A Strategic Approach to Resignation Management
What Is an Employee Resignation?
Employee resignation is when the employee resigns voluntarily. Typically an employee gives the defined notice when they decide to leave the company.
Employee resignations happen for many reasons. It can be a good thing or a bad thing, it just depends on what has taken place. It can be a good thing because that employee’s resignation allows the opportunity to bring in people with new ideas and approaches to the company. On the flip side, it can be costly when people leave.
No company wants too much turnover to take place because it costs money and time to replace employees.
Employee resignations are a natural part of any workplace, but they can still be disruptive and challenging to handle. By having a well-defined process and remaining professional throughout the process, you can ensure a smooth transition for everyone involved.
What Are Reasons an Employee Would Resign?
- Lack of Advancement. Employees may feel there are no opportunities ahead of them to get promoted or they have been told they will not be promoted any time soon. An employee may view a job change as an opportunity to start over and look for a better growth opportunity.
- Poor Supervision. Employees want a manager who provides training on the interpersonal and technical skills needed in a job. It is the responsibility of the company to put in place effective managers. Employees will leave if they do not feel like they have a manager who knows how to do their job.
- Toxic company culture. Does the company walk the talk? Employees want to feel like they are a part of a company who does what they say. Employees don’t want the company to allow bad players to stay just because the company is heavily reliant on them. This does not help your employees to want to stick around.
- Inadequate compensation. Market rates and society are changing and compensation for employees needs to change with the times. If you haven’t visited compensation in awhile then it’s time to put a compensation structure and plan in place. Employees want feedback and they want to know how they are doing.
- Insufficient training. The employee may feel like they were not properly oriented and trained to do their job. If you discover this is a reason for an employee’s resignation, take it as an opportunity to build a formal training program. Train supervisors on how to be better trainers and coaches for your employees.
- Monotonous work. Keeping an employee in one position without the opportunity of rotating jobs can cause that employee to resign. Think about whether or not you are paying enough for such a position. The job may not have enough enriched content to help the employee feel like they are progressing. The problem may even go as far back as not having a realistic job preview.
- Personal Issues. Issues arise in personal lives all the time. If an employee resigns due to personal issues, think about whether or not the company could have assisted with the situation. Training managers on being a good listener and watching for warning signs of burnout can go a long way in assisting employees with personal issues. Educate your employees on what mental health benefits are available to them such as employee assistance programs.
- Heat of the moment resignations : Sometimes an employee resigns in the heat of the moment following an argument in the workplace or a significant event. However, it is established practice that an employee should be given the opportunity to withdraw the words of a resignation if they are spoken in the heat of the moment once they have calmed down, providing the employee acts promptly towards that situation.
If you are dealing with a difficult employee and/ or a decision that appears to be taken in the heat of the moment, it may not be safe to rely on the resignation without further communication with the employee to confirm their position. In the absence of this confirmation, you may be effectively dismissing the employee, which brings with it the many legal risks associated with a dismissal.
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How Should HR Handle an Employee Resignation?
1. Acknowledge the Resignation:
Maintain your composure: Even if it’s a key employee, stay calm and professional.
Ask for confirmation: Ensure they’ve made up their mind and understand the implications.
Get it in writing: Request a formal resignation letter to document the date and terms.
Figure Out Last Day of Employment : It’s good to know when an employee leaves because you then know what your time frame is to get everything done before an employee leaves.
2) Schedule and Conduct an Exit Interview
Find a time to meet with the employee to understand why they are leaving the company and what the company can do better going forward.
Listen actively: Understand their perspective and concerns.
Don’t pressurize: Avoid counteroffers or making them feel bad about their decision.
Gather feedback on the employee’s experience: Learn about their reasons for leaving and areas for improvement.
Express gratitude and well wishes: Thank the employee for their contributions and wish them success in their future endeavors.
Maintain confidentiality: Respect the employee’s privacy and avoid discussing the interview with others.
3) Administrative Tasks:
Gather company property: Collect ID cards, equipment, and any other company assets.
Review benefits and payroll: Explain the last day for benefits coverage and final pay calculations.
Complete paperwork: Handle resignation forms, non-compete agreements, and tax paperwork.
Identify a knowledge transfer buddy: Assign someone to learn the departing employee’s responsibilities.
Create a handover plan: Document processes, passwords, and other essential information. You need to communicate with the IT department so they can plan for the appropriate time to disable passwords, remove accounts, collect company assets (laptops, cell phones, thumb drives),
4. Communication and Announcement:
Inform internal stakeholders: Communicate the resignation to management and affected teams.
Craft a professional announcement: Share the news with the broader team in a respectful manner.
Address questions and concerns: Be prepared to answer any inquiries from employees.
Steps to Follow as an HR After the Employee Resignation is Confirmed
1. Complete Paperwork and Legal Requirements:
Process resignation forms and agreements: Collect all the signed documents applicable as per your company norms and industry norms.
Handle tax forms: Provide necessary tax documents to the employee.
Coordinate with IT: Disable company accounts and access to sensitive information.
Review benefits and COBRA options: Explain the continuation of benefits options and eligibility.
Gather all documentation regarding the employee into their file. File the resignation letter from the employee. Move their files into inactive employee’s file. Another thing to keep in mind is the retention of records. Begin to create a system that will help you know how long you have to hold onto documentation.
2. Recruitment and Replacement:
Start the recruitment process for a replacement employee.
Talk with the manager to find out whether or not the position needs to be backfilled. If it does, work with the manager on getting the position ready to be recruited for. Review the job description to get it posted. Start the recruiting process again.
Consider internal candidates who might be interested in the position.
Review your hiring strategy based on the feedback received during the exit interview.
3. Maintain Professional Relationships:
Connect with the former employee on LinkedIn or other professional platforms.
Consider future opportunities for collaboration or partnerships.
Remember that a positive exit experience can benefit your company’s reputation and network.
What If an Employee Walks Out Without Resigning?
“If it didn’t happen in writing, it didn’t happen.” Meaning, follow up in writing via their personal email address to confirm that they are quitting their role at the company due to walking out of work, if they do not respond within 24 hours to the email, then you will take that as confirmation of separation due to resignation, similar to job abandonment / Absconding Case.
Then process their separation as a voluntary separation and follow the standard steps you have internally. It is better advised to include a Separation Notice with your email when confirming their separation. This is a PDF with the company letterhead confirming their last day worked, what they can expect from their final pay-check and their date, and then mentioning that they will get information following up regarding benefits eligible.
Start with checking what your company policy is. Commonly it’s viewed as job absconding, however, I strongly recommend trying to find out why the employee left. I’ve had situations where it was discovered that they had been subjected to a hostile work environment, or were being harassed. They hadn’t brought it to anyone’s attention due to either not trusting the HR department from having a prior bad experience, or fear of retaliation from the employee they were having issues with, they didn’t want to appear like a snitch, etc. They walked off the job because they couldn’t take it anymore. If you’re able to save the employee in those situations awesome, but if not it gives you an opportunity to talk with them, confirm what the intention is, possibly do an exit interview, and hopefully get some feedback.
