Rethinking Employee Exits - A Provocative Call for Manager Accountability and a New Approach
by Kelly Lewis, Vice President at TurnkeyZRG
Today, many organizations tout their commitment to employee satisfaction throughout the employee lifecycle as their competitive edge in the war for top talent. Companies proudly showcase glowing employee testimonials, vibrant workplace imagery on social media, and bold promises of a supportive culture. However, a concerning trend is emerging. Consider this: have you observed a colleague suddenly vanish from the workplace without any communication? Or have you ever found yourself suddenly receiving bounce-back messages from an employee’s email address, with no warning or explanation about their abrupt departure from the company? These unsettling developments underscore a deeper issue and a troubling reality. As employees seemingly vanish from the workplace without communication, it reveals an apparent discrepancy between the organization’s stated commitment to support and the actual employee experience.
Occupying a vital role in the employee lifecycle, management/leadership—or people managers, as they are often called—are at the heart of the troubling trend of ineffective employee exits. This issue raises serious questions about the effectiveness of managerial oversight and its role in managing departures. Managers act as the custodians of workplace culture and employee relations, pivotal in alleviating or exacerbating this problem. Their approach to managing exits can either reinforce or undermine the organization's stated commitment to support. Managers who neglect to handle departures with the necessary care and transparency contribute to the growing phenomenon of sudden, unexplained exits, leaving remaining employees grappling with uncertainty. Neglect signals a troubling disregard for the contributions of departing employees, ultimately eroding trust and damaging the organization’s reputation. This lack of attention to the exit process, a pivotal touchpoint in the employee lifecycle, has cascading negative effects on team dynamics, productivity, and organizational health.
For decades, research has frequently debated the efficacy of exit interviews, often attributed to a limited viewpoint, explicitly in its ability to provide valid and actionable feedback. Meanwhile, their real value may lie in serving as a crucial final touchpoint that showcases organizational support and gratitude. Anchoring our philosophy within Bangerter’s signaling theory, exit interviews become pivotal in leaving a positive last impression between the company and the departing employee. Signal theory, originating from economics and biology, explains how parties with conflicting interests—who might be incentivized to deceive—can exchange accurate information. The theory explores mechanisms through which parties overcome information asymmetry and conflicting interests to communicate genuine, credible signals. In the context of exit interviews, signaling theory suggests that both departing employees and their soon-to-be-former employers use these interactions to convey signals of interest. Departing employees often aim to leave a positive final impression, while organizations strive to maintain a favorable relationship for potential future re-hiring and to mitigate negative word-of-mouth.
In a recent study by König et al. (2022) titled "Exit Interviews as a Tool to Reduce Parting Employees’ Complaints About Their Former Employer and to Ensure Residual Commitment," 164 German employees were surveyed to explore the application of signaling theory in exit interviews. The study found that participants who engaged in exit interviews reported more substantial residual commitment to their former employer and were less likely to complain. These outcomes were influenced by their perceptions of interpersonal fairness. The authors noted, “If an exit interview allows parting employees to voice their concerns, positive feelings they might still have for this employer, or whatever topic they like to raise, this should be perceived as a fair act on behalf of the employer.” The findings underscore the importance of fairness in exit interviews, which helps maintain employees' commitment to their former employers and increases the potential for them to return as "boomerang employees." This aligns with broader research on interpersonal fairness and impression management (Wilhelmy et al., 2016; Langer et al., 2019), highlighting the strategic value of exit interviews in fostering positive long-term relationships. Additionally, the study found that the likelihood of conducting an exit interview was related to the employee’s resignation style. This underscores the importance of viewing exit processes not merely as procedural steps but as strategic opportunities to demonstrate organizational support and care. Employers are advised to treat exit conversations as two-way interactions and carefully plan the exit phase to maximize its positive impact.
Building on this, Corey Tatel, Ph.D., and Ben Wigert, Ph.D., in their article "Enhancing the Employee Exit Experience Is Worth It," emphasize that the manner in which an organization manages the exit process can profoundly affect employees’ perceptions of the company. A foundational component to their argument was anchored in a recent study conducted by Gallup, which uncovered that only 1 in10 CHROs feel their company is highly effective at the “employee departure” stage of the employee experience.” Consequently, this results in inconsistent — but primarily negative— perceptions among departing employees. According to the article, when voluntary leavers were asked an open-ended question about how their manager treated them during the exit experience, “(l)ess than half of voluntary leavers report satisfaction with how their organization handled the exit process. Similarly, when asked how voluntary leavers were treated by their manager, one in four (24%) encountered rudeness, hostility, or a generally negative reaction, and 10% were met with indifference or a lack of acknowledgment.” One participant also shared, “(t)hey were not bothered at all and forgot it was my last day. They did not congratulate me or wish me well.” Employee departures can be challenging, but handling them well—or even just improving the process—can profoundly impact all other areas of your business.
