Figure 1 Employee Exit (source:https://twitter.com/EmployeeForums/status/1413330829955280897/photo/1)
Hiring and Firing are important pillars of an organization to have the best fit in the employee pool. As all the organization have its own Recruitment policy, it should also be HR's responsibility to have a proper strategy for exit to filter and retain the best fit.
Exit Policy
Employees will leave the organization due to retirement,
resignation, end of the contract, termination, etc. when they leave, it is their
responsibility to submit a written resignation letter to their head or the company
will give them notice. Subsequently, the exit policy fulfills the purpose of
having the process in place when an employee leaves the organization.
The resignation/termination letter should mention the notice
period. Further, they should continue with their regular role and responsibilities
throughout the period, and they should assist their existing team and transition
if the replacement is in place.
If there won’t be a proper exit policy, the company will suffer in a different aspect, and having a clear procedure will guarantee the protection of
the organization and its assets, as well as it will help employees leave with
dignity. This also helps the company to measure the feedback of employees about
their tenure.
Importance of Exit Policy
Same as it is essential to pay attention to an individual who is
joining the enterprise, off-boarding an employee also cannot be neglected. This
has a lot of benefits. It is necessary as it helps the company in overcoming
talent turnover and has a huge impact on the growth and performance of the
organization. Moreover, it provides the enterprise with instructions and
information about what needs to be changed and enhanced.
Figure 2 Exit Process (source: http://hrmpractice.com/processes-for-employee-exit/)
Key Elements of an Employee Exit Policy
Professionalism in transition, Transfer of Knowledge, Analysis, and
feedback/exit interview are the four key elements of Exit Policy.
Both company and employee should maintain professional work
ethics to ensure a smooth transition. A business should consider the notice
period offered by exiting employees. Organizations should critically evaluate
the productivity of the notice period and if it seems not worth delaying, the employer
can accept the resignation immediately and pay for the notice period or
negotiate for a win-win situation.
The HR team should ensure the proper and well-planned
handover/takeover strategy during the notice period or before the exit to
fulfill the transfer of knowledge document which includes job tasks, ongoing
projects, status, deadlines, etc. It should also mention where the related
information is stored.
Quickly analyzing the circumstances for exiting the organization is
appropriate to make sure the root cause of the exit by assessing JD the
workload and this also helps to find a solution in the future to improve the
functioning of the company by having a strategy.
Upon the analysis, it is important to seek feedback through an exit
Interview to understand the employee's situation and experiences about the job,
their work environment the reason for leaving. A good exit interview system can
help reduce turnover and increase employee satisfaction and commitment by addressing
the issues. On the other hand, conducting an exit interview is obviously not effective
with a terminated employee.
Finally, the HR team should have a checklist, set of steps to follow,
and ensure the list is completed when each employee leaves and which will avoid
missing anything.
Conclusion
Hence, all the companies should have the Exit Policy which provides
a chance of improvement on the employee’s side and improves the working of the
company. The procedure should be handled very strategically and both employer and
employee should stick to it for a better outcome.
Further, companies should ensure to take an exit interview which will provide a clear picture of the reason behind why the employee is leaving. Having the right exit strategy implemented has the potential of bringing the best for your present and future too.
References
Guest Post, 2021. All Business. [Online]
Available at: https://www.allbusiness.com/business-exit-strategy-business-plan-119617-1.html
[Accessed August 2021].
Anon., 2020. Human Resource. [Online]
Available at: https://www.feeliumecontract.com/knowledgecenter/why-do-businesses-need-employee-exit-policy%3F/5e257aacfe9ba0260766b4d2
[Accessed August 2021].
Jahan, S., 2021. Human Resource Management
Practice. [Online]
Available at: http://hrmpractice.com/processes-for-employee-exit/
[Accessed August 2021].
