By the Numbers:
- According to the 2022 U.S. Bureau of Labor Statistics, the average employee tenure is 4.1 years, highlighting the increasing importance of a well-executed offboarding process.
- According to a study conducted by the Society for Human Resource Management (SHRM), approximately 61% of organizations conduct exit interviews as part of their employee feedback processes.
- According to a report by SecurityMagaize.com, 31% [of companies] have former employees who have accessed assets stored in cloud applications after they have parted ways with their employer.
- Motivation, Opportunity and Rationalization are key motivating elements for committing fraud. During the offboarding process ensure that all access to systems have been revoked, thus reducing the “opportunity” for ex-employees to steal or commit fraud.
Word of mouth plays a significant role in shaping a company’s reputation. A positive offboarding experience can encourage departing employees to refer others to the company and consider rejoining in the future.
Here are some key considerations for hiring managers and executives:
Conduct Meaningful Exit Interviews:
Just as feedback from lost customers is valuable, insights from departing employees can be invaluable. Conduct thorough exit interviews, identify common themes, and address any deficiencies. Regularly update exit interview questions to remove biases and gather honest feedback. Key points to consider:
- Leaving for more money is often a symptom, not the root cause, of dissatisfaction.
- Promotions obtained at new employer by departing employees indicate unmet career growth expectations.
- Industry changes should be scrutinized for underlying factors driving the shift (leaving a consulting role for an in-house position).
Create an Alumni Network:
Enrolling former employees in an alumni network is especially beneficial in professional services. Employees who leave on good terms are more likely to refer business or return as clients, leveraging their new positions to benefit your company.
Foster Transparency:
Goodbye lunches are a good way to show appreciation, but maintaining transparency throughout the offboarding process is essential. Avoiding announcements of departures can create a toxic culture. Open communication helps build trust and maintains morale.
Review Legal and Contractual Obligations:
During offboarding, review non-solicitation agreements and other contractual obligations with departing employees. Regularly reinforcing these terms throughout their tenure can prevent legal issues and preserve professional relationships.
Sometimes, a departure simply means the employee or company was not the right fit, and that’s okay. The goal is to ensure the last impression is as positive as possible, leaving the door open for future opportunities.
I welcome your comments on good and bad examples of employee offboarding you’ve encountered.
