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
This guide provides general information and should not be construed as legal, HR, financial, insurance, tax or accounting advice. You should consult with your own legal counsel, human resource, accounting or other professional advisor for circumstances pertaining to your business.