Handling employee exits the right way

In the natural cycle of business, employees will come and go, but when they do go, it’s important the process is managed in a professional manner.

When handled correctly, an employee’s departure can actually be a good opportunity for you as the business owner or line manager, to gather feedback for improvement, maintain positive relationships and protect your business/brand reputation and support the rest of the team during the transition process.

If handled incorrectly, you could be putting your business at risk of disputes, reputational harm and lost productivity.

What the exit process should look like

• Confirmation of employee’s intention to leave - whether they are leaving voluntarily or due to other circumstances, always confirm their departure in writing and include details such as notice period and final working day, handover expectations and any accrued holiday

• Conduct an exit interview - a constructive chat to gain honest feedback about the workplace culture, leadership and systems and to find out the reasoning behind the employee leaving if they feel comfortable sharing

• Settle final pay - go through any outstanding salary or holiday pay, pension contributions or any bonuses due

• Manage company property - collect any company laptops, phones or other equipment from the employee and remind them of ongoing confidentiality obligations

• Communicating internally - your chance to announce the employee’s departure to the rest of the team with care and discretion and highlight next steps.

Even the best business owners and line managers make mistakes sometimes, but here are some common ones to try and avoid:

• Delaying communication to the team

• Taking feedback personally or becoming defensive

• Revoking system access at the wrong time

• Not documenting the exit properly

• Burning bridges with the departing employee.

Why it matters

For employees, their exit from your business can leave a lasting impression. A structured and thoughtful approach not only reduces risk but also helps maintain positive relationships and an all-round good feeling on both sides. 

By putting the right processes in place, you can ensure every departure is handled with professionalism and care.

We provide HR advice for small businesses. If you’d like help or guidance with putting the right HR processes in place, get in touch to see how we can help make managing your team simpler and stress-free.