Saying Goodbye: The HR Guide to Offboarding
It’s an unavoidable fact of employment that employees can and will leave the organization. Lifetime employment at one employer is increasingly rare, especially among the younger cohort of employees as they seek greener pastures.
Across OECD countries, the average job tenure has declined by around 8% between 2012 and 2019 across all age groups. While it’s unclear how the COVID-19 pandemic has affected job tenure, the recent phenomenon of the Great Resignation shows that labour mobility is likely to increase in the coming years.
As a result, having a systematic, formal process for when an employee resigns is important for HR departments. This process is known as employee offboarding.
What is Employee Offboarding?
Understanding the Importance of Offboarding
Employee offboarding refers to the process of formally separating an employee from the organization. Just as onboarding sets the tone for an employee's tenure, offboarding shapes their lasting impression of the company. A well-managed offboarding process can lead to positive recommendations, reduce legal risks, and maintain positive relationships.
Benefits of a Structured Offboarding Process
- Positive employer brand: A well-handled offboarding process leaves a positive impression on departing employees, enhancing your company's reputation.
- Knowledge transfer: Structured offboarding ensures the transfer of critical knowledge and tasks to remaining team members.
- Risk mitigation: Proper offboarding helps manage legal, security, and compliance risks associated with employee departure.
- Alumni engagement: Maintaining a connection with former employees can lead to future business opportunities and referrals.
- Employee morale: An organized offboarding process demonstrates respect for departing employees and can boost overall morale.
Pre-Offboarding Preparation
Communication and Coordination
Notify relevant departments (IT, finance, etc.) about the impending departure. Coordinate with managers to ensure a smooth transition plan.
Documentation Review
Gather and review all necessary documents, such as contracts, non-disclosure agreements, and benefits information. If you have all the information on a digital employee file, this will make the process easier.
Exit Interview Planning
Plan for an exit interview to gather feedback from the departing employee. This is an opportunity to learn about their experiences and identify areas for improvement.
The Offboarding Process
Exit Interviews
Conduct thorough and confidential exit interviews to gather insights into the employee's reasons for leaving, their experiences, and suggestions for improvement.
Return of Company Property
Collect all company-owned property, including laptops, access cards, and any other assets issued to the employee.
Knowledge Transfer
Ensure the departing employee transfers their knowledge and responsibilities to relevant team members. Document critical processes and projects for a smooth transition.
Account and Access Termination
Revoke access to company systems and accounts promptly to safeguard sensitive information.
Benefits and Final Compensation
Explain the process for accessing final paychecks, benefits continuation, and any other relevant financial matters.
Legal and Compliance Procedures
Ensure compliance with legal requirements, including non-compete agreements, intellectual property protection, and data privacy regulations.
Maintaining Relationships
Providing References
Offer to provide positive references for departing employees, maintaining professionalism and focusing on their strengths.
Alumni Network Engagement
Encourage departing employees to join the company's alumni network. Engaging with former employees can lead to business opportunities and valuable insights.
Employee Offboarding Best Practices
- Clear communication: Keep employees informed at each step of the offboarding process to reduce confusion and stress.
- Respect and sensitivity: Treat departing employees with respect and sensitivity, acknowledging their contributions.
- Knowledge retention: Ensure essential knowledge is transferred and documented for a smooth transition.
- Compliance with regulations: Adhere to legal and compliance requirements to avoid legal complications.
A successful offboarding process contributes to a positive work environment, a strong employer brand, and smoother transitions for all parties involved. By following these guidelines and tailoring them to your company's specific needs, you can ensure a respectful and efficient employee offboarding experience.
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It’s an unavoidable fact of employment that employees can and will leave the company. Lifetime employment at one employer is increasingly rare, especially among the younger cohort of employees as they seek greener pastures.
Across OECD countries, the average job tenure has declined by around 8% between 2012 and 2019 across all age groups. While it’s unclear how the COVID-19 pandemic has affected job tenure, the recent phenomenon of the Great Resignation shows that labour mobility is still high.
As a result, having a systematic, formal process for when an employee resigns is important for HR departments. This process is known as employee offboarding.
What is Employee Offboarding?
Understanding the Importance of Offboarding
Employee offboarding refers to the process of formally separating an employee from the organization. Just as onboarding sets the tone for an employee’s tenure, offboarding shapes their lasting impression of the company. A well-managed offboarding process can lead to positive recommendations, reduce legal risks, and maintain positive relationships.
Benefits of a Structured Offboarding Process
- Positive employer brand: A well-handled offboarding process leaves a positive impression on departing employees, enhancing your company’s reputation.
- Knowledge transfer: Structured offboarding ensures the transfer of critical knowledge and tasks to remaining team members.
- Risk mitigation: Proper offboarding helps manage legal, security, and compliance risks associated with employee departure.
- Alumni engagement: Maintaining a connection with former employees can lead to future business opportunities and referrals.
- Employee morale: An organized offboarding process demonstrates respect for departing employees and can boost overall morale.
Pre-Offboarding Preparation
Communication and Coordination
Notify relevant departments (IT, finance, etc.) about the impending departure. Coordinate with managers to ensure a smooth transition plan.
Documentation Review
Gather and review all necessary documents, such as contracts, non-disclosure agreements, and benefits information. If you have all the information on a digital employee file, this will make the process easier.
Exit Interview Planning
Plan for an exit interview to gather feedback from the departing employee. This is an opportunity to learn about their experiences and identify areas for improvement.
The Offboarding Process
Exit Interviews
Conduct thorough and confidential exit interviews to gather insights into the employee’s reasons for leaving, their experiences, and suggestions for improvement.
Return of Company Property
Collect all company-owned property, including laptops, access cards, and any other assets issued to the employee.
Knowledge Transfer
Ensure the departing employee transfers their knowledge and responsibilities to relevant team members. Document critical processes and projects for a smooth transition.
Account and Access Termination
Revoke access to company systems and accounts promptly to safeguard sensitive information.
Benefits and Final Compensation
Explain the process for accessing final paychecks, benefits continuation, and any other relevant financial matters.
Legal and Compliance Procedures
Ensure compliance with legal requirements, including non-compete agreements, intellectual property protection, and data privacy regulations.
Maintaining Relationships
Providing References
Offer to provide positive references for departing employees, maintaining professionalism and focusing on their strengths.
Alumni Network Engagement
Encourage departing employees to join the company’s alumni network. Engaging with former employees can lead to business opportunities and valuable insights.
Employee Offboarding Best Practices
- Clear communication: Keep employees informed at each step of the offboarding process to reduce confusion and stress.
- Respect and sensitivity: Treat departing employees with respect and sensitivity, acknowledging their contributions.
- Knowledge retention: Ensure essential knowledge is transferred and documented for a smooth transition.
- Compliance with regulations: Adhere to legal and compliance requirements to avoid legal complications.
A successful offboarding process contributes to a positive work environment, a strong employer brand, and smoother transitions for all parties involved. By following these guidelines and tailoring them to your company’s specific needs, you can ensure a respectful and efficient employee offboarding experience.
