Watt about offboarding employees?

Claire Watt

Mar 103 min read

In the world of HR, we use a framework called the 'Employee Life Cycle' to help us to understand and manage every stage of an employee's journey, from attracting the best people to come and work for your company to ensuring a smooth exit when they move on.

Here's what the Employee Life Cycle looks like:

In this guide, we'll discuss offboarding, an important step in the Employee Life Cycle that businesses often overlook.

Where are business owners going wrong with offboarding?

Lack of a formal offboarding process, including exit interviews

Many businesses handle offboarding inconsistently or without clear procedures, resulting in chaotic or incomplete transitions.

Skipping exit interviews, or not taking them seriously, means losing valuable insights into workplace issues or opportunities for improvement. Employees leaving may have key feedback about the culture, leadership or processes, but this feedback is often ignored.

Inadequate knowledge transfer

Employers fail to ensure that critical information is passed on to colleagues or successors, creating operational challenges. Without proper documentation or handovers, important workflows can stall or break.

Ignoring the impact on teams

The departure of a team member can disrupt morale and workflow, but businesses often fail to address this proactively. Team members may feel overburdened or anxious if roles aren’t backfilled or responsibilities aren’t redistributed thoughtfully.

Failing to protect sensitive data

Not revoking access to systems, tools and sensitive information in a timely manner increases the risk of data breaches. Poor asset retrieval processes (e.g., laptops and ID cards) can result in losses.

Neglecting compliance

Mishandling final pay, benefits or legal obligations during offboarding can lead to compliance issues or disputes. Inconsistent handling of offboarding can also expose businesses to claims of unfair treatment.

What are the risks of not having a good offboarding process?

Damage to employer brand
Loss of knowledge and productivity
Reduced employee morale
Missed opportunities for improvement
Risk of security breaches Increased legal and compliance risks
Higher turnover costs

For these reasons, it pays to invest in a proper offboarding process...

What should your offboarding checklist look like?

1. Pre-departure prep

Confirm resignation details (last working day, notice period) Document resignation acceptance and communicate it to HR Create a personalised offboarding plan for the employee Inform relevant departments (IT, payroll, facilities, etc.) about the departure

2. Communication and announcements

Notify the team and stakeholders of the departure professionally and respectfully Provide a clear plan for reallocating the employee’s responsibilities Announce the departure to clients or external partners if necessary

3. Knowledge transfer

Schedule a handover meeting to document key responsibilities and processes Assign ongoing tasks to other team members or the replacement Ensure all critical files, documents and passwords are organised and accessible Request detailed documentation of any unique knowledge or workflows

4. Exit interview

Schedule and conduct an exit interview in a private, supportive setting Use a standard list of questions to gather insights on workplace culture, leadership and reasons for leaving Record feedback and share relevant findings with leadership or HR

5. Final pay and benefits

Confirm last paycheque details, including unused leave, bonuses and other payments Communicate the status of benefits like healthcare, pensions or stock options Provide information about any severance package (if applicable)

6. Asset and access management

Collect all company assets, including: Laptops, phones and tablets ID cards, keys or security passes Tools, equipment or uniforms Revoke access to: Email accounts and cloud storage Company software, databases and tools Building access and Wi-Fi Ensure data compliance by archiving or transferring work-related files

7. Celebrate contributions

Organise a farewell event or team gathering (virtual or in-person) Thank the employee publicly or privately for their contributions Present a parting gift or token of appreciation, if appropriate

8. Post-departure tasks

Send out a final announcement or farewell email internally or externally Update organisational charts and contact lists Reassign projects or roles formally within the team Monitor and address any gaps or issues caused by the transition

9. Reflect and improve

Conduct an internal review of the offboarding process Use feedback from the departing employee and team to refine procedures Update the offboarding checklist as needed for future departures