Your Offboarding Process Could Be Costing You

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Sarah Rodehorst: Fundamentally be human. Understand that it's a human on the other side. Understand that it's a difficult moment. They may react in different ways, and just making sure that it's handled with respect. I think that goes a long way.

Nicole: When people think about the employee experience, they often focus on recruiting, onboarding, or engagement. But the final chapter — offboarding — can leave one of the most lasting impressions. Welcome to Honest HR, where we turn the real issues facing today's HR department into honest conversations with actionable insights.

I'm Nicole Belyna, your host. Let's get honest. Done well, offboarding isn't just a feel-good practice — it's a business strategy. The way you support your employees through their exit can strengthen trust, protect your reputation, and reinforce the values the organization stands for.

Today, we're exploring what it means to create offboarding experiences that are both efficient and deeply human with Sarah Rodehorst, CEO and founder of Onwards HR, an offboarding compliance platform and part of SHRM Labs' 2026 Workplace Tech Accelerator Cohort. The SHRM Labs Workplace Tech Accelerator Cohort is a program designed to work with startups to elevate HR, shape the future of work, and solve today's most pressing workplace challenges through revolutionary technology. Welcome to Honest HR, Sarah.

Sarah: Thank you so much, Nicole. It is an honor to be here and to have been part of the SHRM Labs Workplace Tech Accelerator.

Nicole: It's such a pleasure to have you. I have lots of questions, so I'd love to jump right in. We spend so much time talking about attracting and retaining talent, but offboarding often gets much less attention. Why do you think organizations have historically underestimated its importance?

Sarah: It's really surprising when you think about it. About half of the workforce actually leaves their jobs every year. One in 10 are asked to leave as part of a layoff or firing. On the bright side, one in every 20 are actually ultimately rehired. Additionally, more than 1.2 million layoffs were announced last year in 2025. Workforce change is really not a rare event — it's happening every single day.

But you asked why offboarding has been so overlooked for so long, and I actually don't think HR has underestimated it. I think it's the organizations that have underestimated it. Leadership so often has invested where they see growth — we're hiring, we want to recruit, we want to invest in our talent, onboarding, and the like. That's a lot of times where the technology investment has gone.

But if you talk to HR professionals — and I'm guessing you would relate to this, Nicole — managing workforce transitions or offboarding as a whole is really complicated. It's really one of the hardest parts of HR. It's something we say nobody really hopes to do, but it is a big part of the process. Bringing to light the complexity around offboarding, understanding the compliance around it — the state notices, all of the laws, the OWBPAs, the Worker Adjustment and Retraining Notification Act (WARN Act), and the like — is something we need to bring to the attention of leadership, because it really just takes one mistake to make headlines or to result in a lawsuit.

Nicole: That's a really good point, and you're pointing out a lot of compliance-focused things that go along with offboarding. There is a lot that is compliance-related, and you want to do it the right way. But I always feel like compliance is sort of table stakes for really any part of HR. And then we also start to think about the experience.

I know that you published an article with SHRM Labs titled "Offboarding's Compliance Reckoning: Why HR's Hardest Job Deserves Better Tools." For those listening, we have linked the piece to our podcast page, and I highly recommend the read. In your article, you point out that organizations have sophisticated tools for recruiting and onboarding and everywhere in between, but many still rely on spreadsheets and email when someone leaves. So why do you think offboarding has lagged behind the rest of the employee cycle?

Sarah: I think one of the biggest misconceptions is that companies believe their human resource information system (HRIS) has offboarding handled. You ask any leader and they're like, "Oh, Workday does that. SAP or Oracle — they're handling everything." But we actually partnered with SHRM as part of the accelerator program to do some research and ask HR professionals how they're really managing offboarding and severance today.

We found that 93% — which is remarkable — 93% of HR leaders told us that they are still managing offboarding and severance manually. Only 3.7% said it's fully integrated with their HRIS platform. We knew those numbers were high from our conversations with the companies we're helping streamline that process and bring compassion to it, but we were really surprised at how high that number was.

