What is offboarding?

The definition of offboarding is the process of formally separating an employee from the organization he or she works for, as a result of his or her resignation, termination, or retirement.

The purpose of offboarding is to protect the interests of both the employer and the departing employee, as well as to make the transition smooth.

A complete offboarding process consists of several steps. It includes all the policies and procedures that must be followed so that there is no slack after the employee leaves.

What are the benefits of offboarding?

A well-designed  offboarding process  helps employers in several ways, including:

• Preventing legal and security issues
• Preserving essential knowledge from departing employees
• Identifying necessary improvements based on feedback received from employee exit interviews
• Maintaining a positive relationship with former employees that may encourage them to come back in the future

For employees, the benefits of good offboarding depend on whether their employer provides information and support around the following:

• Paid leave balance
• Final Payment
• unemployment benefits
• Company retirement account
• Health insurance coverage options
• Recommendations and Reference Letters

When an employee is leaving the company on a good relationship, employers should incorporate offboarding steps that make the departing employee feel appreciated for their contribution to the company's success. For example, sincere recognition from the employee's leaders and coworkers can go a long way in fostering the positive continuing relationships described above.

How should you conduct offboarding?

Here's a step-by-step list of common offboarding processes for managers and HR to follow. Some of the steps may not be relevant to your organization, so make adjustments as needed.

1. Let the rest of your employees know who is leaving and who will take over their responsibilities.
2. Document the employee's exit with a letter of resignation or termination.
3. Ask the departing employee for a list of their projects and deadlines.
4. Make sure they train their substitute or other staff who will take over their responsibilities (ask them to do so in writing if they cannot do so in person).
5. Gather all of their company equipment, such as phones, laptops, and security badges.
6. Change your company's passwords or revoke their access to the systems and accounts they use.
7. Discuss any binding contracts, such as non-compete and non-disclosure agreements.
8. Arrange for their final salary and retirement allowance, and then remove them from the payroll.
9. Provide information about your benefits, such as a 401(k) retirement account or COBRA health insurance coverage.
10. Provide reference letters to employees if they request it and company policy allows it.
11.  Conduct an  exit interview .

Well-designed  offboarding software  can help you with this process, saving time and effort, as well as ensuring compliance and that all details are taken care of.

Remember, the better the offboarding experience is for your employees, the better their final impression of your company will be. This is important because they will likely share their feelings about your organization on employer-review websites and verbally.