What is Employee Exit Management Benefits + Complete Process
Employee exit management process refers to the procedures followed on the exit of an employee due to voluntary resignation or termination from the term of employment. It is a vital process for the HR department as the organization’s belongings are to be retrieved before the exit of the employee.
Employee exit management process refers to the procedures followed on the exit of an employee due to voluntary resignation or termination from the term of employment. It is a vital process for the HR department as the organization’s belongings are to be retrieved before the exit of the employee.
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What is Employee Exit
Management? Benefits
& Complete Process
What is Employee Exit Management?
Employee exit management process refers to the procedures followed on
the exit of an employee due to voluntary resignation or termination from the
term of employment. It is a vital process for the HR department as the
organization’s belongings are to be retrieved before the exit of the
employee.
The significance of offboarding management specifically lies in
smoothening the process of exit of employees to retain the goodwill of the
company. It lays an example for the new hires that, the company values
human resources.
Exit Management helps the HR department in organizing data handed over by the leaving staff and
synchronizing the same to conveniently utilize it in time of contingencies. The importance of managing
offboarding is not only essential but also beneficial. Let’s see the highlights in a few simple steps:
• Organize employee data management
• Retrieve official data from exit employees
• Reduce the risk of data theft
• Gather insight into the prevailing work culture
• Prompt necessary changes for the future growth of the organization.
• Contribute to strategic planning framed by the management
• Enhance employee experience
• Create a healthy impression on employee minds
• Gain constructive feedback from employee’s journey.
After we got a clear knowledge of what exit management justifies and how it benefits management, let us
contemplate the procedures followed.
Process of Exit Management
The Exit management process is the synchronized steps followed by the HR management during the exit of
an employee and it includes the following:
1. Addressing the Resignation
The first and foremost process of offboarding starts with addressing the letter of resignation sent when an
employee resigns.
It exemplifies the management’s activeness toward cautious handling of such sensitive circumstances and
empathetically reaching a befitting solution that would be beneficial for both organization and the
employee.
Being decisive about the acceptance or rejection of the employee resignation letter not only provides time
to come up with appropriate solutions to retain resourceful staff but also showcases the promptness of
management.
It also bolsters the departing employee’s emotion that his presence mattered. It can prove to be a vital
initiative in enhancing employee morale and can contribute to them being a resourceful asset till the end.
2. Automating Offboarding
The next step in the procedure is digitalizing the process of offboarding. Offboarding by
nature is tedious and lengthy, involving a bulk of paper work and documentation.
So, it is necessary to automate the process to avoid complexities and laboriousness.
Automation is a systematic way to manage the exit process by eliminating the manual
effort in the documentation and evaluating payroll dues to be cleared during the full and
final settlement of the departing employee.
Furthermore, automating the employee exit management process fastens the entire
process of offboarding, thereby yielding a healthy exit of employees on a good note.
Another vital factor in automating offboarding includes error-free and glitch-free
assessment of data and records forwarded by the departing employees.
The saved data in cloud-based software can be accessed by the line managers and can
also be transferred to the replacement (new person) of the leaving employee without
any hindrance.
3. Preparing Checklist
The succeeding procedure after digitalizing the exit management process is department wise
exit checklists preparation.
It implies a detailed list of all the equipment, assets, and official login access provided to the
departing employee during the time of onboarding as well as the employee’s name, job role,
department, etc.
A business consists of various confidential chattels and an employee is an integral part of the
business makes it crucial for the business to gather all the belongings (i.e. knowledge and asset)
before bidding permanent goodbye to the employee.
To take handover of data and documents, management prepares a checklist of all the assets
and access existing with the employee after getting the employee resignations. The exit
checklist helps management check the returnable in a synchronized way without missing
anything.
It also assists other wings (i.e.- administrative, IT, and finance) to stop the access of official logins
and initialize final payment thereafter.
4. Ensure Transferring Knowledge
All the documents and responsibilities acquired by the exiting employee during
the tenure of his employment have to be retrieved back before his departure.
Employers should ensure adequate transfer of all the exit data to the new
employee who will serve as a replacement for the leaving employee.
Automation in offboarding will help store all the transferred knowledge in the
software so that it could be accessed anytime, anywhere, and reduce the risk
of data theft. Not all the departing employees leave the company on a good
note; in such cases, there prevails a risk of non-transfer of data before
departure.
To avoid such, the exit management process should be devised in an
employee-centric way and the employers should maintain cordial relations with
the leaving employees so they remain resourceful till they depart and after.
5. Deactivating Official Access and Recovering
Equipment
After transferring responsibilities and knowledge, access
from all the official logins allotted to the employee
during his employment is withdrawn.
Along with that, there are several official equipment or
gadgets (such as mobile phone, laptops desktops,
tablets, etc.) that were provided to the employee and
are necessary to be retrieved before their departure.
Possibilities persist of employees not staying in touch
after their departure (may it be intentionally or
occupied with other professional commitments). To
avoid such kinds of encounters, management needs to
stop the official access before the person exits.
It is a crucial step to be handled with caution because
it can create a negative impression on the employee
while widening the risk of losing data.
6. Communicate Departure to Other Departments &
Completing Paper Work
The manager of the concerned department of the
leaving employee is required to inform other
departments such as IT, Administration, and Finances,
about the exit date. The aforementioned departments
are needed to be informed because IT will block
access to official IDs, so the misuse of accounts can be
eliminated.
The Admin will collect all the official gadgets and
documents before the departure and approves the
finance wing to clear dues. The signing of official
documents before departure to not give something a
miss and authenticate the handed-over documents is
an important step in the offboarding process.
7. Conduct Exit Interview
Exit interviews are one of the vital steps in the exit management process because it gives HR insight into the
professional voyage and prompts the necessary alterations to be adopted by manager for fixing the flaws if any.
The Exit Interviews process includes:
• Preparing an exit checklist on the details of facts to be known from the departing employee.
• Preparing survey forms to validate authentication of the mentioned asset (document and knowledge persisting
with the employee) with actual to avoid complexities.
• Clarifying the exit reasons to know what are the loopholes to be closed and understand exit reasons.
• Conduct a session to gain constructive feedback from the employee during the employee’s journey in the
company and understand the exit analytics of the company.
• Communicating retention strategies and understanding the exit reason
• Wishing the employee for career growth in the future.
The exit interview gives exit analytics on the frequent reasons for employee turnover so that changes can be made to
reduce the same.
8. Full and Final Settlement & Clearances
Finally, the management should ensure the handover and approval of official belongings
appropriately with proper authentication from various departments so the administrative
department issues relieving letter.
After the clearance is initiated, the final payment is released which includes due date
salary, employee dues, and additional cost incurred, such as provident fund clearances,
etc. Automation helps in smoothening the entire exit process of offboarding processes
and gives a pleasing experience to both the exiting employee and the administration.
• Conclusion
The exit process is not only vital but also exhibits the how well-structured management the
companies possessed. It leaves an unforgettable milestone impression on the exiting as
well as existing employees about the company’s work culture.
• You can find more interesting things on these sites mentioned below :-
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• LinkedIn:
https://www.linkedin.com/company/pocket-hrms/
• You tube:
https://www.youtube.com/channel/UCdPGR7FRMb6zRXh4o16j3hQ
• Instagram:
https://www.instagram.com/pockethrms/