Contrary to onboarding, an employee’s offboarding starts when he is going to leave the company, either due to resignation or termination. In order to execute a smooth offboarding process, it is necessary to evaluate if the termination of employment is voluntary resignation or layoff.
If an employee voluntarily resigns, their manager should conduct a specific plan before the employee’s departure. Regardless of the reason why the said employee leaves the company, it is crucial to perform a Termination Plan task, where HR analysts must decide what activities are needed to be performed for the employee’s departure.
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Employee offboarding should be documented to ensure compliance with various regulations. The documentation can also prevent errors - like not collecting a company-issued mobile device from a departing employee.
Why is an offboarding program important?
As an employer, you might think that there is no point in investing time or resources into employees who are leaving the company soon. Yet, a survey found that 71 percent of employers who formalised their offboarding process see an increment in employee retention. Additionally, employers can monitor how they spend the budget on their employees if offboarding is in place. These are two vital reasons why offboarding is important to have. Offboarding - resignation, layoff, firing, retiring, and the end of a seasonal or temporary work contract - also comes with its own set of policies and procedures. This means that employers should have a neat offboarding program to avoid legal issues.
Do it right. How? Here is what employers should do:
Closer to the termination date, it is necessary to perform different activities such as what has been mentioned. HR could give different tasks to employees without overburdening the said employees.
Employers should collect elements provided by the organisation, such as laptop, telephone/handphone, access cards, membership, etc.
Employers should conduct an exit interview. This interview is important because it provides data from improving working conditions and retaining employees’ programs, among other things.
Employers should remove the said employee from automatic payroll, health care services, etc.
Employers should disable or cancel access rights to a company's information system.
To close the process, employers should ensure that the said employees receive an amount of money that includes unpaid salary, damages, and compensation for loss of office and update the payroll.
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