The employee offboarding process is an often overlooked part of the employee life cycle. It’s important to remember that in order for a company to achieve success, it must have a strong foundation. The most important piece of this foundation?
An offboarding checklist ensures that all necessary actions are taken as soon as an employee leaves your organization – saving time and avoiding errors. In this blog post, we will go over a checklist of the offboarding process. You will learn what offboarding is, why it’s important, and the benefits of proper offboarding for your organization.
How do you Offboard Someone? – The Offboarding Process
HR must complete an employee offboarding checklist to ensure everything is done right.
Just missing one item can result in severe consequences. Thus, follow all procedures to ensure an effective offboarding process.
1. Inform Co-Workers
Inform coworkers before the employee offboarding process begins.
Here’s what to do:
- Send an email or verbally notify coworkers
- Notify external contacts
2. Fill in Required Legal Documents
There are non-disclosure and non-compete agreements, and there are tax documents that you must complete in time. The checklist includes financial, 401(k), health care information, and a resignation letter. Here are instructions to fill out the legal documents:
- Payroll and Other Paperwork. The paperwork includes the company 401(k), insurance, and benefits information to process any withdrawals or rollover plans.
- Update Payroll System. Update the company’s payroll system with the employee termination date.
- Discuss the Former Employee’s Last Paycheck. This should include a payout for unused vacation days or an employee severance package. It also includes what the company will do with the employee’s accrued vacation days.
- Have the Employee Sign the Letter of Termination. Signing the letter confirms that they have received it for legal purposes.
- Sign Non-Disclosure Forms. Verify their agreement to the terms before they leave.
3. Recover Company Assets
Many companies fail to recover assets that belong to them, such as laptops, mobile phones, and even equipment, when employees leave. Research has shown that employee theft within the US costs businesses up to $50 million per year.
Here’s a list of company property that a departing employee should return:
- Laptops and computer bags
- Cell phones
- Departing employees’ IDs and access badges
- Parking passes
- Company vehicles
4. Get in Touch With IT Team
The IT team needs to disable IT access related to the leaver to ensure nobody else can access their PC or other information after they leave. It is also quite common to add an “out of office” message or automatic redirection to the email account for a short period before closing it down to ensure that important emails from clients aren’t missed.
The IT team needs to undertake a process to remove IT access to the user’s PC and other information from their account, such as:
- Network and computer login access
- Email, phone conference, and instant messaging accounts
- Third-party software passwords (access to critical company systems, company website Intranet, Salesforce, Marketo, Website CMS, and Analytics)
- Access to sensitive company documents
5. Arrange the Exit Interview
A crucial step of the offboarding process is the exit interview. This is a final opportunity to talk with your employees and get their feedback about what worked, what didn’t work, and how you can improve what they were not satisfied with.
Exit interviews are also an opportunity for employees to advise on things such as company culture or processes, which will help improve the future employees’ experience. The exit interview might encompass the following:
- Obtain feedback. Feedback is an essential part of the offboarding process. Don’t be surprised to hear why an employee is leaving, and address any concerns or issues they may have had in the employee lifecycle.
- Ask where the company can improve. There is always room for improvement, so it is beneficial for both parties to ask about areas of the company that require improvement.
- Discuss if the employees have complete support and resources. Find out if an employee was happy with their work environment and had enough support.
- Determine the employee’s relationship with the manager. Ask questions: How did the employee feel about their manager? How did the employee communicate with their manager? Was the employee happy with how they communicated with their manager?
Some employees might not feel fulfilled by their jobs. This is an excellent time to determine what aspects of their position they did or didn’t like and find out why it made them unhappy, especially if this involves their manager.
- Ask what you can do to make them stay. This is important because there is a chance that employees will leave for the wrong reasons.During the interview, ask questions like What would have made them stay? What did they like about their job? What were they looking forward to?
Companies may often not even know what steps they need to take to keep their employees happy. It’s a good idea to find out and then make changes if required. The employee can be satisfied with some aspects of the position but not others. If the employee was excited about something that would happen in their position, this could be planned for and delivered to help keep them around longer.
- Try to keep the door open for valued employees. It’s always a good idea to have former employees come back to the company in some capacity, whether they are just volunteering on a one-time basis or if you have a position that needs filling.
It is important for an employee who has been with a company for any amount of time not to feel like their job is disposable. They need to take the steps necessary to ensure they are offboarding in the right way.
6. Leaving the Position Ready for the New Employee to Take Over
This is a big one. Although it may sound like common sense, the person in charge of offboarding should ensure they are leaving their position ready for a new employee to take on without any bumps or hiccups. This includes updating passwords and information about workflows so that everything is smooth sailing for incoming employees.
Address the following:
- Prioritized documentation of routine tasks, with step-by-step instructions if needed
- Status updates on current and planned projects
- Have existing employees train coworkers on how to do those tasks
- Handoff access to files or systems
- Obtain a list of contacts in and outside of the organization
7. Show Appreciation to the Employee
Offloading an employee is not always a negative or stressful experience. Employees should feel appreciated for their contributions and hard work while with the company.
You can assure a good employee experience by thanking them, taking them out for lunch, rewarding them in some way (perhaps through a gift card), etc., or you can appreciate them in person, over the phone, or via email.
