Most employees will work for multiple organisations. A diverse work background expands your knowledge in different spaces. Companies like Google actually encourage long-term employees to work for other organisations. They understand the value of employees with broader perspectives on overall business success.
I see this perspective becoming adopted in more and more workplaces. Keeping leaving employees engaged creates networks. An engaged former employee is more likely to return with a larger skill set.
The secret to keeping outgoing employees engaged is a strong offboarding process.
The correct process must be in place for each type of contract termination.
The new, ‘transient workforce’ (the term commonly used to describe the way most employees frequently jump between roles) has led to offboarding procedures becoming more common for HR. Remember, employees don’t always have a mutual departure from their employer, so you need to have processes in place for a whole host of different offboarding types:
- End of contracts
A well-developed offboarding process not only ensures you’re complying with Fair Work Australia guidelines, but also cuts down on HR’s administration costs.
Offboarding programs reduce costs missed by HR.
There are hidden costs involved with disorganised offboarding. A study by Emma Snider for Search Financial Applications highlights the expenses that can be overlooked:
“To understand just how critical it is to have a functional offboarding process in place, consider the University of Wisconsin.
According to an audit conducted by the Legislative Audit Bureau, the school system overpaid $15.4 million for health insurance premiums during the 2011-2012 fiscal year.
More than half that amount was paid for workers no longer employed by the organisation.”
You will find examples like this everywhere – former employees eating the benefits meant for current employees.
The offboarding process does more than tidy up accountants’ books. It also influences the engagement and perception leaving employees have with your employer brand.
Offboarding means a clean relationship with the departing employee.
There are administrative tasks in that you need to address when offboarding an employee. Consider whether your company’s process covers these five questions:
- Have all company valuables been handed in?
- Has HR been compliant with workplace laws for the leaving employee?
- What needs to be presented to the leaving employee?
- Which departments need to be involved?
- How important is your employer brand?
Make sure your organisation has the right offboarding process
Don’t know where to start? We’ve put together a free, 10 step Offboarding Checklist based on feedback from some of Australia and New Zealand’s most well-known organisations. Check it out for an easy, comprehensive starting point.
If you’re ready to take it one step further and automate your offboarding process, why not contact me and I’ll show you how to streamline your offboarding processes?
Alternatively, you can download your own Business Case for Employee Offboarding Software here.