Authors: Pat Romain Jaime McNair
The way an organization treats individuals on the way out is just as important as how they treat them on the way in. Preparing thoughtful, empathetic termination practices aren't just the right thing to do — they allow HR professionals to support management in defining a strategic business advantage. Investing in consultation around best practices for exiting and providing respect and career transition support to departing employees pays off in boosts to brand, reputation, employee loyalty and future hiring efforts. Dismissing employees with empathy, kindness and support demonstrates a company's commitment to their workforce and positions them as an employer of excellence.
Deciding to let employees go is never easy, but how HR professionals support management in handling layoffs can have long-term effects for organizations and employees alike. Whether preparing for mass layoffs or individual exits, building respectful, compassionate exit plans and communication strategies is crucial to best practices around exiting employees.
HR professionals who assist managers in understanding the importance of empathy — of putting yourself in someone else's shoes —in their exit strategies ensure that best practices are adhered to. When planning teams remember how they would wish to be treated under similar circumstances, they preserve the dignity of departing employees, maintain employer trust for exiting and remaining employees alike, and safeguard their organization's brand strength and public reputation.
The risks of poorly executed terminations
There have been unfortunate examples of companies issuing abrupt or inconsiderate layoff notices that lacked sensitivity or adequate support to exiting employees, such as employees learning about layoffs when they're locked out of company accounts. Additionally, some leaders have insensitively posted on social media about how "difficult it was" for them to make cuts, failing to acknowledge the impact on their departing staff.
Employee exits that lack demonstrated empathy and support for an organization's outgoing workforce can severely damage its image and brand.
Reputational damage and public backlash
In today's digital age, employees regularly take to websites such as Glassdoor and Indeed and to social media platforms such as LinkedIn, TikTok and Instagram to share layoff experiences — shaping public perceptions of an organization's leadership, values and reputation. When departing employees share negative, indifferent or impersonal exiting experiences with a company, it can result in the loss of consumer trust and investor concerns.
Loss of institutional knowledge and organizational disruptions
Many organizations release employees without fully considering their contributions and potential for redeployment. As a result, they lose valuable knowledge about internal processes, company culture and client relationships — along with loyal staff. The loss of these subject matter experts can significantly disrupt business continuity and hinder the successful execution of projects, systems and client engagement.
Unexpected costs
The cost of poorly handled terminations show up in other unexpected ways long beyond the exit meeting. News of poorly handled layoffs can impact an employer's remaining and future workforce. One report showed that 41% of remaining employees experience decreased job satisfaction when outgoing employees aren't well supported, along with similar drops in company commitment and productivity.* HR and management then have to spend additional hours addressing team morale and productivity challenges and increases in voluntary resignations from existing staff.
Impacts to an employer's brand may also reduce their ability to attract future talent, raising costs due to with length of time to fill positions and to train new, less skilled employees.
Best practices for exiting employees
When HR professionals provide management with planning and support for empathetic, human-centric exits, companies benefit from smoother workforce transitions, stronger employer banding, higher retention rates and the increased ability to attract future talent. A well-considered exit plan ensures that managers are prepared to handle difficult conversations and decision announcements with care and compassion. Employing best practices for exiting employees that minimize the potential for negative impacts makes good business sense.
Consider reskilling programs
Before finalizing layoffs, HR personnel can work with leadership to assess whether talented, loyal employees can be retrained or reassigned to other roles to retain skills and company knowledge. Considering upskilling options that retrain existing employees minimizes disruptions and negative impacts of layoffs. By retaining committed employees, companies also maintain company process and culture knowledge, business continuity and efficiency that help to decrease unexpected costs.
Develop a solid communication plan
If downsizing is inevitable, HR professionals can support leadership in developing exit strategies that include open communication, expressed appreciation for employees' contributions and clear, empathetic messaging about severance details and additional supports for both departing and remaining employees.
Engaging in best practices that include thorough communication planning and preparation ensures that exits are handled with consideration and sensitivity and maintain departing employees' dignity and trust in the employer.
Offer career transition supports
Offering departing employees career transition services shows respect and commitment to the wellbeing of an organization's workforce and maintains positive employer perception and reputation as well. These services are a proven, cost-effective way to demonstrate that an employer prioritizes the dignity and career continuity of their departing employees.
According to a 2022 CareerArc survey, 72% of employees who received career transition services had a more favorable impression of their former employer, even after being laid off. Companies that connect departing employees to job coaching support for career assessment, networking and interview preparation and the development of tools like resumes, cover letters and LinkedIn profiles, position themselves as industry leaders in talent management and human-centric business.
Takeaway
An organization's approach to handling employee departures is as crucial as their onboarding process. Implementing compassionate and well-considered termination practices not only reflects ethical standards but also empowers HR professionals to collaborate with management in establishing a strategic business edge.
By investing in expert consultation for best exit practices and offering respect and career transition support to departing employees, companies can enhance their brand, reputation, employee loyalty and future recruitment efforts. Demonstrating kindness and support during terminations showcases a company's dedication to its workforce and can also elevate its status as an employer of choice.
