Associates leave an organization for many reasons: some move away to other towns or parts of the country; some leave for new opportunities; some are laid off because of a shortage of work or a downturn in the economy; some are asked to leave because of misconduct.
Whatever the reason, your organization needs to have a checklist to ensure that the business relationship ends properly and completely.
- Document why the relationship is ending. If an associate is resigning, ask for a written letter of resignation. The letter should contain basic information, such as:
- The current date
- The associate’s final date
- A brief explanation of the circumstances around the change. Please note that if an associate is being asked to leave, ensure that all documentation is complete (this subject will be explored in more detail in an upcoming post).
- Signature of their supervisor or a manager.
2. Notify your key people when an associate is leaving.
- The Management Team – Depending on the circumstances, an associate may want to delay notifying the entire organization that they are departing, but supervisors, managers, and owners should be made aware. Schedules will have to be altered and an interim and permanent replacement will have to be found. Don’t make the mistake that your managers don’t need to know.
- Key customers or clients – Managing customer relationships and bridging from one contact to another contact requires sensitivity and preparation. Never that a customer/client association as a given.
- Payroll and Benefits – You will have to: Prepare a Record of Employment (ROE); Calculate vacation pay entitlements; Notify your benefits provider and collect any benefit cards; and, severance may need to be paid as well.
- Schedule an “Exit Interview”. Take advantage of the opportunity to gain insights into what the departing associate thinks about your organization. Use a standard list of questions and make use of the comments. Consider using an associate who may not be the departing associate’s manager.
- During the exit interview, ensure that you obtain forwarding contact information for taxation purposes and any future correspondence.
- If the relationship is being severed due to misconduct or a negative incident, use a neutral or empty office. Plan for the associate wanting a place to compose themselves afterwards, privacy is helpful.
- As with any kind of associate meeting, always have a witness. This is particularly important when an associate’s relationship is being terminated: the departing associate’s reaction might range from quiet acceptance to violent screaming and everything in between.
- Always treat your associates with as much dignity and respect as possible regardless of the circumstances regarding their departure.
- Make arrangements with the associate to return any company property in a timely manner. For example:
- Keys – Although expensive, depending on the circumstances of the relationship, consider changing the locks.
- Benefit Cards – Health Cards, Gas Cards, company credit cards. All should be returned immediately unless special arrangements have been made.
- Uniforms, computers, cell phones – These are standard, but remind the associate to remove any personal pictures or files before their final day.
- Allow the associate time to collect their personal effects. When an associate is resigning or being transferred, allow time to collect their things as part of their regular day. If an associate is being terminated, be very aware of their feelings and dignity as well. Allow them time to say goodbye to their fellow associates, but remember to monitor the situation and develop an appropriate time limit to avoid lingering.
- Passwords and Email Forwarding – Arrange for new passwords and forwarding of correspondence of all email and company social media accounts.
- Explain the situation briefly to the other associates. Avoid too much detail to protect the departing associate’s privacy and yourself. Ensure that everyone knows how to respond to inquiries about the departing associate (customers/clients/suppliers/other contacts).
- When it is time to leave, thank them for their service. Take the time and walk them to the door in a friendly way.
This is not an exhaustive “exit checklist”. Your organization may require more or less detail. In certain circumstances you may wish to have legal advice, which is beyond the scope of this post.
Having an exit checklist avoids mistakes and omissions. I have seen companies forget to remove a person’s email access long after they had left to go to a competitor, and the associate was still receiving confidential information. By being prepared, you protect your company, your associates, and yourself.
Paul.