managers should review the situation with Human Resources and, often, with legal counsel. Keeping thorough documentation of the reasons for the termination or the criteria for workforce reduction is critical. Prepare in advance for the discharge conversation, including having two people deliver the message and having options for how the employee will collect any personal belongings. No matter the reason for separation, it is important to treat each employee with dignity and respect.
Essential Offboarding Steps
A comprehensive offboarding plan should include several key steps:
- Prepare Separation Notices: Document the terms of the separation.
- Turn Off Access: Disable the employee’s email and building access.
- Collect Company Property: Ensure all company equipment is returned.
- Verify Contact Information: Confirm the departing employee’s contact details.
- Update HRIS System and Files: Ensure all employee records are current.
- Communicate the Termination: Inform the appropriate staff, customers, and payroll.
- Exit Interview: Give the employee an opportunity to provide feedback on their employment.
An exit checklist can help ensure no steps are overlooked. aHRrow has created exit checklists for clients, providing peace of mind that all necessary actions are covered.
The Exit Interview
The exit interview is the cornerstone of the offboarding process. Whether conducted online or face-to-face, exit interviews offer invaluable insights into why employees are leaving and what the company could improve. This feedback can drive actionable changes that enhance company processes and procedures. aHRrow can develop tailored exit interview questionnaires to uncover the most relevant information for your organization.
Preparing an exit letter with information about the employee’s last paycheck, benefits expiration, and COBRA paperwork is also important. aHRrow provides templates to help clients craft these letters effectively.
The employment relationship is valuable throughout the entire lifecycle of an employee. By adopting effective offboarding practices, companies can ensure that departing employees leave with a positive impression, maintaining a strong employer brand and the potential for future re-engagement. For assistance in redefining your exit process, reach out to an aHRrow team member today.