8. Recommend Outplacement Services
This is the last step of the offboarding process. The company can recommend outplacement services to help its employees find new jobs after they are let go.
Offloading is an important part of ensuring that employees don’t feel as if they were left in the dark when you terminate them from their position, and it helps them transition into retirement with dignity.
Many companies find this process so successful that they offload employees retiring or transitioning into different positions.
Offboarding is not just about check-marking every step in the employee’s departure process; it’s also about ensuring they feel valued and appreciated for what they’ve contributed during their tenure.
What is Offboarding?
Offboarding is the process of transitioning employees out of an organization. The separation is due to retirement, resignation, or termination. An organized offboarding process should occur whether the employee leaves voluntarily or involuntarily.
The company should aim at offboarding so you don’t reach out to a former employer or employee after they have left, or worse—get sued! You should aim to have your offboarding done properly.
Offboarding vs. Onboarding
An employee will undergo an offboarding process when they leave their current company while they are undergoing an onboarding process when joining a company.
On-boarders are already aware of all the necessary steps and procedures for their future work with that company before beginning any off-the-job training or orientation.
This includes job interviews, screening (background checks), employment contracts, sign-on bonuses/sign-up incentives (i.e. what you get offered as soon as you join), and other customary offers such as health benefits & 401k programs.
If you’re here to increase your knowledge on technical HR terms like offboarding, onboarding, employee retention, and more, then don’t forget to check out these top-rated HR certifications:
What Challenges You Might Face in the Offboarding Process?
The most common challenge is that offboarding can take time to complete, which is difficult for smaller businesses or companies experiencing rapid growth if they don’t have enough resources on staff at one time.
- A lack of communication and/or training for employees may also lead to a reluctance on the part of an employee to leave.
- Employees not taken care of in their offboarding process often experience feelings such as anger, resentment, or regret that can harm productivity.
- Poor communication with former colleagues is also common, as employees may not feel welcomed back to work.
- Employees who experience a reduction in salary or benefits often feel resentful and become less productive, which is detrimental for small businesses with limited resources.
Offboarding Best Practices: Conclusion
Best practices for offboarding involve covering paperwork and administrative details. But they are also about using the offboarding process to improve your company’s culture. Offboarding is a great way to get your company on the ground and ensure it’s on the right track.
We hope this helps you with your employee offboarding procedure and wish you luck in completing this important task.
FAQs
Here are the most frequently asked questions about offboarding.
What is offboarding, and why is it important?
Offboarding refers to the structured process of transitioning a departing employee out of an organization. It involves various steps, such as knowledge transfer, exit interviews, and ensuring compliance with HR policies. Proper offboarding ensures a smooth transition, helps retain valuable institutional knowledge, and leaves departing employees with a positive impression of the company.
How can we ensure a smooth offboarding process for departing employees?
To ensure a smooth offboarding process, start by creating a checklist that includes tasks like retrieving company assets, completing final paperwork, and facilitating a proper knowledge transfer. Communicating clearly with departing employees about timelines and expectations is essential for avoiding last-minute challenges.
What role does knowledge transfer play during offboarding?
Knowledge transfer is a critical component of offboarding employees, as it ensures that the skills, insights, and responsibilities of a departing employee are effectively passed on to their successors or team members. This minimizes disruptions and helps maintain continuity within the organization.
How do you handle the offboarding of a former employee?
Offboarding a former employee involves wrapping up any outstanding tasks such as providing final paychecks, issuing tax documents, and ensuring access to company systems is revoked. Maintaining professional and courteous communication with the former employee also helps uphold a positive relationship and protects your company’s reputation.
Why is it important to focus on departing employees’ experiences?
The offboarding experience for departing employees shapes their lasting impression of your organization. A respectful and organized process not only supports a smooth transition but also fosters goodwill, which can lead to positive reviews or even rehires in the future.
How do you manage the offboarding of multiple departing employees simultaneously?
When offboarding multiple departing employees at once, it is crucial to streamline the process by standardizing workflows, automating repetitive tasks, and ensuring adequate resources are in place. Prioritizing effective communication and collaboration with your HR and IT teams will help manage this process efficiently.
How does a well-structured offboarding process benefit the organization?
A well-structured offboarding process ensures that the transition of an exiting employee is smooth and organized. It helps safeguard company knowledge, strengthens relationships with departing employees, and leaves a positive impression on both current and future employees, enhancing the organization’s reputation.
What role does employee engagement play in the offboarding process?
Employee engagement during the offboarding process is essential for creating a positive experience for the exiting employee. Open communication, thoughtful exit interviews, and acknowledgment of the employee’s contributions can leave a lasting impression, fostering goodwill that reflects positively on the company.
How can organizations support current and future employees through offboarding?
By implementing a transparent and structured offboarding process, organizations can reduce disruptions for current employees while maintaining workflow continuity. Documenting key responsibilities and insights from the exiting employee also sets future employees up for success.
Why is it important to prioritize an exiting employee’s experience?
Prioritizing the experience of an exiting employee demonstrates respect and appreciation for their contributions. A professional and empathetic approach during offboarding can build positive alumni relationships, which may benefit the company in terms of referrals, rehiring, or advocacy.
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