Nicole: It's quite staggering. And you've argued that compliance and compassion are not competing priorities — they're actually closely connected. How did you come to that realization, and how has it changed the way you think about employee separations?

Sarah: That's a really great question. As an organization, we really have two north stars. We always say: compliance and compassion. You really have to have both to have an effective process. We do say that compliance is compassion, and we see it as the foundational layer, because those laws are designed to protect employees.

If we talk about WARN, it's about advance notice to employees in the event that they are impacted by a layoff. Adverse impact analysis is about making sure that people are treated fairly. State notices are about unemployment insurance and making sure employees know how to file when they are impacted. So compliance really is that foundational layer.

Once you have that handled and an organization is able to do it efficiently and in a timely manner, they also have more time for empathy and compassion. At the end of the day, technology should enable those human moments. Offboarding, more so than any other aspect of the employee life cycle in my opinion, requires HR and people in general to just show up and make sure it's a smooth conversation — that it's supportive, that employees have the benefits they need to transition, including outplacement, health benefits, and the like — and that everything goes very smoothly.

Nicole: One point that really stood out to me was that manual work doesn't just create mistakes — it also takes time away from empathy. How have you seen administrative work prevent HR professionals from showing up as the people leaders they want to be?

Sarah: There is so much involved in offboarding. You have federal regulations, and then every single state has unique laws about how organizations should treat employees in those locations. That's just a lot of work — and sometimes it's paperwork, administrative work — but it has to be done for the reasons we just mentioned. It's about making sure employees have the notification and the information they need to access resources.

So it has to be done, but it's a lot of work. If you can really help automate some of that administrative back-office effort, make sure people are getting the right forms, that they're filled out correctly, and that they have the information they need — that's where technology can assist. That gives HR more time to be present for those employees. It also eliminates error, because one of the fastest ways to create a really bad offboarding experience is to mess up someone's benefits.

If you get that agreement wrong, that employee may not receive all the benefits they were due. Or there's a mishap in communication — we've heard of cases where employees received their severance before they were even notified they were terminated. All of those experiences can really destroy that process and the corporate brand.

So let technology do the administrative work so HR can show up. And let technology help mitigate the risk of human errors that could happen in a complicated process that typically involves not only HR, but payroll, legal, and investigations. You need to know if someone's on leave. Managing that effectively and communicating it delicately — that's where technology can really help enable HR to show up in that moment.

Nicole: You've made a lot of really good points, and it goes back to your point that compliance and care really are the same thing — they go hand in hand. I could have the most empathetic conversation with an employee we are exiting, but if we then send them an exit packet and the severance amount is wrong, or there's benefit information missing, that takes away from the experience. It becomes a real burden and chips away at that last impression.

Sarah: The last impression, and trust. People really are just relying on the organization to show up in the moment. So many people spend so much time at work, and as you said, last impressions really matter. As much as we can do collectively in HR to make that a positive experience — I think it's important to that person, it's important to the organization, and I know it's important to the HR person. They always want to do the best thing for that person. It's never intent that's the concern. It's always just having the time, the space, and the resources to make it a very good experience.

Nicole: And what peace of mind, right? As an HR professional, if I know I have to have these very difficult conversations but I don't have to keep going back and checking and rechecking — going from this spreadsheet to that spreadsheet, wondering if this is the final version — just knowing that I have the compliance piece right where I need it gives me the confidence to have those discussions. And those discussions are never easy, no matter how —

Sarah: They're just never easy. One of the things we've seen — and I'm curious if you've seen it too — is that when you have those events or those moments, there are always last-minute changes. As much preparation as you do in advance, you think you've got it all lined up, and then leadership says, "Actually, I want another week." Now you have to change the dates, recalculate severance, and everything else. Those last-minute changes make it feel like you're starting over, but the timeline has been completely compressed. And then you still have to go have the conversation. That is really not the easiest thing to do — but it's important.

