How Can We Improve Exit Formalities? Seeking Best Practices and Insights

Dear All,

Can anyone share best practices to strengthen the Exit Formalities?

Regards,
Vandana.

Dear Vandana,

Please find attached the SEPARATION/EXIT process flow chart here for your reference. Hope this serves your purpose.

Regards,
Narendra

Dear Govind & Narendra,

Thank you for your inputs. Please find attached our Exit Formality Questionnaire Format. Lately, we have been encountering challenges, particularly with Service Department employees. They submit their resignations, and despite the 3-month notice period, their HoDs are releasing them after just 1 month. These employees play a crucial role in our business, and there is a shortage of qualified individuals for their positions. Kindly share any effective retention strategies or precautions that can be implemented to address this issue. Additionally, I would appreciate your feedback on the Exit Formality Format provided.

Looking forward to your response.

Regards,
Vandana

There is no point in having a 90-day notice period clause since, as per my experience, it is very difficult to implement. In any case, an employee who has put in his papers and made up his mind on quitting the current employer becomes mentally and emotionally disengaged. Hence, even in a handful of cases where such employees do serve the full length of the 90-day notice period, they typically do so with a disengaged frame of mind which can be risky, and their productivity during this phase is questionable. Further, efforts to force exiting employees to serve the full 90-day notice period only generate ill will, which can be destructive to the morale of your talent force.

In one of the organizations that I worked for, we had a 90-day notice period clause. I took upon myself the self-initiative of analyzing the historical data since the 90-day notice period clause had been introduced (prior to this, the company had a 30-day notice period clause). I found through my analysis that typically, employees who had joined on a 30-day notice period contract had twice the tenure of those who had joined on a 90-day notice period (after adjusting for the fact that typically those on a 30-day notice period currently would have joined earlier than those on a 90-day notice period clause). I also found that most of the attrition for those to which the 90-day notice period clause was applicable were moving away prior to the completion of their probation period since prior to confirmation in employment, the 30-day notice period clause was applicable. Based on this analysis, I recommended a change back to a 30-day notice period on either side, and the strength of this analysis had the management accept the practice of bringing back the 30-day notice period back into force.

The point I am trying to make here is that such things as 90-day notice period clauses destroy the psychological contract that the employee and employer share with each other and come across as being arbitrary and favoring the employer. They end up doing more harm than good.

Thanks,

Snoopypryer.

User input: You may check this process flow. It is better to have a systematic resignation and final settlement process to avoid last-minute confusion over exit. Also, with the help of a standard exit interview feedback, HR can analyze and come up with valid inferences on the actual reasons behind attrition.

Elements of an Effective Exit Process

An exit process should have the following elements:

Clear documentation of the employee leaving, including appointments with those who sign and clear the exit.

Steps to Ensure Asset Recovery

Steps to ensure all company assets and entry passes are taken back, verified, and accounted for by the company.

Financial and Work Transition

Listing all dues to the employee and from the employee. Taking over all files, pending work, etc.

The exit process should be simple, comprehensive, and well-documented. We should be able to work out attrition rates for the company.

Ensure all papers are signed by the exiting employee, such as the Non-disclosure agreement, etc.

Summary and Documentation

It should provide, in a nutshell, how many employees have left, periods served, and reasons for exit. It should also allow a smooth exit for the employee and provide them with exit documents and timely final settlement.

Regards