Why Offboarding Is A Vital Process In The Employee Lifecycle

From mitigating security risks to gaining brand ambassadors, here is why businesses should have a formal offboarding process.

Why Offboarding Is A Vital Process In The Employee Lifecycle

Most companies don’t focus enough on the employee offboarding process. In fact, less than 30% have a strategy to tie up loose ends and bid their workers farewell.

Generally, companies think, “The employee is exiting the workplace, why do we need an exit procedure?” So, they only focus on carrying out a quick exit interview. But is that enough?

We are here to tell you that offboarding your employees is just as important as onboarding them: keep reading to find out why.

What Is Employee Offboarding?

If onboarding is the process to integrate an employee into the company workplace and culture fully, then offboarding is the opposite. It is the last step in the employee lifecycle.

Offboarding is the process of transitioning a worker out of the workplace and formally separating “employee” from “company.” You need to offboard an employee if they have resigned, been terminated, or are retiring.

Some aspects of offboarding would include removing their access to computer systems, company files, and passwords; allowing them to return any company-owned equipment; transferring job responsibilities, and conducting an exit interview.

Offboarding Interview

Seven Reasons Companies Need To Offboard

1. Mitigate Security Risks and Get What You Need

Properly offboarding an employee is vital for security reasons. It’s not easy to think an employee might act out of spite and maliciously try to hurt the company, but it can happen. About 20% of businesses report they’ve had data breaches by former workers.

Ensuring your company is safe is easy: revoke access to company networks and systems from employees who are leaving.

The employee exit process is also an ideal time to gather what you may need as exiting employees generally do not want to be contacted past their last day. Other than company equipment and files, you may need the employee to create a training handbook or sign the final paperwork.

2. Has a Positive Effect On Current Employees

Whenever an employee leaves, it affects their team. The effects can be physically felt if they have to do more work while waiting for a replacement. And psychologically, there is bound to be a drop in morale.

It helps to have a smooth exit process and attend to the team's needs. The benefits of the team knowing the company backs them include boosting morale, productivity, and your company image.

3. Maintain a Positive Employer Brand

Maintain Employer Brand

Your company’s reputation will suffer if your offboarding process is non-existent, careless, or impersonal. People quickly trash companies on rating sites like Glassdoor.

A significant percentage of job hunters (70%) look at company reviews before deciding whether or not they should apply for a job. Nearly 50% of applicants take reviews into serious consideration when deciding to accept a job offer.

On the other hand, a positive offboarding process leads to a great lasting impression of your company and positive reviews. This does wonders for your brand and reputation.

4. Leave The Door Open For Future Employment

Boomerang employees are those who left your company, only to return in the future. According to a study, 15% of employees returned to work for a former employer, and 40% of employees say they’d consider boomeranging.

Following a great offboarding experience, former employees feel more comfortable working at their previous place of employment. Plus, re-hiring them brings several benefits.

These include having gained more experience and skills while working elsewhere and being low risk for hiring managers. They are familiar with your company culture. They don't need a lot of training or onboarding, which enables them to reach maximum productivity a lot sooner.

5. Get Feedback and Insights For Improvement

Collect Employee Feedback

Employees who are leaving the company are more likely to provide feedback and share what their experience was like. This is a good thing. Both positive and negative feedback can help your company identify its strengths and weaknesses. This leads to overall improvement, which is invaluable.

Properly offboarding soon-to-be ex-employees helps your company prevent any potential legal issues from arising. Exit interviews provide a way to determine if employees had any unfavourable work-related experiences during their time at the company. Legal matters could comprise compensation, contract disputes, bullying, wrongful termination, and discrimination.

7. Gain Ambassadors

Both first and last impressions matter. Imagine this: your employee has a favourable employee journey from the onboarding process right through to the offboarding one. While they won’t be working for your company anymore, they are likely to speak well of their former employer when asked about their experience.

This has a positive effect on your brand image and company as a whole.

Final Words

A smooth offboarding process to transition an employee out of the company means your business understands the importance of an effective employer-employee relationship. After all, your company has numerous benefits to gain, from increased retention to showing employees you value more than just the bottom line.

&Team can help you successfully onboard new hires and effectively offboard them. Schedule a demo today to find out how we can help you!