BUSINESS: The Ultimate Resource

April 2003 Upgrade #7

ACTIONLIST
Handling ResignationsThe Employers Perspective
Getting Started
Although it is disappointing to lose key people, resignations give companies a chance to plan ahead and recruit people who can contribute to the organizations growth. Personnel shifts can be a catalyst for taking a fresh look at whats working and what isnt, and deciding what kinds of changes would be most productive. From the employees standpoint, resignations allow people to move on in their careers, learn new skills, and take on new responsibilities. An individual leaving a company is not necessarily withdrawing his or her loyalty or influence over its future direction. Indeed, past employees may well be instrumental in instigating joint projects or ventures that will change the fortunes of their former organization.

FAQs
I manage a key individual who has resigned. How can I convey this information to her team without risking a drop in morale? Convene the team, along with the person who has resigned, to discuss the resignation and its implications. Showing your concern about their feelings and asking for input invites team members involvement and gives them a sense of control. It will also give you an opportunity to discuss any structural or resource issues arising from the departure. I run a team of specialists who are hard to replace, and as soon as one left the others started to follow. What can I do to prevent talent from hemorrhaging out of the company? Take your teams exodus as an opportunity to identify and resolve problems. Are terms of employment better elsewhere? Have conditions in your organization deteriorated without your being fully aware of the slippage? Conducting exit interviews should help you identify your weak points and structure improvements. Invite remaining staff to participate in the planning. This might be a good time to review your companys medium- and long-range strategic plans. Would reorganizing or consolidating departments help reverse the disaffection? Are there others you can promote into these vacancies? Or will your company need to make changes in order to attract new talent? A member of my team has asked to leave full-time employment and become a contractor to the business on a project basis. Is this a good idea? Organizations are increasingly turning to contract employees to give them more flexibility and cut direct payroll costs. In many instances, contract employees are responsible for the cost of their own office space off-premises as well as funding their own benefits such as health insurance, vacations, pensions, and so on. However,
Bloomsbury Publishing Plc 2003

BUSINESS: The Ultimate Resource

April 2003 Upgrade #7

contract employees will often charge more for their services than they received in salary. The key issues are costs and benefits. Another part of the equation is how you manage the situation with other team members to make sure theres no ambiguity about how work is to be done and who has responsibility. I was handed a resignation by someone whom I was happy to see leave. However, hes changed his mind and asked to stay on the job. How do I handle this? If you feel strongly that your organization would be better off without this person, youre within your rights as the supervisor to deny his request. If you think the person might be suited for a job elsewhere in your company, you might advise him to discuss his prospects with the human resources department.

Making It Happen
Be Prepared Most organizations value a stable work force. Inevitably, however, a certain percentage of your employees will leave every year, taking their skills and experience with them. Handling every one of these departures well is very much in the organizations interest: every former employee is a public witness to the character and culture of your company. From the employers perspective, processing an employee out of the organization requires specific steps in order to satisfy policy and legal requirements. Departing employees have needs, too, though, and its good practice to make the procedure as efficient and straightforward as possible for the person leaving. Acknowledge the Employees Intention to Leave Verbal notice may be acceptable, but its usual for a resignation to be submitted to the manager in writing. Forward a copy of the letter of resignation to the human resources department so the process of removing the employee from the payroll and preparing a final account of benefits begins promptly. Confirm the Leaving Date Notice periods vary according to the position and the seniority level of the departing employee. If the person who is leaving wants to negotiate an early departure, you need to consider your existing resources and the volume of work pending. If work priorities allow, you may be willing to go along with the request. Transition Depending upon the nature of the work that the departing employee was engaged in, you need to plan for a smooth transition of projects and responsibilities. This might range from a simple plan developed jointly by the employee and his or her manager to negotiations involving a broader group of people who will be affected by the resignation. A transition program may be quite involved. It takes times to brief coworkers, tie up administrative loose ends, and perhaps instigate some training in areas where special skills are required. If the organization is reducing its work force by natural attrition and the employee isnt going to be replaced, the persons responsibilities need to be reallocated.

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BUSINESS: The Ultimate Resource

April 2003 Upgrade #7

If the person who is leaving has built a network of relationships important to the organization, you need to plan for continuity. If he or she has developed personal relationships with clients or suppliers, these are likely to continue. Personal loyalties may leave your organization vulnerable to loss of business, especially if the former employee becomes your competitor in the marketplace. Having clients or suppliers meet with the employees replacement, perhaps with the departing employee present, can help maintain continuity in key relationships. Conduct an Exit Interview Its good policy to schedule exit interviews, usually conducted by a member of the human resources team. Invite departing employees to discuss their job, their reasons for leaving, and any other subjects of concern to them. The exit interview should be a positive experience, even when the employee uses it to air grievances. Listen carefully to what each employee tells you; you may get new information or confirm previous reports of dissatisfaction with company policies or practices. Let exit interviews be learning experiences that clue you in on making the organization a better place to work. Other Considerations It is sometimes appropriate to ask an employee who resigns to leave the premises immediatelyfor example, when the employee has access to confidential information and is leaving to join a competitor, there is risk of disruption or sabotage, or the work has dried up. In these cases its usual to pay the individual a severance allowance based on two weeks notice or some other negotiated criterion. Leaving a jobeven under the best of circumstancesis not always comfortable; handling someones departure sensitively makes the experience easier. In most instances, its customary to host a farewell event of some kind and give a gift to show appreciation for the employees work.

Common Mistakes
You Take it Personally Taking a resignation personally can lead to distress on both the employees and employers side. People leave their jobs for a wide variety of reasons; resigning isnt necessarily an act of betrayal. Try and be open to hearing the reasons behind the decision and exploring the options, if there are any. You Ignore the Implications of the Resignation Ignoring the reality of someones departure can leave you vulnerable. Everyone involved needs to pitch in to make sure that the leaving causes as little disruption as possible, so try bringing those affected by the move together to create a smooth transition. Youre Pleased the Person Is Going, and You Show It No matter how unlikable, annoying, disruptive, or incompetent the employee has been, try not to show your delight that he or she is leaving: its disrespectful to the departing employee and demoralizing for those who remain. Behave with professionalism from the moment you receive the resignation throughout the exit process, and leave your ego to one side.

Bloomsbury Publishing Plc 2003

BUSINESS: The Ultimate Resource

April 2003 Upgrade #7

For More Information

Book: Bolles, Richard N. What Color Is Your Parachute? A Practical Manual for JobHunters & Career-Changers. 2002 ed. Berkeley, CA: Ten Speed Press, 2001. Web Sites: Business Guidepowered by FindLaw for Business: cobrands.smallbiz.findlaw.com/hr/firing/articles.html Business Town.com: www.businesstown.com/people/firing.asp The U.S. Equal Employment Opportunity Commission: www.eeoc.gov

Bloomsbury Publishing Plc 2003