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No matter how happy your employees are working at your company, at some stage, they’re likely to leave your employment either through resignation, redundancy, or retirement. This is especially true when considerable skill shortages across all market sectors exist, creating more competition in the jobs market. 

In this article, we discuss how employers can implement best-in-class employee exit policies and procedures to ensure they gather valuable information about the positives and negatives of their business when an employee leaves.

What is an exit policy for employees?

An exit policy governs the processes and procedures that should happen if an employee sends their resignation letter or has their employment terminated. 

Employees should feel confident they can communicate freely and honestly and that don’t going to suffer negative repercussions regarding their final pay and/or references.

What are the benefits of exit interviews for employees?

Having a standard exit policy and procedure in place allows you and your employee to part on good terms, ensures your commercial interests are protected and enables you to gather honest feedback about your business, including information concerning:

  • Why is staff turnover so high (if applicable)
  • The employee’s thoughts on the effectiveness of their line manager
  • Any gaps in training and/or employee support
  • Whether workloads are too light/heavy
  • Do employees feel that your business provides a clear career path?
  • What the employee’s new employer offers that your company does not provide

What type of employee exit policies and procedures do I need?

Your business should have the following in place:

An Employee Exit Checklist

This ensures vital steps such as terminating the employee’s email account and access to the server, returning equipment, and reminding them of any covenants and confidentiality clauses in their contract are completed. 

Exit interview process

Aiming to understand the employee’s experiences and perceptions and get feedback about their job, staff morale, and any improvements they believe could be made.

A checklist for the exiting employee’s final pay

Be sure to include any holiday pay, bonuses, and expenses.

What documents do I need when an employee leaves the business?

You should provide the following exit documents for employees when they resign, or their employment is terminated: 

How to conduct an exit interview with an employee?

An exit interview is a crucial part of the employee exit process, as the information you obtain will help you improve your operation and retain existing staff.

An effective exit interview should be as relaxed and informal as possible. Do you know what to ask in an exit interview with an employee?

Some essential exit interview questions to ask employees include: 

  • What is the culture of the company like?
  • What areas of the workplace could be improved?
  • Did you have the right tools and training for your job?
  • Did you and your manager have a good relationship?
  • Are there any specific examples of what you liked/disliked about working here?
  • Could you report problems to your manager?
  • Did you feel like a valued employee?
  • Why did you take the decision to leave?
  • What does your new position offer that we cannot provide?

Keep a written record of everything said so your HR department can review it when creating employee onboarding and retention strategies.

Get legal assistance from LawBite

Your company's offboarding process or how employees leave your organisation is as important as how they are onboarded. Having exit policies and procedures in place will protect your commercial interests when a staff member leaves your company.

LawBite has helped 1000s of businesses achieve their commercial ambitions and regulatory compliance. To find out how we can help support you with all employment law matters, book a free 15 minute consultation or call us on 020 3808 8314.

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In closing

Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.

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