Offboarding employees is often an uncomfortable topic for employers, but preparing a smooth process for exiting employees has a multitude of benefits for your organization.

The Importance of Establishing an Offboarding Process

An employee resigning can result in a lot of stress leading up to and following their end date. Having a concrete offboarding process can not only reduce this by giving clarity for you and the exiting employee, but also…

• Helps protect your organization from legal liability
• Gives the exiting employee the opportunity to leave on good terms
• Ensures company property is collected and information is secure
• Eases the transition with the former employee’s team

The offboarding steps or pacing can also depend on whether the employee’s termination is voluntary (resignation, retirement, etc.) or involuntary (layoff, etc.).

Step 1 – Prepare Paperwork

The first step for offboarding any employee regardless of the circumstances is to ensure that you have the required documentation.

Resignation Letter

If an employee has decided to leave the company, the first step is to ensure you have received their resignation in writing, which includes their last day. If they state their intention to resign verbally, ask for confirmation in writing to prevent any miscommunications. This can be in the form of a letter, email, or even text message. Once you receive the resignation, accept it in writing.

Your response can include…

• Confirming their final working day
• Thanking them for the time they spent working with your organization
• Letting them know that there will be an offboarding process to complete

Some organizations prepare offboarding checklists for resigning employees. This gives the employee any steps they must take and what they can expect in the days leading up to their exit date.

Termination Letter

If an employee is being terminated involuntarily, the first step for employers is to draft a written termination letter with any associated documentation, such as a Full and Final Release. This letter should be presented to the employee during the termination meeting.

Other Documentation

Departing employees should also be given information on their benefits, such as continuation or withdrawal, retirement plan, and unemployment insurance (EI). Additional documents or agreements may be given to the employee, such as non-disclosure agreements (NDA) or a policy to return any company assets or property.

Some may also choose to provide the employee with a written letter of reference if agreed upon.

Step 2 – Notify Relevant Parties

It is important to alert individuals who need to know about the termination, such as relevant managers and leadership team members. Payroll and/or Accounting should be notified to coordinate the employee’s final pay.

For involuntary terminations, if the employee’s benefits entitlements extend beyond their notice period from the termination letter, the benefits provider must also be notified.

If an employee is resigning and depending on the circumstances, it can be appropriate to let their direct team and/or the greater company know. Let the employee know how and when you will communicate their departure to the rest of the team.

Step 3 – Transition of Work

Some employees have specialized roles or are holders of unique company information and processes. Addressing these factors and making a plan prior to their end date can ensure a smooth transition without losing any critical information.

For voluntary resignations, coordinate and discuss with the departing employee and their direct manger…

• Are there any files, documentation, and/or data that need to be transferred or granted access?
• Are there any software programs, social media platforms, or other account access or logins that are solely managed by the employee?
• Are there any projects, processes, or duties handled by the employee that others will need to be trained on?

Conduct meetings between departing employees and their team members with their manager present, depending on the need.

It may also be necessary to determine if the departing employee should have their access to confidential information revoked or limited during their notice period.

Finally, in all cases, the leadership team and manager(s) should discuss departmental and/or recruitment needs as a result of the departure.

Step 4 – Exit Interviews

Meant only for voluntary resignations, exit interviews are a highly recommended part of the offboarding process as they have many mutual benefits. They are a great way to collect constructive feedback about your organization from the departing employee. It allows employees to feel heard and acknowledge any outstanding issues before they leave. It provides employers the opportunity to thank them directly for their time and effort while in their role. Ultimately, exit interviews allow employers to gain perspective on areas for improvement within their organization, and to maintain a positive reputation within the community and positive relationships with departing employees.

Exit interviews should be conducted before or on the employee’s final day. It is also recommended that HR conduct the exit interview unless the employee has specifically requested another person and agreed upon by the leadership team.

Here are some examples of good exit interview questions:

• What is your reason for leaving the company?
• What could have been done to encourage you not to leave?
• Did your job duties turn out to be as you expected?
• Did you receive enough support from your manager to be effective in your role?
• Did you receive the training required to be effective at your role?
• Do you feel you were provided with appropriate recognition?
• What one suggestion can you provide that would make a positive difference in the company?

Step 5 – Securing Company Property and Assets

From a security standpoint, it’s critical to ensure all company assets, such as laptops and accessories, cell phones, or digital resources, are returned or locked.

Access to these items should be removed at the end of the employee’s last day if the employee is leaving voluntarily, or immediately following the termination meeting.

This also includes any critical systems or programs they had access to, and if they have a VPN. After disabling their email, setting up email forwarding to a manager or other delegate can ensure no correspondence goes missing. As previously mentioned, access until a certain date can be restricted during an employee’s notice period where required. Most Human Resources Information Systems (HRIS) software such as ADP continue servicing former employees after their exit date to allow access to important tax information.

Step 6 – Payroll and Benefits

Departing employees must be paid by the regular pay cycle following their last day and should include:

• All hours worked
• Vacation accrued
• Bonus earned, but unpaid
• Any additional amounts to be paid
• Termination pay and severance pay (if applicable)

Following this, the employee can be deactivated from the payroll system.

It is now time to generate and submit the employee’s Record of Employment (ROE) to Service Canada. Follow this link for a comprehensive breakdown of how to complete an ROE.

The benefits administration portal must also be updated with the employee’s last day.

Step 7 – Final Items

If the employee is resigning, some organizations choose to have public farewell messages or parties to acknowledge the departing employee on or before their last day, if appropriate.

It’s also recommended to keep a record of terminations in your workplace, including their start and end dates and the nature of the termination.

Finally, departing employees should be removed if listed on any website pages, staff lists, or internal directories.

Need Further Assistance?

At HR Performance & Results, our team of experts can help navigate specific terminations and answer any questions regarding offboarding. Contact us today!