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Nicole: So for organizations operating across multiple states — and you touched on this a few minutes ago — or even multiple countries, what compliance risks are HR leaders most likely to overlook?

Sarah: It's one of those things where you wonder, where do I start? There are so many landmines when it comes to the separation space because there are so many different regulations. One challenge is that offboarding isn't one process or one type. You have voluntary exits, involuntary exits on an individual basis, group separations, and voluntary separation programs. Each one has unique rules and regulations in the U.S. and abroad.

So you take all of those different types, then layer on the federal government and every single state — which each has some level of nuance for the different categories. There are different rules around final pay, requirements around severance in certain states as far as mandated amounts, and then you have WARN and Older Workers Benefit Protection Act (OWBPA), which everyone wonders how to pronounce. It's a lot to keep track of.

For those organizations that have effectively stayed out of the headlines and out of the courts — kudos to that HR team. That means someone is keeping that organization safe, someone who cares deeply about making sure that process is going well. We partner closely with our customers because we know what they're going through. They want everything in their power to be a positive experience. They're in HR because they love people, and this is a very difficult moment — and they want to show up for that person.

But now they're tracking all of these different regulations across all of the different jurisdictions, which is now down to the geographic level — not even zip code, even more granular than that. They have to remember all of this and have a template for all of those scenarios. Part of the complexity isn't any one element — it's the combination of all of it. Being able to understand the nuance of a particular employee in a particular state, who may or may not be part of a union, and then that state's specific rules on top of that. It's a complex world.

That's why we always feel great when we're able to help organizations get that peace of mind — knowing that technology can remember all of that, so HR can show up for those human moments.

Nicole: No HR person on the planet wakes up in the morning saying, "I can't wait to do all of this administrative work." Or, "I can't wait to have as many offboarding conversations as possible today." There is no one who says that.

Sarah: And HR sometimes gets the bad rap of being administrative. But HR is strategic. They are there to help advance people. As much of that administrative work as you can lean on technology for, the more you really empower HR to be strategic — and give them the analytics to power better people decisions. Technology can do the administrative work, but it can also provide better insight into the organization and what's happening, so that HR can be more strategic, even in the offboarding space.

Nicole: Anything that can make me smarter throughout the day is a good thing.

Sarah: I know — I need that too.

Nicole: So, layoffs and workforce reductions often happen under intense time pressure — you and I know this. How can HR prepare before those moments happen rather than reacting in real time?

Sarah: My advice is simple: don't build it in the moment. Be prepared. Make sure your house is in order and you're organized. Make sure everybody is on the same page before the event happens.

We've found so often that organizations don't even have a process in place. I mean, we had the conversation around technology and how organizations aren't leveraging it — but many organizations don't even have a process at all. So when leadership comes down and says, "This needs to happen," they are completely reactive in the moment. And there is a high risk of those mistakes that make headlines, that end up in court, as part of that process.

So number one: be prepared. If you are, hopefully not, but if you are in the circumstance that you need to put it in motion, you have that infrastructure in place. You have the confidence to ensure it's handled consistently across the organization. There are leaders who are great at their jobs, but how do they ensure that everybody is doing it the same way and knows all the same laws and regulations? Technology, once you build the process into it, can ensure a consistent process throughout the organization.

Nicole: There are so many things out of your control during an involuntary termination. Just hearing you say that some companies go through the process in the moment makes me very anxious, Sarah.

Sarah: I know — I really couldn't even imagine it. We do get those phone calls, and we forge very tight relationships with our customers because it is very difficult. Not everybody has been through it before, so having best practices and understanding what is typical and what is the best approach really matters. Even something as simple — and it's not even a technology thing — but a lot of people say, "I'm going to notify someone on a Friday," and that's a big no-no. Unless you have the expertise, you know it's best to do it in the middle of the week so that employees have an opportunity to ask questions and someone is in the office to answer them.

Having the forethought to understand what kind of experience you want your employees to have, what process you want to follow internally, and what benefits you want to offer — that's a really important conversation to have well in advance of actually needing to put it in place.

