As an employer or an HR manager, at some point you’re bound to face
the inevitable. A RESIGNATION – Yes, resignations are part and parcel of
professional organizations, especially growing business. Sometimes, you might
be able to take a resignation in your stride. However, every now and then
you’re going to come across a situation where an unexpected resignation will
affect certain important processes in your company.
Dealing with resignations appropriately and systematically avoids unnecessary
stoppages or hindrances and may even work out in your favour. Here’s a step by
step process on how you should handle a resignation to smoothen the transition
for the employee and the company.
Dealing
with resignations appropriately and systematically avoids unnecessary stoppages
or hindrances and may even work out in your favour. Here’s a step by step
process on how you should handle a resignation to smoothen the transition for
the employee and the company.
1. Acknowledge the resignation.
As
soon as you receive a resignation from an employee (formal or informal), let
the employee know that you have received it and have begun the process at your
end. This calms some initial nerves and keeps both parties on the same
page. Once, you’ve done this, follow the steps below:
- The
reporting boss and the HR manager coordinate to decide if they want to
attempt to retain the employee or not.
- Arrange
for an informal meeting where you can discuss with the employee if there
is any way you can retain him. Otherwise, confirm the notice period,
handover process and any unfinished projects that you would want completed
before the employee’s exit.
- Also,
determine whether you want to replace the employee with a new hire. In
case you need to hire someone, it’s best to get started with that process
as soon as possible.
2. Negotiating with the employee
If
you think that the employee is worth going that extra mile to retain, then
you’re going to need to understand what it’s going to take to retain him.
Usually, a hike or a promotion will make the employee rethink his
decision. However, if the issue is deeper and he/she cannot be convinced,
then it’s best to show support towards their decision.
3. Notice Period and other formalities
Once
the resignation has been mutually accepted, discuss what would be the last day
of working for the employee. In most cases, notice periods are already decided
when an employee joins. This has to be adhered to unless the employee and
employer mutually decide otherwise.
Notice
period buyouts are common these days and hence it’s a good thing to be prepared
for that as well. The norm is usually a day’s salary for each day of the notice
that the resigning employee doesn’t serve. On many occasions, the buyout
is done by the new company that the employee would be moving to. The right to
decline the buyout remains with the employer but shouldn’t be exercised unless
absolutely necessary.
Here
are a couple more things you may want to discuss while confirming the notice
period:
4. Pending Projects
If
there’s anything on the employees plate that you would like to see completed
before he leaves, make that clear. This keeps the employee from getting
lethargic during his final days and ensures delivery of work. However, do
make sure that you don’t overburden the employee with unrealistic deadlines.
5. The handing over process
The
work handled by the employee resigning of course needs to be taken care of once
he is gone. Ask him to pass on his access and tasks at hand (wherever
relevant) to a colleague or the new hire.
6. Notice period formalities
Depending
on your company policy, you may have separate leave policies and access for
employees on their notice period. It’s a good idea to reiterate them to the
employee when you have the initial meeting.
7. The Exit Interview
Close
to the end of the notice period, it’s important to conduct an exit interview to
further smoothen the exit of the employee. Having this interview close to
the last day, helps the employee be bolder about his views. While this may also
seem like a formality, when done systematically, it can answer some crucial
employee management questions.
Here
are some questions that you should ask while conducting an exit interview.
- Why he/she has decided to leave?
- What could you have done to avoid the resignation?
- Would he/she recommend your company to a friend?
- If Yes/No, then what are the reasons?
- Did he/have the tools to carry out their job well?
- What he/she liked most about the company?
- What he/ she disliked most about the company?
The
answers to these questions should be documented for analysis later.
Keeping a log of the exit interview responses will help in identifying HR
issues and reduce attrition rates.
8. Relieving Formalities
Finally
before the employee completes his/her last day, ensure all exit formalities
have been taken care of. You may want to create a process where the
employee needs to get an acknowledgement from relevant superiors before he
leaves. This ensures that all pending tasks have been completed and the necessary
handovers are done.
Also,
ensure that all items given to the employee have been returned. Here’s a quick
checklist of things you may have to take back before he leaves.
- Laptops
- Keys for Office/Drawers etc.
- IDs and Access Cards
- Company Cell phone
- Company Credit Card
As an extra step, it would also be nice gesture to mail employees
on their last day wishing them luck. This would leave the employee with a
positive image of your company.
9. F&F and relieving letter
It’s
finally time to process the employee’s full and final settlement. Here’s
a quick guide to what you need to include in it
- Unpaid Salary including LTA, reimbursements and bonuses
- Encashment of leaves that haven’t been taken
- Gratuity, if applicable
- Pension, if applicable
Once
the amount has been processed, send the employee his/her relieving letter.
Don’t forget to mention the tenure, designation and compensation in the letter.
Following
a set procedure, avoids unnecessary delays smoothens the transition for the
employee and for you. Try to keep things professional so that there are no
burned bridges at the end of the ordeal.
