This week, a key member of my team resigned. It was unexpected. And sadly, I was reminded that resignations are part of the job for any leader, and they often come at the worst possible time for the team.
At times, some employee resignations are welcomed, especially if the employee was being counselled for performance issues, or is not trusted by team members.
Regardless, resignations can cause disruption to the team environment. And this week, I’ve had the opportunity to reflect on the process to best manage employee resignations.
Before we get into some strategies, I do want to say that I will rarely provide a counter offer to an employee when they resign. It’s been my experience that most employees have given considerable thought to their options before resigning. In instances, where a financial counter offer is made and the employee stays, it usually puts a hold on their resignation for approximately 12 months, and then they resign again. I’m not suggesting the employee is using this tactic for more salary, but merely saying that more money is generally not the solution they are looking for, it’s just a bandaid. Another point on this – if you genuinely valued the employee, then they should be paid what they are worth before a resignation. Employees shouldn’t become more valuable once they resign and you think about the challenges their resignation will create.
7 ways to manage an employee resignation
1. Congratulate Them
Leave emotion at the door, and ensure you react well. Congratulate them on their new role.
You know the saying “don’t burn bridges”, well it applies to how you handle the resignation. If the employee is truly valued and someone you would like to retain or re-hire, then always leave the situation on good grounds.
2. Strategise Next Steps
You must continually think about the needs of your team and the organisation as you move through this stage.
Evaluate your options and develop a transition plan. Firstly, I like to think about knowledge transfer and handover of projects. Then I think about the role, and ask myself questions such as does this role needs to be replaced, are there options for a restructure, or how are the gaps going to be filled while we are recruiting.
If replacement is the way to move forward, then make a hiring plan (depending on the size of your organisation this may need to be done in conjunction with your HR team. It’s also a good idea to review your induction and onboarding process before you hire again.
3. Communication
I personally hate the gossip that comes with a resignation, so get on the front foot with it. Speak to the team and outline the reasons the employee is leaving, often this due to a new opportunity presenting itself, and frame the resignation as an opportunity for other staff (if it is).
Ensure all staff are informed. Below is a sample email:
Dear Colleagues,
John is leaving us to pursue new opportunities at xyz company. His last day at our company is 30th October. Please join me in wishing John all the best for his future endeavors. We will hold a farewell morning tea on John’s last day. Please join us to wish John success in his new role and to say good-bye.
4. Business Continues
It’s important to remind other employees that life goes on, and the organisation needs to keep moving forward.
I also like to keep the employee who has resigned involved in actions moving forward, including the transition plan and any other key activities that will ensure a smooth transition.
Be sure to keep checking in with any affected staff, this includes staff that may be helping to fill gaps while you are recruiting, to ensure they are not getting burnt out and that you aren’t going to have another resignation on your hands because staff feel unsupported throughout this process.
5. Seek Feedback
I encourage all leaders to have their resigning employees complete an exit interview.
Whether you want to hear it or not, the employee may have some critical feedback for you. Use it as an opportunity to improve staff retention efforts, or even your own management and leadership skills. Don’t take it personally, see it for the opportunity that it is.
6. Reflect
Reflect on the resignation. Do you have a succession plan in place, are you proactively identifying opportunities internally for staff. Are there ways to improve staff retention. Are you asking staff what their long term goals are and how these may be incorporated within the business.
7. Stay Connected
As I said earlier, often employees stay within the same industry, and there is no reason that past colleagues cannot be included in your network. Don’t lose a good connection. Give your employee a couple of months at the new company and reach out to them to see how it’s going. Don’t be afraid to refer them or the new company to others in your network – this demonstrates there are no hard feelings and you are keen to see them succeed in the new role.
Conclusion
Resignations often create difficult times for managers, and their teams. There’s never a good time for someone to resign, so don’t take it personally if it happens during your peak busy season. Use the resignation as an opportunity for change and improvement. Be sure you are checking in with your team often, and where possible have a robust succession plan in place to mitigate impacts of a resignation.
What other strategies do you use to minimise the impact of an employee resignation?