How to handle an employee resignation

Protecting your EVP and your team

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 a client or join a key partner. Treat every departure as an opportunity to nurture a long-term relationship. And so, 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 retaining 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. How you handle an employee resignation directly impacts your EVP. 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.

Employee morale: Making a counteroffer to one employee might create resentment among other team members if they feel undervalued.

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 keep them, clearly communicate with the employee throughout the counteroffer process to avoid misunderstandings and demonstrate your company's commitment to retaining the employee.

The importance of exit interviews

An exit interview is a valuable opportunity to gather feedback and improve your company culture. By understanding the reasons for the employee's departure, you can identify areas for improvement and implement changes to prevent future resignations.

Key questions to ask during an exit interview:

• What was your favourite 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 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, minimising 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 prioritising employee experience and gathering valuable feedback, you can create a more resilient and successful organisation.