Nicole: You're absolutely right. I have been working in HR for longer than I care to admit, and I never go into a termination off the cuff. Ever. Often it really is the care and the lasting impression we talked about that serves as the motivator. But also, you never know what could happen if things go south. So I never take terminations for granted for a variety of reasons — and I'd say that's probably the case for most HR professionals. But it's worth saying here —

Sarah: Be prepared.

Nicole: Yes. So let's move past that topic for a moment. We're hearing more about boomerang employees — people returning to their former employers. What role does a thoughtful offboarding experience play in whether someone would ever consider coming back?

Sarah: One of the big things we talk about again and again is making that great last impression, because ultimately 5% of employees who leave an organization return. But I'll even take it further than boomerang employees. When people leave an organization, they rarely leave that organization's ecosystem entirely. They've just joined a customer. They've just joined a partner. Typically, they're still going to engage with the organization as a whole and be around people who care about the brand and culture of that organization.

So it's really important to make that great last impression, because they'll carry it forward with them. Making sure that they feel respected, informed, and treated fairly — these are all things that are so important so that they speak positively about the organization as they move forward. And ultimately, being able to rehire someone who already knows the organization, the processes, the network, and the relationships — there's just a lower cost to them becoming valuable again. So again, it's just another reason to make a great last impression so that they want to come back.

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Nicole: One point you just made, Sarah, was about trust. Trust can be built over years but damaged in a single conversation, like an offboarding conversation. During the offboarding process, what are some ways organizations can preserve that trust, even in the most difficult circumstances?

Sarah: I think it comes down to three things. Be consistent — treat everyone the same, and obviously in compliance with the laws that are in place. Be transparent. When people don't believe the reason something is happening, that can cause tension. So as much as you can, be transparent about why things may be happening.

And then, fundamentally, be human. Understand that there is a human on the other side. Understand that it's a difficult moment. They may react in different ways, and just making sure it's handled with respect — that goes a long way.

I also think it's worth saying that organizations should think carefully about the benefits they ultimately offer the employee. Depending on the circumstances, the richer those benefits can be — severance amounts, outplacement benefits, health support, and the like — the more that will go a long way toward easing that transition.

Nicole: What's one thing departing employees remember long after they leave?

Sarah: People are not going to really remember every document they signed. But they are going to remember how they felt. They're going to remember whether someone looked them in the eye, whether they were treated fairly, whether someone explained what would happen next, and whether they left with their dignity.

We keep coming back to it: last impressions really matter. It is an emotional aspect of it all, so as much as we can make sure that it's a positive experience, we want to lean into that. Because they will absolutely remember whether that company treated them with respect.

Nicole: And I think you made a good point about how people are treated when things aren't going great. That could be during a layoff or a reduction in force (RIF). But I also think about even a voluntary termination — if I choose to resign and then go to roll over my 401(k) and the information is incorrect. Something as small as that, when there's a burden that organizations can lift for employees — no small measure is too small.

Sarah: Exactly. Or even the return of equipment. There are all of these little details that have to be handled, regardless of the reason the exit is happening. Even if someone is leaving voluntarily, do they really want to call and ask, "How do I get my W-2?" Being able to make that a smooth experience is really important.

Because you want to have alumni — people who are proud. People who say, "Yes, I worked at SHRM," and wear it like a badge of honor. It's that brand — it's a stamp of pride to have worked at that organization.

Nicole: Well, thank you for all of the great conversation around a difficult topic, and thank you so much, Sarah, for sharing your insights with us.

Sarah: Thank you so much for having me, Nicole. This has been wonderful. We have been so appreciative of SHRM and the Workplace Tech Accelerator — it's been a wonderful experience, and we're glad to be a part of it.

Nicole: Thank you so much for saying that. Just a quick note to our audience: if you are interested in applying for the SHRM Labs Workplace Tech Accelerator cohort program, you can sign up to get notified when the 2027 application window opens — just click on the link in the episode description. But that's going to do it for this week's episode of Honest HR, and we will catch you next time.

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