Similarly, the article "Can We Still Be Friends? The Role of Exit Conversations in Facilitating Post-Exit Relationships" explores the impact of exit conversations on post-exit relationships and overall organizational health. Employees who leave for external reasons, such as further education, tend to communicate directly and receive positive responses from their managers, leading to a more substantial interest in maintaining a favorable relationship with the organization. Conversely, those departing due to internal dissatisfaction often experience multiple exit attempts and become increasingly direct in their communication, which can lead to negative sentiments if not managed effectively. Managers who fail to capitalize on these opportunities may inadvertently foster a "vendetta effect," where departing employees harbor negative feelings. This is particularly significant because negative exit experiences can undermine the employer brand, diminish internal team morale, and harm the organization's customer reputation. The 2019 Gallup research highlights the importance of this issue, revealing that employees with positive exit experiences are 2.9 times more likely to recommend their organization to others than those with negative or neutral experiences. Can We Still Be Friends leaves readers with the suggestion to train managers on conducting these conversations, which can help maintain positive relationships and mitigate adverse outcomes.
Each article contends that poor exit management can lead to adverse outcomes regarding external factors, including employees' unwillingness to boomerang back or brand reputation in the job market. What’s equally, if not more important, is how poor management is characterized by a lack of transparency and an indifferent mindset, which can diminish trust and morale among remaining employees and disrupt team dynamics. For example, if achievements are not recognized or a proper farewell is not conducted, employees may question the value placed on their own efforts, leading to diminished motivation and engagement. Additionally, poor exit management can heighten uncertainty among remaining employees. Without clear communication regarding the reasons for the departure or a comprehensive transition plan, staff may experience anxiety about workload redistribution and job security, which undermines trust in leadership and fosters a sense of instability.
Perceived unfairness is a central belief in an inadequate exit process, particularly when conflicts remain unresolved or departures are contentious. When exit procedures fail to address the underlying problems or are marked by apparent bias, the resulting atmosphere can become persistently negative, fostering a toxic work environment and yielding a sense of unfairness among employees. This perpetuating reality results from the feeling that the organization is neglectful in creating an atmosphere of well-being, ultimately failing to prioritize their needs. When management appears to pick sides or overlook clear signals of contention, remaining employees may perceive this as a disregard for their concerns and contributions. Such inequities breed resentment and undermine trust in leadership, exacerbating feelings of injustice and contributing to a deteriorated workplace culture. This erosion of trust can manifest as a divisive work environment where employees are wary of managerial intentions and increasingly disengaged, further damaging team cohesion and organizational effectiveness.
A hiring manager's unprofessional or hostile behavior toward a departing employee can further disrupt team cohesion. For instance, if a manager is overtly rude or dismissive, remaining employees might fear similar treatment, leading to a climate of distrust and diminished respect for leadership. Such behavior can also undermine team morale, as employees who witness the mistreatment may feel demotivated and disheartened. This lack of professionalism signals a broader issue with organizational values and respect, potentially harming the organizational culture and affecting overall employee engagement and retention. These expected outcomes of an immature exit process support the concluding results of Can We Still Be Friends?, which suggests that managers might benefit from training in conducting effective exit conversations, particularly with employees leaving for internal reasons.
It is essential to acknowledge that voluntary exits must be managed differently from involuntary exits due to the unique circumstances, potential legal implications, and safety concerns associated with forced terminations. Despite these differences, a human-centric approach remains applicable. Initially, it is imperative to handle all exits with transparency and respect. Providing clear and consistent communication regarding the reasons for departure while maintaining respect for the departing employee’s privacy can alleviate feelings of uncertainty or perceived injustice among remaining staff. Offering comprehensive support and resources, such as job search assistance, can cultivate goodwill with departing employees and potentially convert them into advocates for the organization. Reinforcing the organization’s commitment to its core values during the exit process strengthens trust and upholds the company’s reputation. Maintaining professionalism ensures that all actions are conducted fairly and with dignity. For current employees, addressing the implications of the exit through open dialogue can provide reassurance regarding job security and uncertainty.
Addressing common managerial failures during the exit process is crucial for fostering a truly supportive, trust-centered, and employee-valued workplace environment. To address these issues effectively, Human Resources (HR) must spearhead a comprehensive rethinking of employee exits, advocating for a bold call to action emphasizing manager accountability and introducing a fresh, strategic approach to exit management. To capitalize on this opportunity, HR must act intentionally and swiftly. Here are some things HR can do to show an intentional commitment to ensuring the exit process values and services all stakeholders inclusively:
Redefine the Exit Management Framework:
Manager-Centric Approach: Shift the focus from HR-driven exits to manager-led processes, with HR providing strategic support and oversight. Define specific roles and responsibilities for managers in managing exits, including communication, documentation, and follow-upwith clear specifics and expectations for voluntary vs involuntary exits.
Develop Comprehensive Training Programs for Managers:
Content: Focus on specialized training on conducting effective exit conversations, managing personal emotional responses, and handling sensitive situations with empathy and professionalism.
Frequency: Offer initial training for new managers and refresher courses annually as well as one-pagers following the announcement of departure.
Delivery Methods: Use interactive workshops, role-playing scenarios, and case studies to enhance managers’ skills and confidence.
Create Accountability and Support Structures:
Performance Metrics: Develop KPIs to evaluate managers’ effectiveness in handling exits, such as feedback from departing employees and team responses.
