Exit Management or employee offboarding is a process to manage the full and final settlement of employees when they exit from an organization.
When an employee resigns, retires or is being terminated from work, the required paperwork and formalities associated with employee exit need to go through a systematic process. Exit interview, clearance from various departments, replacement of the departing employee, full and final settlement of employee dues and more – HR has a lot on the plate during employee offboarding.
It has been observed that though organizations are equipped with the latest HR tools to hire and onboard new hires, they struggle to conduct a flawless employee offboarding process. According to a survey by TEKsystems, only 14 percent of IT leaders strongly agree that their organization has an effective employee exit management process.
Let us gain some insights into
- How can an organization make Employee Offboarding a good experience for the exiting employees?
- How can an effective Exit Management process help in tracking employee exit reasons and reduce attrition?
To gain constructive feedback from the leavers, companies should conduct standardized exit interviews.
Empxtrack provides survey forms for exit interviews, where questions can be uploaded in the questionnaire and feedback is obtained from the departing employees.
By analysing the feedback about job expectations, work culture, reward and recognition policy, leadership, career growth, salary and other hygiene factors, valuable insights can be gained by employers on reducing attrition, prevention of bad hires, retention of top performers, improving work culture and more.
Digitalize Exit Management
Right from the acceptance of employee resignation to approval by the manager and full & final payment by HR, automation helps in the exit management process, making it more transparent and efficient.
To complete the entire exit process, various approvals are needed from finance, IT, HR and other departments. With Empxtrack Exit Management tool the entire exit workflow can be carried out in a few simple steps.
Prepare Exit Checklist
With Empxtrack exit management software, prepare department wise exit checklists in a systematic way and record checklist responses before generating full-and-final settlement and relieving letter.
Follow these steps while creating an exit checklist and manage legal and industry compliance requirements to avoid any risks.
- Discuss the remaining project work and its due date before an employee’s last day.
- Prepare a SOP (standard operating procedure) to set up responsibilities for the next person in role and help him/ her excel in the position.
- Plan for Knowledge Transfer (KT) to the replaced employee.
- Settle expenses and reimbursements for the exiting employee.
- Return company issued access card, laptops, mobile phone, keys, etc.
Employee Exit Analytics
Attrition cost up to 2.5 times the salary of an employee and this is a major concern for the employers.
During an employee’s lifecycle, the organization incurs expenditure on training, skill development, rewards, insurance etc.
With an exit, there is an additional cost incurred on advertising for the job role, recruiting a new person, training of the new employee and more
Empxtrack Exit Management tool provides exit analytics to understand exit reasons and to reduce employee turnover.
Data collected through exit analytics is helpful in increasing employee retention and organizational effectiveness. In my earlier post, I have done an analysis of the employee exit reasons using 50K+ records.
Image: The dashboard shows exit reasons with number of exited employees for each department.
Empxtrack exit analytics provides deep insights to HR, leadership and line managers in predicting and controlling attrition. Empxtrack exit data analytics helps in-
- Finding out the key exit reasons and patterns of attrition
- Gaining insights on why employees quit within a few months of joining
- Behavior, engagement and productivity levels of the exiting employees
- Preparing a predictive model to predict future attrition
- Improving attrition rate by implementing effective retention strategies
With an effective exit management tool, you can run analytics, analyze exit data & reasons and make a suitable action plan to combat attrition.
Empxtrack exit management tool consists of comprehensive resignation workflows, knowledge transfer workflows, exit checklist workflows, online exit interviews and exit analytics.
An exit survey form can be invoked by HR and sent to the departing employee for gaining feedback and more insights into employee attrition. It is important to note that a formal exit management process mitigates security and legal threats to the employer.
Employee offboarding isn’t a permanent goodbye. Make sure to treat the exiting employee well with gratitude and leave an unforgettable milestone in their professional voyage. Try out the best exit management practices and end an employee’s journey with your organization on a good note.