Paul Williamson, 2021. SELL MY BUSINESS. [Online]
Available at: https://www.sellingmybusiness.co.uk/articles/selling/the-importance-of-having-an-exit-plan
[Accessed August 2021].
Eventhough the organization has a good culture, effective learning environment, and good leaders the employee turnover is inevitable. Employees may leave organizations, when they need a career change, looking after their newly formed family, or just because it’s time for a change. However, when a person leaves, it is important to hold an exit interview to assess overall employee experience and, as a result, can identify opportunities to improve l retention and employee engagement. Thankyou for sharing this interesting article Amjad.
ReplyDeleteVery informative...High staff turnover is costly because recruiting and training new staff is costly. That’s why most organizations have the goal of retaining talent wherever possible. Exit interviews are a useful solution to the problem of high turnover. Exit interviews can reveal patterns in the reasons staff leave...
ReplyDeleteIt is important to have a clear process for employee exit which able to manage the leaving process with less harm to the organization. This allow employee to leave with dignity and able to inquire about their time of employment with the company. As you mentioned Amjad, important to monitor exit process during the notice period and make sure handing over duties and find a suitable replacement.
ReplyDeleteBoth the exit policy and the exit interview are critical for both the employee and the employer. Exit policy should be strategic and handled to achieve a better outcome. Exit interviews enable all employers to conduct self-evaluations and identify areas for improvement. Thank you for sharing this well-written article.
ReplyDeleteAn important topic, thank you for sharing.
ReplyDeleteAs Feldmann (2021) argued, one of the most significant reasons for implementing a seamless employee exit strategy or policy is the unnecessary strain that failure to do so imposes on existing workers. Therefore, exit policies benefit the organization and the stakeholders as well.
Uncommon but important topic to discuss Amjad. Exit policy fulfils the purpose of having the process in place when an employee leaves the organization. Having a clear and proper process to follow during the exit of employees will guarantee the protection of the organization and its assets, as well as it will help employees leave with dignity. Exit interviews may well reveal the need for a better learning and development strategy within your business. If employees don't feel supported or challenged in their roles, then it's more likely they will leave. It will also flag-up opportunities in management development and succession planning.
ReplyDeleteHi Amjad! Exit policy fulfills the purpose of having the process in place when an employee leaves the organization. ... Thus, having a clear and proper process to follow during the exit of employees will guarantee the protection of the organization and its assets, as well as it will help employees leave with dignity.
ReplyDeleteEmployers conduct exit interviews to learn why employees resign and what they can do to prevent it. It is also done to learn what an employee liked about the job and the company, as well as how the hiring process can be improved. After all, resignations aren't always the result of poor management. It could have been due to a poor cultural fit, or the resigning employee simply lacked the necessary skills.
ReplyDeleteThe goal of an employee exit policy is to have a process in place for when an employee leaves your company (resignation, retirement, end of the contract, etc) When an employee resigns from their position, they should submit a formal letter of resignation to their immediate supervisor based on the length of their notice period. This could be indicated in the employee's letter of engagement or (if no letter exists) During the employee's notice period, they must continue to do their normal duties and assist with the handover to the existing team or their replacement, if one is in place. as well as, The goal of exit interviews is to learn about the employee's thoughts and experiences, as well as to get feedback regarding the job the employee held, their work environment, and your company.
ReplyDeleteA solid exit interview strategy can assist minimize turnover while also increasing employee satisfaction and engagement by addressing some of the reasons why individuals leave.
Hi Amjad, One must be thinking that what's the necessity for investing some time and resources after the one that is leaving? Why engage with people that have already decided to leave? Here is the answer to your question. You may find it unproductive and a waste of your time to specialise in such employees, but it's vital .
ReplyDeleteGood topic Amjad.Employee Exit policy shows the handling the full and final settlement of employees when they leave the organization. When the employee resigns, retires, or is being terminated from work, the necessary paperwork and formalities associated with employee exit need to be done via a systematic process.
ReplyDelete