7 Ways To Handle Employee Exits The Right Way

Companies these days are putting a lot of emphasis on giving their employees a positive experience, right down to the way they exit. It's a detail that's becoming increasingly important.

Just like wrapping up a conversation on a good note is as crucial as the discussion itself, the way you end a professional stint holds just as much weight as the work you put in. It shapes how people remember the whole journey.

In HR worldwide, there's a big challenge with not having enough skilled people and lots of folks deciding to move on. For many, having a job for life isn't the main goal anymore.

30% of new hires bid farewell within the first 90 days. The reasons behind these departures are quite straightforward: 43% express that the role didn't meet their expectations, 34% cite specific incidents, and 32% find the company culture not to be a good fit.

It’s clear from this that company culture matters more than a long-term commitment for a good chunk of employees.

You've probably heard the advice to "plan for exits from day one" in a company, and with the current scenario, there is a truth to it. But let's be clear, it doesn't mean you should start thinking about how someone will leave the day they start!

It's more about seeing the big picture and understanding that every professional journey has a beginning and an end.

When we bid farewell to colleagues, it's not just a goodbye. It's an open door to future collaboration in various capacities. Former coworkers can become valuable partners, clients, or mentors down the line.

Conversely, if we don't manage goodbyes with care, it can lead to missed chances and strained professional connections.

A staggering 86% of prospective employees delve into company reviews and ratings before even considering a job application.

Candidates seek an unfiltered perspective, desiring to understand the work environment through the lens of current and former employees' experiences.

So you best believe that how you handle an exit is crucial. A few bad experiences, inevitably leading to a few negative reviews can be detrimental to companies looking to hire top talent.

That's why having a basic set of rules for exits is so crucial. It's like a guide that ensures farewells happen smoothly, leaving a good impression even after someone's left.

The core issue with exits

The thing about exits is, they straddle two different worlds. On one side, there's the formal, legal aspect - the employment contract. When that contract wraps up, so does the official tie with the organization.

But there's another side, often overlooked. We join a job hoping for more than just a paycheck. We're after connection, shared values, and room to grow. Over time, we make friends, hold onto important lessons, and create memories.

From a paperwork perspective, it's done and dusted once the contract ends. However, on what's often dismissed as the "softer" side of things, a whole new chapter of our journey in the workplace begins.

Addressing commonly misinterpreted exit situations

There are a few scenarios that often present challenges due to misinterpretations. These situations, if not handled with care and insight, can lead to unintended consequences.

Each of these scenarios requires a unique approach, grounded in understanding the nuances and respecting the individuals involved.

Surprise departure of high-performers

When high-performing employees unexpectedly decide to move on, it's a scenario that can present challenges for organizations. These individuals often play pivotal roles and contribute significantly to the organization's success.

This is a delicate situation for a few reasons.

• Key contributor disruption : The sudden departure of a high-performing employee can disrupt projects, teams, and even the overall dynamic of the organization. Their absence may leave critical roles unfilled, affecting productivity and outcomes.
• Knowledge gap: High-performers often possess specialized knowledge or skills that might not be easily replaceable. The loss of this expertise can lead to challenges in maintaining the same level of performance in affected areas.
• Impact on morale: The departure of a high-performing colleague can have an emotional impact on the team. It may lead to feelings of uncertainty or concern about the stability and direction of the organization.
• Client or stakeholder concerns: If the departing employee has strong client or stakeholder relationships, their exit could raise concerns among these external parties. Ensuring a smooth transition of these relationships becomes crucial.

The unexpected nature of the departure combined with the potential impact on the organization often leads to hurried or ad-hoc responses. Organizations may not have clear protocols in place for such scenarios, resulting in a less-than-optimal handling of the situation.

Involuntary exits

In cases of involuntary departures, leaders need to exercise extra care and ensure confidentiality. This is essential to show respect for individuals' emotions and dignity during what can be a challenging time.

Here’s why this situation is often misinterpreted.

• Emotional impact: Involuntary exits can be emotionally fraught for the departing employee. It's important to handle the situation delicately to minimize distress and anxiety.
• Reputation management: Mishandling involuntary exits can tarnish an organization's reputation, both internally and externally. It may erode trust among remaining employees and potentially harm the organization's image in the industry.
• Legal implications: Mishandling involuntary exits can lead to legal repercussions, including potential lawsuits or damage to the organization's standing in the eyes of labor boards or regulatory bodies.

The emotional and legal complexities of involuntary exits often make organizations hesitant or unsure about how to handle them. This can result in a lack of a clear process, leading to missteps in communication and support for the departing employee.

Extended notice periods during transitions

During times of significant organizational change, managing notice periods can be a sensitive issue. Prolonged notice periods can sometimes unintentionally sideline employees who are in the midst of important career transitions.

A situation like this requires special attention for the following reasons.

• Uncertainty and anxiety: Employees facing organizational changes may already be experiencing heightened levels of uncertainty and anxiety. Lengthening their notice period can exacerbate these feelings, potentially leading to decreased productivity and engagement.
• Impact on team dynamics: Extended notice periods can disrupt team dynamics. Colleagues may need more certainty about their future roles and responsibilities, affecting their own performance.
• Risk of attrition: Prolonged notice periods might lead to voluntary departures of employees who feel uneasy about the changes or perceive a lack of future opportunities within the organization.

