Exit: Step 9 of the Employee Life Cycle

If you are new to our Employee Life Cycle series, click here to go back and begin at Step 8 Measure, or read on for Step 9 Exit.

Exiting, an important yet neglected step in the employee life cycle  

Generally, when organisations are discussing the employee life cycle the primary focus is towards the steps of employee on-boarding and engagement. Unfortunately, limited attention is given to the processes needed to successfully exit an employee out of an organisation.

According to Aberdeen research, only 29% of organisations have a formal exiting process to transition employees out of an organisation. 

Challenges and cost of employee exiting 

Although it may seem counter-productive to focus on employees exiting a company, exiting can have a dramatic impact on organisational growth and performance. 
The total replacement costs associated with employee turnover can be as high as 150%–200% of an employee’s annual salary. Deloitte, 2015
Without clear processes to document key events, organisations risk finding themselves unable to dispute unfair dismissal claims. A structured process is vital to ensure the exit process is legally compliant for every exiting employee. 

Terminations without tears 

Whether the employee is leaving voluntarily or not, exiting is a delicate and important process and can be an uncomfortable experience for the employee and HR. 

If the termination process is not undertaken correctly, the organisation could potentially be exposed to a variety of claims, including unfair dismissal, discrimination, workers’ compensation claims for psychological injury, claims of bullying and/or harassment. 

Right exiting processes, right outcomes

Interestingly, 70% of organisations focus solely on managing the exiting process of voluntary separations. Involuntary separations and retirees cannot be neglected, as they are still a security and compliance risk. Each type of exit needs its own standard process to meet the exiting requirements of the organisation and the entitlements of the employee.

Moderns systems for today’s workforce

Employee Metrics can help organisations ensure all facets and legal requirements of exiting procedures are streamlined into operational practices. Once the process is set uporganisations won’t have to worry about legal compliance issues again.

Step 9: Exit: Reduce the impact of resignations and exit non-performers legally

Employee Metrics diagnostic platform walks you through a detailed assessment, supported by an experienced HR Consultant. It generates a detailed report of your position across the 9 steps of the Employee Life Cycle.

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