Action List 21

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BUSINESS: The Ultimate ResourceApril 2003 Upgrade #7

Bloomsbury Publishing Plc 2003

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 theircareers, 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 thisinformation 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 inputinvites 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 leftthe others started to follow. What can I do to prevent talent fromhemorrhaging 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 andbecome 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 theirown benefits such as health insurance, vacations, pensions, and so on. However,


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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 Ihandle 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 certainpercentage 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.

TransitionDepending 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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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 showappreciation 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.


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For More Information

Book:

Bolles, Richard N. What Color Is Your Parachute? A Practical Manual for Job-

Hunters & 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

Documents

Action List 21