Organizations may not fully grasp the potential negative implications of extended notice periods during times of change. In an attempt to maintain continuity, they might inadvertently create a more challenging environment for affected employees.

How organizations can execute employee exits well

When it comes to facilitating employee exits, organizations have the opportunity to do so in a way that not only respects the departing individual but also benefits the company as a whole.

Here are some key employee exit best practices for executing them effectively.

Communicate openly and honestly

You've probably heard it before, but it's worth emphasizing - communication is everything. When someone decides to move on, it's a chance for the company to learn and grow. Take a moment to reflect on existing policies and procedures.

Are there areas that could be more supportive? Maybe it's the notice period or the documentation process. These little things can make a big difference.

Think of it like having an open-door policy. When employees feel comfortable expressing their intentions to depart, it opens up opportunities for improvement.

It's a chance to listen and understand their experience, and perhaps even uncover blind spots in company policies.

Plus, it ensures everyone is on the same page about notice periods, which can avoid any last-minute scrambles.

Align expectations by asking

When someone's leaving, it's crucial to have a clear plan. Start by sitting down and aligning on the timeline.

What's the end date that works for both parties? What tasks or projects need to be wrapped up before they go?

This ensures a smooth handover and keeps things running like a well-oiled machine.

Imagine it as passing the baton in a relay race. You want to make sure there's a seamless transition, so nothing drops along the way. By aligning on expectations, you're setting the stage for a successful handoff.

It's not just about tasks, but also about knowledge transfer and ensuring the incoming person is set up for success.

Create a supportive environment

Leaving an organization is a moment of change and transition. So, how do you handle it? The key is to do it with empathy and respect.

Treat departing employees with the same level of professionalism as when they first joined. Create an atmosphere where they feel valued, even as they're leaving. It's about showing that the company cares, no matter the circumstance.

You want to leave a positive impression, and that starts with how you handle the exit. Express gratitude for their contributions and acknowledge their journey.

Provide resources or contacts for their future endeavors. It's a way of saying, "We appreciate you, and we're here to support you on your next adventure."

Acknowledge and manage emotions

There might be a mix of feelings, from excitement to sadness. It's important to acknowledge and manage these emotions.

Encourage departing employees to recognize what they're feeling. This self-awareness is a powerful tool in navigating this transition.

And as for you as the employer, avoid expressing strong negative emotions. It's about finding a constructive way forward.

This needs to be a heart-to-heart conversation. By acknowledging and addressing emotions, you're creating a space for honesty and authenticity.

It's perfectly normal for both parties to feel a range of emotions during such a significant moment. This acknowledgment helps both navigate the process with empathy and understanding.

Depersonalize departures

Here's a perspective shift - departures are not a judgment of personal worth. Sometimes, employees leave for reasons that have nothing to do with the organization.

It could be a better opportunity or a personal choice. Understanding this helps depersonalize the decision. It's not about you or the company; it's about the individual's journey.

Imagine it as taking a step back for a broader view. When you understand that departures are part of everyone's career journey, it changes the narrative.

It's not a reflection of the company's value or the individual's worth. This perspective shift can lead to a more constructive and forward-thinking approach to the exit process.

Cultivate a ‘curiosity & growth’ mindset

Approach the exit conversation with a genuine interest in the departing employee's future. Ask about their plans and what led to this decision. This curiosity isn't just about this moment; it's about learning and growing for the future.

And don't be afraid to explore what could have influenced them to stay. It's a chance to gather valuable feedback for retention efforts down the road.

By showing this interest, you're not only learning about their next steps, but you're also gaining insights into the organization's growth. It's a two-way street of understanding and learning.

Be prepared with a plan for future exits

Proactive succession planning is like having a safety net for unexpected departures. It's not just about filling a gap; it's about strengthening the entire leadership pipeline.

This strategic approach ensures that departures are managed with foresight and minimal disruption.

Here are a few ideas that you can have in place for such a situation.

• Succession planning: Identify and groom potential successors for key roles within the organization. This strategic approach ensures that there's a clear roadmap for a seamless transition in case of unexpected resignations.
• Skill transfer workshops: Regular workshops and training sessions facilitate the transfer of specialized knowledge and skills from departing employees to their successors. This ensures that critical expertise isn't lost in the transition.
• Mentorship programs: Establish mentorship initiatives that connect departing employees with successors. This not only aids in knowledge transfer but also fosters a sense of continuity and support within the team.
• Documentation protocols: Implement robust documentation practices to ensure that critical processes, projects, and client interactions are well-documented. This safeguards against information loss during transitions.
• Employee offboarding swag: Provide departing employees with thoughtful offboarding kits and swag. These kits may include personalized tokens of appreciation, mementos, or resources relevant to their professional growth. This gesture not only leaves a positive lasting impression but also contributes to a culture of gratitude and respect.

A well-prepared plan for future exits is more than just a contingency. It is an investment in the long-term stability and success of the organization. It's a forward-thinking approach that ensures that the organization continues to thrive, even in the face of change.