In this age of social media, high profile employee exits have the potential to dominate headlines, local and global. And with an increasing number of employees making cases against former employers, businesses need to prepare for resignations.
Preparation, procedures and a willingness to hear feedback can ensure effective employee exit management.
This article will explore the risks involved with an employee’s departure and how businesses can effectively manage both amicable and negative employee exits.
Employee Exit Risk: Loss of Talent
Employee departures can be difficult to manage for any company, but particularly for SMEs. With limited resources, this loss of talent can sever an enterprise’s ability to perform.
This can damage its reputation, as a business will struggle to keep up with their workloads for their customers or clients.
Employee Exit Risk: Workplace Dynamics
By nature, workplaces large or small, rely on the teams that work on their behalf.
In other words, when an employee leaves, particularly from SMEs, remaining staff members have to take up the shortfall, leading to heavier workloads and a deterioration in workplace dynamics.
Resentment towards a company can increase, leading to higher staff turnovers. Again, this can spell trouble for small businesses, as they balance the need to meet tasks with keeping their staff content.
Managing an Amicable Employee Exit
While a hostile employee exit can be extremely difficult for a company to tackle, both during and after their departure, a cordial departure can also be a challenge.
While their exit may not be confrontational, they will have their reasons for leaving. Take measures to ensure such departures remain amicable and your relationship with former employee remains positive.
Their honest thoughts about the company, its management and processes, will help you improve your working environment for remaining and future employees.
This approach also helps you to maintain a positive relationship with the former employee, while demonstrating a commitment to improve the workplace for existing staff. This can help prevent further staff turnover, ensuring your business continues to perform.
- Exit Interviews
Such measures can ensure employees feel that their contribution to the company was valued. In turn, an employer can also improve their brand.
It is only natural that that employee will discuss their previous employment with their new colleagues, friends and family. If an employee were to feel undervalued by you as an employer, this could damage your reputation and brand with other publics.
Exit interviews will help to form lasting positive relationships between an employer and a departing employee, as well as provide a further opportunity for a business to improve their culture for remaining staff.
Managing a Negative Employee Exit
High profile, negative employee departures can severely impact an organisation, its reputation with stakeholders, and the workplace dynamics among remaining staff.
Not only can such exits damage an employer’s branding, but they have the potential to generate talent shortages as a result of higher staff turnover. Clearly a company’s ability to manage these hostile departures effectively is crucial.
While ensuring the departing employee provides feedback and received an exit interview is also crucial during more confrontational departures, an organisation must effectively plan legally for negative departures.
- Notice Periods
- Company Materials
Ensuring employees have not taken confidential data, records or materials by checking hard copy materials as well as computers, businesses can protect themselves throughout these negative departures.
- Fulfil Legal Obligations
Whether it means that all wages owed are paid efficiently, employees are aware of all required legal notices, and/or all benefit packages are met, companies can attempt to reduce the hostility of an exit, while meeting all legal obligations as an employer.
Plan Ahead for Effective Employee Exit Management
Whether an employee’ departure is amicable or not, a business can best prepare and conduct effective employee exit management by planning departure procedures ahead.
This will ensure a company can protect themselves legally, ensure that its brand or reputation is not damaged amongst internal and external publics, as well as ensure optimum performance is continued.