Employee Separation Process
Every company should have a process to make certain every team member's conclusion of employment occurs in a manner that is positive, complete, and legally compliant.
A primary objective of any separation process is to reaffirm to the departing team member that your company is a great place to work. Why? Because after they leave, the relationship is still important.
Another reason is they talk about your team to others. Sincerely maintaining the relationship motivates them to focus their comments on the positive aspects of their time with your organization.
Start strong when you hire. End strong when people leave.
I know of an executive who joined an organization and left after almost a year and a half. No exit interview. No message to his team members or any employees of his departure. No goodbye. No thank you for his accomplishments, which were many, including every objective he was assigned.
This guy is a professional. He strives to only comment positively or in a neutral way to any questions posed to him about his prior employer. But their unprofessionalism and unkindness makes it difficult to feel good about the time he invested achieving the objectives they set and more.
There are three parts to a clear, written separation process predefined by your organization:
Team Member Separation Process guide explaining your process.
Exit Checklist to prepare for the Exit Interview and complete the separation process.
Exit Interview scorecard to confirm what occurs during that meeting.
HR or a person senior to the departing employee’s direct manager confirms the proper separation procedures are followed each time a team member leaves your organization.
Here are specific steps we recommend our Clients follow in their employee separation process:
Types of Separation
TERMINATION
Here are key steps when a team member is terminated due to poor performance:
DOCUMENTATION: Review the documentation you have confirming the employee's performance is not acceptable, including how they have been warned in-writing and verbally of the consequences for not performing up to your standards. Dates, times, descriptions of each interaction are important even if the team member did not acknowledge receipt in-writing.
NOTICE: Prepare written notification (email or letter) to the team member explaining the decision. The Human Resources Department or the employee’s direct manager drafts this brief letter in a professional manner using a standard company template that clearly defines the reasons for letting him/her go. The letter is proofread by HR, the employee’s direct manager, and/or someone else before being delivered to the employee.
INFORM: Verbally tell the team member first, then give them the letter during the conversation, or email the written notification immediately afterwards.
LAYOFF
The steps to layoff someone is similar to termination. Step 1 is less important. Your main focus is steps 1-2.
QUIT
Here are appropriate steps when an employee is quitting:
IN-WRITING: The team member leaving must notify you in-writing of their decision and desired final workday. If they tell you verbally, then require them to submit their decision in-writing before leaving work that day.
RETAIN: Before accepting their resignation, have a casual conversation to discuss why they plan to leave. Are they a solid role player or superstar whom you want to keep? Do you think they may be making a mistake? If so, then without pressure, reconnect them to the positives of staying on your team. Try to convince them to stay.
ACCEPT: If you are unsuccessful in your attempt to retain them, then prepare written notification (email or letter) to the team member accepting their decision and confirming their last day.
The Human Resources Department or the employee’s direct manager drafts this brief letter in a professional manner using a standard company template. The letter is proofread by HR, the employee’s direct manager, and/or someone else before being delivered to the employee.
NOTIFY: The team member should be told of your acceptance verbally first, then handed the letter during the conversation or emailed the written notification immediately afterwards.
Preparing Your Exit Checklist
HR or the team member’s direct manager reviews the draft Exit Checklist to confirm everything needed can be confirmed prior to the Exit Interview:
Here are common tasks to be on an Exit Checklist:
DOCUMENTATION: Important information related to their employment is documented and ready for discussion.
PAYCHECK: Accounting has confirmed the exact amount of the player’s final paycheck, including any amount that needs to be paid for unused paid time off and other accrued benefits. If appropriate, this amount is confirmed by HR and/or the team member’s direct manager.
PROPERTY: A list has been compiled of all company property the team member must return prior to the issuance of the employee's final paycheck. List everything below other items to confirm in an Exit Checklist.
NOTE: Companies often legally has the right to deduct the value of unreturned Company property from funds that may be due (i.e., final pay, paid time off…).
SECURITY: As part of your Exit Checklist, specify who must be informed of this employment change. For instance, insurance vendors, I.T., whoever manages security access to company facilities, and a limited number of other parties.
REFERENCES: For solid performers, prove you value them by offering to be a reference, provide a letter of recommendation, or endorse their skills and write a recommendation of them on their LinkedIn profile.
For someone who is being fired or laid-off, you may offer them free career counseling or job placement services to assist them in their next career move.
Exit Interview
All employees who end their employment with your Company are encouraged to participate in an Exit Interview with the Human Resources Department, a leader other than the employee’s direct manager, or their direct manager.
Use an Exit Interview scorecard to confirm all details and discussions occur that are stated in your separation process.
LEARN: Although not ideal, welcome these conversations as an opportunity to learn how to better serve your team members and provide the best possible place to work.
TRUST: These workouts are led by a “good cop,” who encourages open discussion of what the individual feels was good AND BAD, and what could improve with your organization. It is a safe place to discuss their feelings and perspective, even when they are wrong.
One approach is to simply respond to some of the answers with, “That’s interesting. Please tell me more.”
BOND: This is NOT an opportunity to argue or chastise a departing team member. In contrast, every effort should be made to strengthen mutual respect, camaraderie, and sincerely wishing them the best in the next chapter of their career.
LEGAL: Our Clients often ask or require employees to sign a separation agreement with their Company prior to issuing the player’s final paycheck.
WHEN: Our Clients typically schedule their exit interviews 1-3 days prior to the team member’s final day of employment.
FOLLOW-UP: The reason for the additional conversation three months later is the former employee has had more time to think about their reasons for leaving. They often provide additional insights into how your team can improve.
Schedule the check-in for three months after their last day you’re your organization.
After the Exit Interview, the separation process should flow smoothly through the team member’s last day.
Culture Options
Most teams seem to have a strong culture when a player is being hired. However, the way you behave when someone leaves your team confirms your team’s true character, culture, and commitment to maintain strong relationships with others.
Earlier I recommended you start strong when you hire.
Here are some ways you can end strong when people leave:
Announcement: At a minimum, send a company-wide email informing people that a valued employee is departing. Recognize their accomplishments and thank them for their service. Send this the morning of their last day.
For a team member who is fired or laid off, send a brief email saying something positive about them as a person, and mentioning that they have moved on. You sincerely wish them the best. Send this after they leave the office their final day or the next morning.
Meal: The person’s direct manager or a small group may share a nice meal together to celebrate the departing team member, and their contributions.
Farewell Event: Host a fun gathering for teammates to be with their departing colleague, with or without time for telling stories, expressing gratitude, and/or giving gifts or awards. This can be a small or large group.
Legacy: Superstars in the NBA, such as Michael Jordan and Pete Maravich have their number retired as a tribute to their championship contributions. You can consider something similar.
In their honor, you can:
Name an internal award, program, room, building, or event after them.
Create a memory book or video montage.
Plant a tree.
Invite them to join your alumni network.
Keep them updated on major company news and events.
We encourage you to regularly take one or more of these actions to close your season with a player sincerely, positively, and respectfully. It is important for your relationship with them, and reinforces you have a championship organization.
Separation Process Guide
Here is one way to close your Team Member Separation Process guide:
We strive to have a team member separation process that is efficient, respectful, and transparent. One primary target objective is to equally support our departing employee and our organization during this transition.
We appreciate the contributions of every team member, and wish them success in their future endeavors.
Reach out to HR if you have additional questions.
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