Support Mechanisms: Offer ongoing support through HR business partners or external coaches to assist managers with complex exits and provide additional guidance.
Creating an Alumni Network:
Benefit: Maintain positive relationships with former employees and leverage their potential value to the organization. By creating a structured alum network, HR can ensure that departing employees remain engaged with the company, providing long-term benefits to both the individuals and the organization. This initiative fits within the broader HR strategy of enhancing employer branding, fostering professional relationships, and improving talent management.
Ongoing Engagement: Regularly communicate with alums through newsletters, events, and networking opportunities to keep them connected and involved.
Establish a robust exit planning timeline where managers are the driving force. See example below:
Two Weeks Before Departure
Initial Exit Planning Meeting:
Objective: Discuss the upcoming departure with the employee to outline the exit process and address any questions or concerns.
Essential Actions:
Exit date and critical milestones.
Provide information on how the exit process will be managed. Confirm
Reiterate the organization's commitment to a respectful and transparent exit process.
Communication with Team:
Objective: Prepare the team for the departure and address potential concerns.
Essential Actions:
Plan a team communication strategy to announce the departure.
Ensure messaging is clear and respectful and maintains confidentiality where necessary.
Highlight the contributions of the departing employees to ensure a positive tone.
Alumni Engagement Enrollment:
Objective: Ensure the departing employee is enrolled in alum engagement programs.
Essential Actions:
Provide information about alum networks and future opportunities for engagement.
Encourage the employee to join the alum network to stay connected.
Day of Departure
Personalized Farewell:
Arrange a Personalized Farewell:
Organize a small farewell gathering or team meeting to celebrate the departing employee’s contributions.
Consider a personalized gift or token of appreciation that reflects their time at the company.
Draft a heartfelt farewell note or card from the team or leadership acknowledging the employee’s achievements and impact.
Conduct a Respectful Exit Interview:
Schedule a Final Exit Interview:
Ensure the exit interview is conducted in a private, comfortable setting.
Focus on gathering constructive feedback and offering the employee a chance to share their final thoughts. Record important feedback and insights shared during the exit interview for future improvements.
Express appreciation for their contributions and positive aspects of their tenure.
Completion of Administrative Tasks:
Finalize Paperwork and Final Review:
Complete all necessary exit documentation, including final pay, benefits, and return of company property.
Provide the employee with the necessary contact information for any post-departure inquiries.
Engage in a Positive Closure:
Organize a Final Walkthrough:
Offer the departing employee a final walkthrough of their workspace, allowing them to collect personal items and say goodbye to colleagues.
Ensure the process is smooth and respectful.
Facilitate Smooth Transitions:
Discuss and document any outstanding tasks or responsibilities to ensure a smooth transition for the team.
Alumni Engagement and Continued Connection:
Enroll Departing Employees in the Alumni Network:
Ensure the departing employee is enrolled in the company’s alum network or community.
Provide information on how they can stay connected and engaged with the organization.
Communicate with Current Employees:
Announce Departure:
Send a final communication to current employees, acknowledging the departing employee’s contributions and outlining any immediate changes.
Highlight the positive impact of their work and express appreciation on behalf of the organization.
Address Any Concerns:
Offer a forum for employees to voice any questions or concerns about the departure and address them promptly.
One Week Before Departure
Final Exit Review Meeting:
Objective: Confirm exit details and address any remaining concerns.
Essential Actions:
Finalize all exit paperwork and transition of responsibilities.
Schedule a feedback session, allowing the departing employee to select individuals for the feedback loop.
Hiring Manager Preparation:
Objective: Ensure hiring managers are prepared for the exit process.
Essential Actions:
Distribute a one-pager outlining the exit process and expectations.
Require managers to complete a quiz or test to confirm their understanding of the exit process and best practices. Establish a passing rate.
Feedback Loop Preparation:
Objective: Organize the feedback collection process.
Essential Actions:
Confirm the departing employee selected participant for the feedback loop.
Develop a structured feedback mechanism (e.g., surveys, meetings).
Communicate the feedback process and its purpose to the team.
Post-Exit Follow-Up:
Post-Exit Follow-Up:
Objective: Address any issues and ensure a smooth transition for the remaining staff.
Essential Actions:
Conduct follow-up meetings with remaining employees to address concerns and clarify changes.
Share insights from the exit process and feedback loop with relevant teams.
Continuous Improvement:
Objective: Use feedback to refine and enhance the exit process.
Essential Actions:
Analyze feedback from the departing employee and remaining staff.
Adjust exit procedures and training programs based on insights gathered.
HR Support and Review:
Objective: Provide ongoing HR support and review the exit process.
Essential Actions:
Ensure HR is available to address any remaining questions or concerns.
Review the exit process for effectiveness and make necessary improvements.
HR’s role extends beyond overseeing exits; it involves partnering with managers to develop and implement robust, empathetic exit procedures. This includes setting clear communication protocols, conducting thorough exit interviews, and integrating feedback mechanisms that genuinely address the concerns of departing employees. By addressing these areas, companies can bridge the gap between their stated values and the actual employee experience, turning exit processes into strategic opportunities to enhance workplace culture and strengthen their position in the talent market.