Organizational Exit
How Employees Leave the Organization
Organizational Exit
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The process of managing the way people
leave an organization.
Organizational exits can take the form of:
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Voluntary terminations
Involuntary terminations
Layoffs or RIF’s
Reduction-In-Force
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RIFs
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Based on business necessity
Clear (regarding criteria used to make layoff
decisions)
Convincing
Explained with a measure of compassion
Retained Employees
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Diminished job security
Increased workload
Different work assignments
Changed organizational priorities
Change in culture
Loss of colleagues
Loss of history/knowledge
Retained Employees
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Restoring Security, loyalty and productivity
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Communicate-Address rumors, be forthcoming
Behavior-Example of actions that are appreciated
and those not tolerated.
Timing-Transition period must be quick
Leadership-Lead by example
Job definitions-Educate employees about changes
Rewards-Realign to support organizational goals
Wrongful Terminations
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Constructive Discharge-Employer makes
working conditions so intolerable that the
employee resigns.
Retaliatory Discharge-Employer punishing an
employee for activities protected by law.
Coercion-Involuntary retirement
Involuntary Terminations
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Termination of employees for cause.
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Make sure company abides by all federal, state
and local legislation and regulations.
Make sure employee offered COBRA.
Adhere to state wage payment laws.
Termination Do’s
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Give as much warning as possible for mass layoffs.
Sit down one on one in a private office.
Complete the termination as quickly as possible.
Provide a written explanation of severance benefits.
Make sure employees hears about the termination from their
manager first, not a co-worker.
Express appreciation for employee contributions if
appropriate.
Control your emotions
Inform other employees, customers and suppliers of the
decision by giving a simple nonblaming statement.
Termination Don’ts
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Don’t leave the room for confusion, tell them employee they
are terminated in the first sentence and verify they
understand.
Don’t allow time to debate.
Don’t make personal comments.
Don’t rush the employee off site unless security is an issue.
Don’t fire people on significant dates.
Don’t fire employees while they are on vacation.
Don’t make discriminatory statements.
Don’t discuss reason for termination with remaining
employees.
Voluntary Terminations
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Categorized as resignations and retirements
Early retirement plans need to identify
eligibility criteria
Voluntary waivers must be in writing and
follow ADEA guidelines
Exit Interviews
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An interview conducted when an employee is
terminating their employment
Exit interviews
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Face to face done by a neutral party
Upon departure or soon after
Confidential
Outplacement
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A systematic process where laid-off or
terminated employees are counseled in job
placement and career skills.
RECORDS MANAGEMENT
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Reasonable controls to ensure integrity, accuracy,
authenticity and reliability
Must be maintained in reasonable order, in a safe
and accessible place, and in a manner they can be
readily inspected/examined
Readily converted to legible and readable paper copy
Labeling, access, storage, back-up & quality
assurance procedures established and consistently
implemented
Employee Records Management
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Federal regulations
State regulations
Conflict in retention period keep longest
Employee access
Routine record audits
Record destruction program
Maintain all records in event of lawsuit or
discrimination charge until final disposition