The 6-Step Employee Exit Checklist

Apr 18, 2022

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Losing an employee can mean a lot of added time and cost for your business. Between reallocating their work to other team members to the process of finding, hiring, and training the perfect replacement, this could mean months of disruption. That’s why an employee exit checklist is crucial.

By following the right steps you can ensure you have all the information you need to make the transition seamless. Consider the following: 

Step 1: Communicate to the Team

As soon as you get word that an employee is planning to leave, your top priority should be letting the rest of your team know. To keep hard feelings to a minimum, tell your team members–and other people in your company who could be impacted by the upcoming departure–ASAP. 

During these discussions, make a point of being transparent. Talk about why the employee is leaving (if and when appropriate). This is also an opportunity to tell HR and IT so they can begin preparing. 

Step 2: Prepare/Complete the Paperwork 

When an employee leaves, paperwork inevitably follows. Some of the documents and information you and your HR team will likely need to collect or complete include: 

  • The exiting employee’s signed resignation letter (or acknowledgment of their termination letter)
  • Written acceptance of their resignation letter
  • Any conflict of interest statements, non-disclosure/non-compete agreements, and confidentiality agreements that might be relevant
  • Information for the employee’s testimonial/experience letter
  • Anything needed for the employee’s final paycheck
  • Information on any continuing benefits

Advertise for a Replacement

To minimize the impact of this change, start the process of hiring a replacement as soon as you can. Work closely with HR to develop a replacement plan and start advertising for someone to fill the position in question. The sooner you start working on your replacement strategy, the sooner you’ll be able to find qualified candidates. 

Step 3: Begin Transferring the Knowledge

One of the biggest challenges associated with losing a talented employee is dealing with the loss of their knowledge. To mitigate this issue, create a checklist for your employee that leaves your team with all the information needed to carry on their role while recruiting, hiring, and training a replacement. 

Exit To-Do List Example

Have the exiting employee provide information surrounding the following: 

Contacts

  • Clients
  • Vendors
  • Team members and other coworkers
  • Email IDs

General Information

  • Daily/weekly/monthly job duties
  • Roles
  • Protocols
  • Supervisor information
  • Process outlines

Documents

  • Client presentations (including background information)
  • Documents for the department
  • Logbooks
  • Details on the position
  • Links to digital documents

Step 4: Conduct an Exit Interview

This crucial step in the employee exit checklist gives you valuable information on why they chose to leave, which can help you improve your company and reduce turnover in the future.

Some questions you’ll want to ask during the exit interview include:

  • What did you enjoy (and what did you dislike) about your role? This question can help you get a sense of what you’re doing right when it comes to managing this position and what can still use improvement.
  • How was your relationship with your manager/coworkers? For retention of other employees it’s important to learn if issues related to individuals or your company culture played a role in the outgoing employee’s decision.
  • Did you have access to the tools and equipment you needed in your position? This will let you know if you aren’t providing employees with what they need to do their jobs.
  • What played the most notable role in your decision to leave? The answer to this question will give you a clear picture of why your employee is leaving, which you can consider going forward.

Step 5: Recover Company Assets

Before your employee leaves, you’ll need to make sure to recover any company property in their possession. In many cases, this involves physical equipment–desktop/laptop computers, uniforms, keys, credit cards, and more.

However, it’s equally important to double-check their access rights. Recent research shows that 1 in 20 companies had no idea whether or not former employees had access to their network. To avoid any security risks, be sure to change passwords and access credentials when the time comes.

Step 6: Organize a Fun Send-Off

Employee offboarding can be a complex, time-consuming process. Still, you should take some time to thank your outgoing employee for what they’ve done for you. Some ideas for showing your appreciation for exiting employees include:

  • Finding a personalized gift they’ll love
  • Scheduling (and paying for) a goodbye lunch/happy hour
  • Passing a card around the office for other employees to sign

Doing something special for them not only helps morale for your current staff, but also leaves the exiting employee on a positive note. 

Get Help From the Talent Experts

Once you’ve completed the employee exit checklist, it’s time to focus on the rest of the transition process, including the evaluation of that position, what’s needed for the future, and working to hire a replacement. For this crucial time, it can be extremely beneficial to get the help of experts and the team at PeopleAK are ready.

With over 40 years of experience, PeopleAK aims to help employers save time, money, and frustration through the art of people and the science of management. By doing intensive research in your industry and pulling data and analytics for support, they help uplevel your team and scale your business seamlessly. 

If you’re ready to reduce employee turnover, improve morale, and get the best people in the right roles, call PeopleAK today.

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