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How To Handle An Employee Resignation

By Conor McMahon - Nov. 13, 2022
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It is rarely an easy situation to handle an employee’s resignation. Even if you are parting on good terms, the loss of an employee results in a transition process that requires careful execution.

The best way to handle an employee’s resignation is to be prepared for any situation. Luckily most employee resignations follow a similar process you can use to effectively handle the change.

Key Takeaways:

  • To handle an employee resignation first inform human resources, then obtain a resignation letter, and immediately work on a transition plan.

  • Have a transition plan that transfers all necessary responsibilities and knowledge and organize any necessary tasks while you look for a replacement.

  • Be professional when an employee informs you they are leaving, don’t take it personally, and focus on moving forward.

  • Having a plan ahead of time will save you from some of the stresses that come with an employee resignation.

How To Handle An Employee Resignation

What To Do When An Employee Resigns

  1. Inform H.R. Once you learn that your employee is leaving, contact your human resources department. They will be able to help you as you work through the transition.

  2. Document. When an employee informs you that they’re leaving their job, get that in writing. Ask for a resignation letter, which can take the form of an email, so that you have proof the employee terminated their job voluntarily. A resignation letter usually states an intent to leave, a two-week notice, and a final day of employment. If you cannot obtain a resignation letter, document the date of separation and why the employee left. Then keep this document in the employee’s file.

  3. Arrange last day of employment. Figure out with your employee their last day of work. Normally, this will be two weeks from when they give you notice, however, there is no legal requirement, and the employee may leave before or after the two-week time frame.

  4. Conduct a transition plan. Now that you know your employee is leaving, you want to conduct a transition plan that transfers the responsibilities and knowledge of the employee to others. Unfortunately, you will likely not have a replacement ready, which means you and the rest of your team will need to handle the employee’s workload in the meantime.

    Work with the employee to figure out what exactly needs to get done and any other insights that will help you move forward. Ask your employee to list their day-to-day responsibilities and any current projects or loose ends that need to be managed.

  5. Figure out if/when you need a replacement. Depending on the responsibilities of the employee, you may need to find a replacement immediately. Figure out a date when you need to have a replacement. In any case, begin to look for a replacement by writing a job description and reaching out.

  6. Notify employees and other contacts. Once you have a plan and have begun the transition process, inform the rest of the employees. Make sure to keep your tone positive and professional. If the employee has any professional contacts, reach out to them so that they know to reach you instead if they have future questions.

  7. Schedule and conduct an exit interview. Use the exit interview as a learning moment. Learn why exactly the employee is leaving. Allow your employee to be honest so that you can learn how to improve the company moving forward.

  8. Provide benefits information. Depending on the status of your employee, you may have benefits to pay out or arrange. This can include benefits such as vacation days or healthcare plans. Use your employee handbook and H.R. to make sure to cover all benefits.

  9. Comply with laws and regulations. There may be certain state laws you need to comply with when handling an employee resignation. Some states require further documentation, while in all cases you want to make sure to not hold yourself or the company responsible for any legal infractions.

  10. Return company property. Arrange to have the employee return all company property such as ID badges, company credit cards, computers, cell phones, cars, and other accessories.

  11. Remove employee from internal systems. For security reasons, work with your I.T. department to remove the employee from the company email, as well as other internal systems that they may have access to.

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Tips For Handling An Employee Resignation

When you handle an employee resignation, it’s important to do your best to keep the transition productive, professional, and positive.

Consider the following tips when handling an employee resignation:

  • Plan ahead. Have a resignation plan ahead of time so that you know what steps need to be taken. You may need to make adjustments, however, having a plan acts as a framework to guide you through the process. A highly detailed plan will help relieve some of the stress you may feel.

  • Be professional. Speaking of stress, you may find handling an employee resignation stressful. This is completely normal. You may feel caught off-guard or frustrated that you have to handle and delegate new responsibilities. While these feelings of stress may be normal, it is important for you to not take the situation personally. Be professional and focus on moving forward with your team.

  • Praise the employee. Regardless of reasons for their leaving, focus on the positive aspects of the employee. You do not have to go overboard, but you want to show respect as the employee moves on to their next stage in life.

  • Be mindful of your other employees. An employee resigning can have reverberating effects on your other employees. They may feel unhappy or stressed by the additional workload. They may feel insecure about their jobs. They also may be indifferent. There is no way to tell unless you observe and ask.

  • Begin the transition process immediately. When your employee informs you they are leaving, you should take all the steps you need to take as soon as possible. In particular, while you still have the employee around try to learn from them as much as possible. Figure out what needs to get done, who needs to be informed, why the employee is leaving, and what can you do to improve the company.

What Are Reasons an Employee Would Resign?

There can be all sorts of reasons why an employee may resign. Hopefully, in the exit interview, you learn what the causes were, especially if it involves issues at the workplace. You want to correct these issues as soon as possible to avoid losing other employees.

There are common reasons why an employee would resign, including:

  • Lack of growth or advancement. An employee may feel stuck in their current position and want to find professional satisfaction elsewhere.

  • Overworked, underpaid. An employee may feel they are not fairly compensated for their efforts.

  • Misaligned values and goals. Even if they have a good position with good pay, an employee may leave if they feel their values or goals do not align with the company. They are looking for a fulfillment that your company cannot provide.

  • Poor leadership. An employee might be upset with the leadership, how responsibilities are delegated, how projects are managed, and how employees communicate.

  • Toxic culture. A toxic culture will easily drive out people who feel uncomfortable.

  • Better prospects elsewhere.Your employee may simply have a better opportunity elsewhere.

  • Personal Issues. There may be something going on in your employee’s personal life, and it is up to their discretion whether or not they will share it with you.

The employee is not required to share with you their reasons, whatever they are, so sometimes you may be left guessing. Don’t assume, but be aware that there can be many factors leading to their decision.

Author

Conor McMahon

Conor McMahon is a writer for Zippia, with previous experience in the nonprofit, customer service, and technical support industries. He has a degree in Music Industry from Northeastern University and in his free time he plays guitar with his friends. Conor enjoys creative writing between his work doing professional content creation and technical documentation.

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