EXIT STRATEGY: The Right Way to Let Employees Go

The Right Way to Let Employees Go

BY JESSICA HARLING, BEHIND THE DESIGN

What do you do when people quit? You work hard for your company’s success. Part of that process is finding, hiring and training the right people. But what happens when they decide to move on? The way you handle the process of letting employees go can be nearly as important as the way you bring them on. Done right, it can reveal your strength as a manager.

People leave companies for many reasons, including looking for remote or flexible opportunities, poor work-life boundaries, issues with management, better pay and benefits, and lack of opportunities for advancement. “Company culture” is the all-encompassing buzz phrase that candidates use to describe the environment they’re working in. If you face a high turnover rate, you should look hard at yourself and your company’s culture. Are you doing everything you can to treat employees well and communicate their importance to your company so that they stay long? Even if you have created a positive environment rich with opportunities for your people to better themselves and your company, there will always be additional reasons why they might leave. You can’t prevent everyone from quitting, but you can take steps to make sure they leave well when they do. Step 1: Difficult Conversations

When a valued employee offers their resignation, it can cause a range of feelings. You need to regulate those feelings to maintain professionalism and positivity. If you see this time as an opportunity to improve your company and yourself as a boss, you can have some difficult conversations that might ultimately lead to growth. The first potentially difficult conversation is the exit interview. Many people skip this step because it’s uncomfortable. Some relegate it to a worksheet. However, if you can sit down with the exiting employee and have a real conversation, it may be just the thing that everyone needs to feel good about the situation.

Some great exit interview questions include:

■ What are your reasons for leaving? ■ Could I have done anything differently as a boss? ■ Did you feel you were trained and equipped to do a good job? ■ How would you describe the culture of our company? ■ If you could change anything about your job or the company, what would it be?

Again, regulate your feelings and don’t be offended if the person shares criticisms about your company or your leadership. If you handle this conversation well, you may even leave the door open for them to return to your company later.

The next difficult communication is letting the rest of your company or department know the person is leaving. You may choose to handle this through an email announcement, as part of a meeting or through an invitation to their send-off party. You may find it necessary to give some of the reasons for their decision to leave if you have been permitted to do so. Rumors may swirl, so it’s best to combat them with the truth. Even if it leaves you in a less-than-glowing light, honesty and transparency are valuable qualities that will prevail. Step 2: Self-Reflection

Now that you’ve had a chance to talk through your employee’s reasons for leaving the company, it’s time to reflect on what you did well and what you can improve in the future. It’s a good idea to ask yourself these questions regularly, not just when someone leaves.

Think about:

■ What kind of environment are you creating? Do you encourage professional growth? Do you encourage failure? An environment where failure is cheered rather than feared can be one of the most positive places to be. Mistakes can usually be fixed and client relationships can often be repaired, but if employees are allowed to fail, they might just succeed more often. ■ Are you accessible? Do you communicate well? Communication is more than instruction and correction.

It means listening and responding to your employees’ concerns as well. ■ Are your expectations clear? Are they rigid and unyielding or do you allow room for creative problem-solving?

Do you acknowledge that your way might not always be the best? ■ Do you equip and allow your people to do their jobs? Is your onboarding process solid? Do people understand their valuable role in your company? ■ Are you setting an example that you want your people to follow?

Step 3: Logistics

In addition to conversations and reflections, logistical details must be dealt with when an employee leaves your company. You may have a company policy that requires a resignation letter and at least two weeks’ notice. If you don’t get a letter when the employee resigns, be sure to get one for their file. Contact IT and make sure accounts and passwords are turned off at the appropriate time. Also, get in touch with HR and payroll to terminate salary and benefits.

If you haven’t already, conduct the exit interview and decide whether a celebration of the person’s time at the company is appropriate, either with a parting gift, a party or possibly both. Parting ways doesn’t have to be bitter. In fact, handled with dignity, respect, humility and grace, it can pave the way for future relationships to thrive in your company. Step 4: Transition

After tying up all the loose ends, it’s important to start preparing for the next phase of your business. Consider things like a new search to fill the shoes, making client introductions to a new account manager or repurchasing any lost or damaged supplies to prepare for the next onboarding in advance.

Most business owners miss this last critical step in ensuring the chapter has a conclusion. This tends to result in loss of business because of lack of oversight in finding a new home for the clients that employee took care of. Make sure the customer remains the focus during the transition. The bottom line is you need to have a process—just like onboarding a new team member— to make the transition successful. V

Jessica Harling is a fourth-generation window treatment specialist, the founder of Behind the Design and a leading expert in employee and process development for design organizations. Her specialty in recruiting, training and change management drives innovative and high-producing results while keeping your team inspired.

SPEAKER

Jessica Harling will speak during the “Building Sustainable Processes That Lead to Profits” session on Wednesday, April 19, at 10:30 a.m., “Training Behind the Design” at 1:30 p.m. and “Talent Attraction Strategies: Recruiting Rock-Star Employees” on Thursday, April 20, at 9 a.m.