What to do when an employee resigns

Whether they’ve been a burr under your saddle or the best worker you ever hired, properly handling the situation when an employee resigns is very important.  Here are some actions that should become standard operating procedure when someone is leaving your company:

  • Dig up their contract: Familiarize yourself with their start date, under what provisions did they work, is severance pay promised and, if so, how much? Is there a time period in which they are obligated to continue working? Does the contract promise written notification from the employee about their resignation? Follow all contractual obligations carefully and be sure to seek advice from your company counsel for areas that seem unclear.
  • Check if there is a non-compete agreement: You don’t want the employee jumping ship and taking their talent (and your company secrets) to your competitor. Have a copy ready to show the resigning employee and explain to them again the provisions that bind them under the non-compete agreement.
  • Get the resignation in writing: Make sure the document is dated and includes mention of any “notice period.” This will help avoid disputes in the future.
  • Write a letter of severance: Putting on paper that the employee voluntary resigned (and wasn’t fired) will also help prevent any future legal problems. Have a template written (and approved) by your legal counsel. Use it for all resignations.
  • Calculate which is the “better deal” for your company: Is it more advantageous to require the employee to finish their entire notice period or to pay them off for that time period and let them go early. They may sow seeds of discontent among the rest of your workforce if they stay or, conversely, their presence may be vital to completing important projects.
  • Discuss how they’ll say goodbye: You may want to handle the announcement of their leaving formally, instead of just letting them tell their close colleagues and allowing the rumor (sometimes distorted) blaze like wildfire through the ranks.
  • Ask for a written update of their work: Have the employee write as detailed a synopsis as necessary about whatever they’ve been working on to make the transition smooth for whomever will be taking their place. Have them also include information on all documents, passwords, research, contacts, etc—anything to provide a road map to their successor.
  • Set up an Exit Interview: After you’ve received all the information listed above, compile any questions you, their team leader, or their supervisor may have and ask for clarification at the Exit Interview. You don’t want to be calling them at their new job to find out where they left a certain document.
  • Collect all company property: Keys, computer drives, laptops, company cars, parking passes, tools, uniforms–all must be returned to you before you sign off on the company’s final payment.
  • Calculate their final payment: Make sure you are paying them for any owed overtime or bonuses or unused vacation time. If you are paying off their notice period, be sure that your accounting department is aware of that. Inform the employee when their benefits and insurance coverage will stop (and give them information on the federal COBRA program.)
  • Offer a reference if asked: If the employee has been a good one, be generous with your reference. There is no need to burn bridges. The world is smaller than it used to be and you are likely to cross paths with the former employee again—if only in cyberspace.
  • Mean it when you say “Fare Well”: Unless the employee was a thief or destructive, there is no need to have follow them to clean out their desk or have a guard escort them to the front door. Make a point to see them on their last day, shake their hand, and wish them well. They worked hard for you and deserve to know you appreciated their efforts.

Turn to Arrow Staffing to replace a valued employee with one who will become an asset to your company’s future.

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