Managing employee separations, whether voluntary or involuntary, can be challenging for companies. Each departure is unique, and there are various ways an employee and employer can end their working relationship. To achieve the best outcome for both the organization and the employee's career, it's essential to understand the different types of separation. Establishing a standard process to follow in every situation is crucial. Let's explore the various types of separation and how to handle them effectively.
Types of Employee Separation
Some organizations may outline more than three types of employee separations, but generally, it can be divided into these three main categories:
Resignation
Many employees see resignation as an appropriate way to part company with an employer. It allows those who resign to explain their departure respectfully and professionally when discussing the experience with future employers.
With over three million people leaving their jobs in the first quarter of 2024, you will likely come across someone in your team who may be leaving shortly. However, HR should remember to respond well to the situation.
It's also important to show your support and genuine interest in why they're leaving and what they'll do next. Before they leave, make sure you agree on what they need and what you need from them to ensure a smooth transition. This may involve completing a specific project or set of tasks, training others to take over these responsibilities to minimize disruption, or even hiring their replacement.
Conduct exit interviews. A departing employee's feedback on workload, company culture, management, and other employees can highlight areas you might not otherwise see.
2. Retirements
Retirement is an important milestone in an employee's life as they approach the end of their working life. Many look forward to this milestone, but for some who have built their lives around work, it can be an unpredictable leap into the unknown.
HR professionals have a key role to play in helping employees manage these feelings and prepare for this next phase of life. From an emotional and psychological perspective, they need to help employees reduce and manage their stress and enjoy a positive retirement. The sources of stress will be different for everyone, depending on their context. Here, HR can offer counseling services, help employees with financial planning or how to invest their terminal benefits, and let them know if there are opportunities to re-engage as mentors or facilitators.
3. Layoff
Of all the types of employee separation, layoffs are the thorniest to manage. Layoffs happen mainly for financial reasons, such as cost reduction, merger of two branches, loss of funding, technological advances, or relocation of a company.
Downsizing takes a toll on everyone, including those who are leaving, those who are staying, and the managers responsible for communicating the reduction in force. So, it takes extra sensitivity and support to respond to your employees during difficult times. Here are some things to consider when breaking the news.
Navigating the Emotional Turbulence
Lift the Veil
Although there is never a good time to deliver such bad news, it is often argued that this type of conversation should take place on a Friday so that laid-off employees have time to process the news. In another opinion, telling employees during the week can allow them to discuss it with managers, teammates, and other HR staff during business hours. So, in some sense, either route can be feasible based on your organizational culture and team sentiment. This is something HR needs to decide only after talking to the departing employee's teammates and managers to agree on what is best for them.
After the initial layoff conversation, offer the option of a follow-up meeting. This meeting allows the employee to ask questions or share concerns that may arise as they process the news. This option demonstrates your commitment to their emotional well-being and provides valuable support during their transition.
2. Prepare for a Dignified Exit
Expand assistance by conducting sessions, workshops, and counseling services to help employees cope with the emotional toll of downsizing. Provide employees with resources that will help them make the transition. Such resources may include:
HR support and information about the benefits of transition
Outplacement resources to assist with employee transition, job search, and resume preparation
External references, vacancies, or community resources
3. Combat Layoff Survivor Sickness Syndrome
While layoff does impact departed employees’ lives, the ones who are left behind suffer the worst. ‘Layoff Survivor Sickness Syndrome’ is a combination of psychological and emotional disorders characterized by anxiety, stress, and depression, affecting survivors due to organizational changes like downsizing and work overload. Managing it can be challenging.
Employers can provide programs, counseling services, and mentorship programs to employees who may be feeling a bit raw and wounded in the wake of layoffs — even if no one asks for it. After layoff, due to a reduction in the workforce, there may be chances that surviving employees are expected to pick up the workload of laid-off employees. Don’t let go of these efforts unrecognized. If financial recognition is not possible, at least acknowledge and appreciate employees' contributions in troubled times. Without this, the workplace is likely to breed feelings of resentment and negatively impact engagement, productivity, and morale.
Parting Doesn’t Have to Be Painful
Managing workforce reduction poses more challenges than any other type of employee separation. However, when the emotional rollercoaster is boarding, running the other way is not a solution. By recognizing and understanding employee reactions, lending a sympathetic ear, encouraging self-care, and taking advantage of available resources, organizations can support employees and navigate the separation process with compassion, empathy, and resilience.
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