Chapter 5

Turnover

  • Employees will leave your organization for many reasons and a certain level of staff turnover is healthy. But, handling departures badly can cause problems for everyone involved ― and leave you with more than just a vacancy to worry about.
    Did you know?
    Most states have laws addressing when and how final wages must be paid. Some states require that you issue a final pay check on an employee’s last day of work. Check the laws in your local jurisdiction.

    WHAT TO AVOID

    • Failing to address (or even recognize) workplace issues that could lead to an employee leaving
    • Firing an employee on the spot in a moment of anger
    • Having no cross-training or succession plan in place when an employee announces their retirement
    • Failing to update the payroll system and benefits carriers, so an employee continues to be paid or receive benefits

    Potential costs of getting it wrong

    • Wrongful termination lawsuits
    • Overpayment or underpayment of final wages or benefits
    • Reduced remaining employee morale from unresolved or mishandled employee exits
    • No one is cross-trained to temporarily or permanently fill the role

    What good looks like

    • Employee issues are recognized and addressed by regularly requesting and acting on feedback
    • Automated systems work with each other to ensure former employees only get benefits they’re entitled to
    • Easy ability to revoke former employee access to key systems
    • Having a cross-training and succession program in place, at least for critical processes and positions
    • Having a record of previous job applicants and passive candidates, who may be interested in vacancies as they open, so you can expedite the replacement process