Smooth Transitions: Designing a Positive Offboarding Plan

Most companies have a documented plan for welcoming and integrating new employees into the organization (onboarding). But the reverse is rarely true – few companies are disciplined about transitioning employees out of the organization (offboarding), whether the transition is due to retirement, termination or voluntary resignation.

Offboarding, however, is actually a crucial part of talent acquisition, impacting future referrals, employment brand and talent brand.

So, what is offboarding, and how can an effective offboarding strategy contribute to the long-term success of an organization?

What Is Employee Offboarding?

• A disciplined process. While the individual elements of offboarding should reflect company organization and culture, every organization needs a formal process that addresses the physical logistics of a separation (IT, equipment), communication timeline and tactics and compliance issues.
• Cross-functional. Offboarding should involve the exiting person’s business unit, other teams and customers they interacted with, and security, IT, payroll and benefits departments.
• Essential for every individual. Whether it is a cherished retirement, termination for cause or a large-scale layoff (e.g., reduction in force, or RIF), each departure should follow a planned process.
• A positive employer brand builder. An organized and well-executed offboarding process demonstrates an organization’s commitment to its employees, helping it to attract future talent. One remarkable case is a former client. When the construction company had to lay off 50 experienced team members, it alerted its competitors that talented people would soon be available for hire. This goodwill gesture showed that the company was genuinely interested in its employees’ long-term success, which maintained its reputation during a difficult time.
• A boost for morale and engagement. When departing employees are treated with respect and dignity, other employees trust in leadership’s decisions and are more likely to remain loyal.
• Risk mitigation. A transparent offboarding process minimizes risk to company assets, ensures compliance and reduces overall exposure.
• Work continuity. If the person leaving had direct contact with customers, offboarding should translate their experience and contacts to successors to maintain client relationships and momentum.
• Encouragement for future collaboration. In a recent study by Workplace Trends, 15% of employees reported “boomeranging” to a former employer, and 40% said they would consider returning to a former employee. Good offboarding leads to good relationships, creating brand advocates, future partners and even returning employees.

Preparing for Smooth Transitions with Positive Offboarding

To get the best results from offboarding, remember these best practices:

1. Prioritize the employee experience. Treat departing employees like humans rather than numbers, and allow them to say goodbye to work relationships. Acknowledging the social side of work indicates respect, which can impact future hiring and deepen existing employees’ loyalty to company culture.
2. Plan communications and knowledge transfer. The remaining employees are often only notified about a colleague’s departure after that person has left. Through careful communication, however, the organization can embrace the opportunity to transfer experience, knowledge and responsibilities. Identify a successor early to reduce confusion and maintain productivity.
3. Manage decision-making. Select the appropriate people to lead the offboarding process, as mistakes can be costly. One organization laid off all employees working a certain shift but forgot to notify one; that person showed up at an empty facility. Another company laid off the wrong person because he had a similar name to the intended person. Double-check that decisions are made responsibly and carried out properly.
4. Control risk. One company suffered theft as a result of forgetting to revoke an employee’s security badge. Oversee the retrieval of company property and access to protect against potential asset loss and security risks.

Get Help Creating or Optimizing Your Offboarding Program

Employee offboarding is a critical phase that shouldn’t be overlooked or underestimated. But it can also be challenging. Professional HR consultants, like hrQ Inc., specialize in organizational transformation and reorganization and apply our experience to offboarding strategies that protect organizations and maintain a positive employee experience.

Need to backfill a critical role? Our search and interim team can find the perfect hire or fill temporary gaps with fractional HR and marketing leaders or interim staff.

Contact us to learn more about our offboarding and other talent management services.