Offboarding: what is it? What does it involve?

While onboarding may be familiar, what is the idea behind offboarding? This is the stage at the end of employment, when the employee departs from the company, for whatever reason. Where onboarding is the process of transitioning INTO the company, offboarding is the process of transitioning OUT of the company.

What is Offboarding?

This concept of offboarding can be described as the procedure that encompasses all the steps related to the departure of an employee, from the moment the decision has been made (regardless of which party initiated it).

Offboarding includes the administrative aspects of the departure of the workforce: closing payroll, balancing documents of any account, handing over of equipment, but it is not limited to these procedures. There are necessary tasks that must be completed efficiently, such as returning company owned equipment and access badges, cancelling subscriptions and IT access, closing payments due and any other HR formalities.

The Employee's Life Cycle

Every employee has a life cycle within a company. This cycle consists of several stages and begins with the first interview (or even at the level of application). It continues with signing the employment contract, integration (or onboarding), the first projects, performance evaluations, raises, promotions, internal job changes (or cross-boarding), training, monitoring working hours or annual leave, and ends when the employee leaves the company's workforce.

Each of these steps is an opportunity to make a positive or negative impression on the employee.

Setting up an effective offboarding procedure can reduce the emotional burden of leaving the company and ensure that the employee feels like they were a valued member of the team.

Why is Offboarding So Important Today?

In the UK, in the first quarter of 2024, 269,000 people resigned from their job. According to Statistica, the number of resignations in the second quarter of 2022 was the highest number in any quarter between 2021 and 2024, and provided the name ‘The Great Resignation’ for both the UK and US.

Currently, in the UK, the average turnover rate is 15%, as researched by Acuity Training, with reasons varying from being overworked, unmotivated and wanting more pay.

While these statistics remain high, it is important to pay attention to how departures are dealt with. The usual tendency is to put the effort on the new employee, however this process is seen by all of the current staff and can have an impact within the culture of the company.

"Employee Experience", “Employer Brand” and "Employee Advocacy"

These concepts are being talked about more and more and are the new pillars of HR marketing.

The "Employee experience" is the series of experiences that will define the employee's life cycle in the company. These range from resources available to do a good job, relationships with management, work achievements and recognition. The objective is for it to be as positive as possible.

The “Employer Brand” is how the image of the company is perceived externally, and in particular with retaining or attracting employees. It is partly this element that makes the company more or less desirable in the eyes of candidates and encouraging them to apply.

Finally, "Employee advocacy" is how the employees advocate for their company. It can be from anyone in the company and shared externally or on social media. This is particularly important with the growing number of review sites available for potential employees.

When an employee leaves the company, this is an opportunity for them to support the company or make negative comments against them. A poorly managed departure could lead to the latter. Increasingly, these testimonials from employees carry a lot of weight when it comes to deciding to join the company or not.

The best advicates for a company are its current employees or those who no longer work there but continue to praise the employer brand.

The Phenomenon of "Boomerang" Employees

A "boomerang" employee is an employee who leaves the company, whether for personal or professional reasons, and returns to the same company at a later date.

It is common to see talent leave the company. Despite the short-term loss that this represents, preparing a proper offboarding for these employees will leave a good impression and guarantee a departure on good terms.

Should an opportunity arise for the same employee to re-join at a later date, rehiring someone who already knows the company has huge benefits. However, this is only likely to be an option if they had a positive experience at the time of departure.

The Values and Impact of Offboarding

Beyond the marketing and ‘employer brand’ aspects, the impact of offboarding is a question of the importance given to respect, kindness and well-being at work.

Showing in a transparent way how employees are treated, including those who leave, ensures a positive culture. A company that really cares about its employees, from the moment they join the company to their exit, will always be better regarded than those who do not show care.

How Do You Set Up an Effective Offboarding Process?

Several steps can be defined for an effective offboarding procedure, starting with the importance of submitting correct balance documents for all accounts. But successful offboarding is not limited to that.

Communication on the Employee’s Departure

It is important to communicate about the employee's departure as soon as possible, initially to those concerned, but also externally. This ensures that the employee is not in a situation of potential discomfort for too long. And as a result, the team members involved will be able to get organised faster.

Depending on the context, the announcement can be managed in different ways, such as via email or a in a company meeting. However, it is important to involve the employee. It is also an opportunity to thank them for their commitment and achievements within the company.

Business Continuity

To limit the risk that the employee will take with them project details that only they know, a thought-out procedure must be in place.

For continuity, the objective of a successful handover is to transmit knowledge and records to the people who will take up these subjects. If nobody is yet identified as taking over at the time of departure, the employee should prepare written handover documents. The manager will have to facilitate this handover and therefore take into account the time needed to do so in the organisation of the team until the employee's departure.

This should be done for any process in your company. Having documented procedures is particularly useful when the departure is more conflicting or abrupt and a handover is not possible.

Collecting Feedback

In the event of an employee departure, it is useful for the employee leaving to complete a questionnaire allowing them to share their opinion on certain aspects of the company, such as organisation, management, working atmosphere, and Human Resources.

It is more advantageous if the employee is able to benefit from an interview at the time of departure, ideally carried out with an impartial HR person. This is an opportunity to delve into the motivation for leaving, but also to collect valuable feedback on what could be improved in the company. It would be a shame to miss this opportunity.

Extra Information

Special packages can be provided for certain involuntary departures. For example, for a senior employee who will probably have difficulty finding work, you can offer career assistance. While this has a cost, it supports the company's objective to support employees as much as possible and confirms its societal commitment.

An employee departure is part of the normal and routine life of the company. These departures are becoming more and more frequent. Even if it seems like a waste of time, as you want to prioritise new hires and current employees, paying attention to offboarding can be valuable.