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HR Management

7 Steps to Better Manage Employee Departures

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No matter what business you run, the time will eventually come when an employee decides to leave (or you kick them out). Unfortunately, this process can sometimes be delicate. You have to follow legal and organizational protocols to get rid of them. 

That’s where this post can help. It looks through the various steps you need to take before someone exits your employment and what you can do to best protect yourself from any potential blowback. 

Wait for Formal Resignation

The simplest approach is to simply wait for the employee to offer you their formal resignation. Ideally, you want this in written form (usually an email or letter). It should state their last working day and acknowledge any notice period. 

If the employee is under contract, they have to fulfill their notice period. This timing can be as short as a week but is a month for most roles. This gives you time to find a suitable replacement or shift around your internal structure to better represent your firm’s needs. 

Communicate with Stakeholders

Once you decide to let someone go, the next step is to communicate with relevant stakeholders. These can be other workers, managers, partners, and customers. 

Talking to stakeholders keeps everyone in the loop and helps to maintain accountability in hiring departments. It lets you mobilize the entire team, helping to adjust to the new reality if a key person leaves. 

Start Planning for the Transition

During this process, it helps to plan for the transition. Working out what’s going to happen next is essential for managing the departure of a colleague. 

If the transition is something you planned from the outset, this step should be more straightforward. However, if it is something that the worker initiated, then you will need to pull on your resources to react effectively. 

The first step is to work out what the employee does. Noting their responsibilities and ongoing projects can help you find out whether they are worth replacing and if so, what you need other people to do in their stead. 

The next step is to find someone to perform a temporary cover. This part of the process is more essential in some roles than in others. 

The last step is to think about how you will manage the employment of a new person. Do you need the same role or could you get in someone cheaper to simply cover the missing tasks and then transfer another member of your team for the more responsible roles? 

Conduct the Exit Interview

Sometimes, it’s helpful to conduct an exit interview. This process lets you learn more about the employee’s experience and whether their leaving you is your fault (which isn’t always something your team wants to consider). Learning more about what you might have gotten wrong can be an excellent way to improve your corporate brand and boost morale and productivity in the office. It also assists you with employee retention efforts in the future so you don’t wind up spending a small fortune on recruitment drives. 

Recover Company Property

A slightly more challenging step is recovering company property, a part of departing employee defense. The idea is to stop them from taking things you own with them, allowing you to reuse them and protect your intellectual property. 

Start by ensuring they return their keycards, laptops, and company clothing. Make sure returning these items is part of their contract. 

Then, check that they no longer have access to critical company information. You want to ensure they can’t take it with them to a competitor. 

If you can, disable their email address and access to company data properties. Don’t allow them into your databases after they leave you. 

Settle Pay 

After you are sure you are safe, you can settle any remaining pay with them. Providing them with accrued leave and bonuses helps them part you on positive terms and reduces your risks further. 

In some cases, you may need to provide them with continuing health benefits and retirement plans. Confirm these in writing with them so that everyone knows where they stand long-term, post-employment. 

Update the Authorities

The final step is to update your records and send these details to the authorities. Telling the tax office an employee no longer works for you means they are less likely to pester you for payments. 

Make sure you remove the employee from your payroll and benefits systems. Don’t accidentally forward them a salary if they haven’t worked for it. Finally, tell your team about the departure and who will handle the new responsibilities.  

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