How to handle an employee resignation

Receiving a resignation can be unsettling, but it's important to remember it's a natural part of business.  

As the saying goes, “It’s a small world.” Former employees might return as customers, clients, or join a key partner, so it’s important to treat every departure as an opportunity to nurture a long-term relationship. How you handle this situation can significantly impact your company's reputation, employee morale, and ability to retain remaining staff.  

Let's explore how to navigate this process while maintaining a positive brand image and potentially keeping your departing employee.

The impact of an employee resignation to your EVP

Your Employee Value Proposition (EVP) is a crucial element in attracting and retaining talent. When an employee leaves, it's an opportunity to demonstrate your company culture and values.  

A smooth exit process can reinforce your employer brand as a positive and supportive workplace. Conversely, a negative experience can damage your reputation and make it harder to attract top talent in the future. 

The counteroffer conundrum: Weighing up the options

The decision to make a counteroffer is complex and should be considered carefully. While it might seem like a quick fix, it's important to evaluate the long-term implications. And if you decide to make a counteroffer, approach it with caution and transparency.

Consider these factors:

• Reason for resignation: Understanding the underlying reason for the employee's departure is crucial. If it's due to salary or benefits, a counteroffer might be effective. However, if the issue is job satisfaction or career growth, a counteroffer may not be the solution. Read more on negotiating tactics.
• Retention rate: Consider your company's overall retention rate. If you have a high turnover rate, addressing the root causes of employee departures is more important than making individual counteroffers.

Avoid making offers (monetary or otherwise) that you can’t keep. If you’re confident you want to retain them, clearly communicate with the employee throughout the counteroffer process to avoid misunderstandings. Also, be sure to demonstrate your company's commitment to keeping them on.

The importance of exit interviews

While exit interviews are typically carried out by your HR function, it’s important to still gain the feedback you’re after. By understanding the reasons for the employee's departure, you can identify areas for improvement and implement changes to prevent future resignations. Here are questions we recommend for an exit interview.

Key questions to ask during an exit interview:

• What was your favorite aspect of working at the company?
• What were the biggest challenges you faced?
• What could we have done to prevent you from leaving?
• Is there anything you would change about the company culture? 

Partner with Michael Page for a smooth transition

When faced with unexpected departures, finding a replacement quickly can be challenging. Michael Page can help streamline the recruitment process by providing access to a pool of qualified permanent, temporary, and interim candidates.  

Our expertise in various industries and roles ensure a swift and efficient search without compromising on quality. Speak to us about your hiring needs today. 

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By partnering with Michael Page, you can focus on managing the departure while we handle the recruitment process, minimizing disruptions to your business operations.

Remember, a well-executed resignation process can reinforce your company's positive image and contribute to a strong employer brand. By prioritizing employee experience and gathering valuable feedback, you can create a more resilient and successful organization.