The Complete Employee Offboarding Checklist: A Guide for HR Professionals

In a perfect world, employees would join a company fresh out of college and stick around until they retire. However, that’s not what really happens. 

According to the US Bureau of Labor Statistics, as of January 2022, the median tenure of employees with their current employers is just 4.1 years. Interestingly, this number has been the same since 2020, meaning that employees are always on the move and not necessarily staying put for the long haul.

With that in mind, employers like you must be well-prepared for an employee leaving. Offboarding is just as crucial as onboarding; doing the process correctly results in a smooth and respectful transition and keeps the work culture positive.

Whether it’s a sudden departure or retirement, you need an employee offboarding checklist to cover all bases. Learn more in the infographic below!

Offboarding an employee is not as easy as saying “Goodbye!” with a handshake. Read through this complete guide to offboard employees without a hitch.

What is Employee Offboarding?

Employee offboarding entails managing an employee’s departure from the company. It involves three key parties: the departing employee, the manager, and the HR team. Each party has specific responsibilities that they must know to keep the procedure smooth.

The employee leaving completes all the exit requirements, the manager handles knowledge transfer and duties, and the HR team handles administrative tasks like final pay and benefits. 

Why is Employee Offboarding Important?

Here are some reasons why offboarding is a vital process to know.

Ensures smooth transition and continuity

Proper offboarding ensures that crucial tasks and knowledge are transferred smoothly. For instance, the departing employee should document their processes and train their replacement to prevent workflow disruption and remain productive. The new hire must be ready to take over once the employee leaves.

Assures legal compliance

Following offboarding procedures are necessary under the law. For instance, issuing final paychecks on time and complying with local labor regulations on resigned employees ensure you will be in the law’s good graces.

Minimizes insider threats to data security

One of the steps included in offboarding includes revoking access to company systems and retrieving work devices. Immediately turning off the employee’s email and access to other pertinent systems and data once they clock out for the last time reduces the risk of unauthorized access to sensitive information.

Upholds business reputation

A respectful and well-managed offboarding process can leave a positive impression on the employee, who may speak highly of the company even after leaving. For instance, conducting a professional exit interview shows that the company values employee feedback. You may also get opportunities for referrals from employees who left on good terms, making hiring easier.

Encourages opportunities for rehiring

A positive offboarding experience increases the likelihood that former employees may return. Offering to stay in touch through an alumni network can lead to rehires who already understand the company culture and operations, saving time and resources in training.

Employee Offboarding Checklist

With a solid plan, offboarding becomes a smooth process. The key is to handle each step with care and clarity, being mindful to inform all involved so everyone is on the same page. Here’s how the flow should go.

Day of notice

When an employee submits their resignation or you inform them of a layoff, the first step is to acknowledge the receipt of the resignation or notify the affected employees. This initial stage sets off the entire offboarding process.

Agreeing on a definitive leaving date is crucial, as it allows the company and the departing employee to plan accordingly for a smooth transition. A two-week notice is the norm in other countries, but in the Philippines, employees must file their resignation at least one month before their planned last day under Article 285 of the Labor Code. 

Once you have the date, send an offboarding email to the employee. This email should outline the steps they must take before their last day so everything is clear and there’s no anxiety about the process. 

Following this, schedule exit interviews. These interviews are a valuable opportunity to gain insights into the employee’s experience and identify areas for improvement in the company.

Finally, remember to communicate the departure with stakeholders and other parties. Telling team members, clients, vendors, and other relevant parties about it helps maintain trust and ensures all external and internal interactions continue without interruption.

Two weeks before leaving

As the departure date draws closer, you must shift focus to transitioning responsibilities and securing company assets. 

Ideally, the employee’s job description should be sufficient, but you should also ask them to document their tasks and responsibilities before they leave. This documentation minimizes disruption and is a valuable resource for the team members who will take over the duties.

Help the departing employee turn over their files and tasks to make the process easier. This step may involve organizing digital files, transferring project ownership, or providing comprehensive instructions for anything ongoing. 

Also, remember to set up transition meetings with the team members to discuss current projects, pending deadlines, and any other critical information. Having these meetings guarantees nothing falls through the cracks and that everyone is informed.

Don’t forget to prepare to revoke access to company property, including collecting laptops, keys, ID cards, and other company-issued items. The employee must return them promptly so that you can protect the company’s assets and keep data secure.

Last work week

The final week is the time to tie up all loose ends and complete all exit procedures. Confirm if the employee has returned all company-issued items so you don’t have to chase them down later.

Review any non-disclosure and non-compete agreements with the departing employee. This step reminds them of their ongoing obligations to protect the company’s confidential information and respect any restrictions when it comes to competitors. Clear communication helps prevent legal issues down the line.

Finally, all necessary exit documents, like their final paycheck, must be prepared, which confirms the company property’s return. Check if they filled out all required forms and agreements. Handling all these records properly keeps you compliant with legal requirements and provides a clear record of the offboarding process.

Last day

On the final day of the employee’s tenure, wrap up everything you haven’t finished yet. Conduct the exit interview to gather feedback on their experience and determine areas the company must improve. Approach this interview with an open mind and a willingness to listen because it can provide critical information to help enhance workplace culture.

After the exit interview, revoke the employee’s access to company systems and networks, which involves disabling email accounts, removing access to internal databases, and deactivating all their login credentials.

Lastly, email auto-responders should be set up on the departing employee’s email account. This feature redirects any incoming emails they receive to the appropriate contact person, preventing communications from breaking down.

Last pay day

After the employee officially leaves, a few things remain left to do. You need to process their final pay, including any unused leaves they have. You must guarantee the employee receives accurate and timely compensation for all their work and accrued benefits. Calculate their final pay carefully to avoid any discrepancies or delays, which could lead to trouble with the law.

Next, double-check all benefits and matters regarding insurance. Properly managing these benefits helps maintain goodwill and gives the departing employee the necessary support during their transition.

Finally, do follow-ups, like reaching out to the former employee to ask if they have received the final paycheck or if there are any lingering questions or concerns. This step shows that your organization values employees even after they’ve left and can help maintain a positive relationship for potential future rehiring or referrals.

Optional Post-Departure Tasks

While not strictly mandatory, incorporating these optional post-departure tasks can benefit the departing employees and the company. 

Encourage employees to join the company’s alumni program

Inviting former employees to join an alumni network fosters networking, knowledge sharing, and potential rehiring opportunities. This opens the door for future collaborations and allows alumni to stay connected with the company. 

Send a personalized invitation highlighting the benefits of the program and ways to stay involved. For instance, you could organize regular alumni events or online forums for professional development and networking.

Provide reference letters and recommendations

Offering reference letters or recommendations can significantly aid departing employees in their job search. This gesture supports them and reflects positively on the company. 

Highlight the employee’s achievements and strengths so future employers can see that the employee is an asset. For instance, you can write a personalized reference letter detailing an employee’s contributions to a significant project.

Assist in job placement for laid-off employees

Providing outplacement services or assistance to find new job opportunities shows the company cares about its employees’ futures. It includes offering career counseling, resume writing workshops, or connecting them with recruiters and job openings. 

Manila Recruitment can help with looking for new positions for these employees. We can match their skills with positions suitable for them, lessening the time it takes for them to look for another job.

Saying Goodbye the Right Way

A well-executed offboarding process keeps transitions smooth and maintains good relations with employees. By following the steps in the checklist, you can handle any departure respectfully and effectively. 

Remember not to rush each step and always to double-check if you’ve handled them properly. Not only are you protecting the company’s interests, but the departing employee’s as well.

If you need recruitment, offshoring, or outsourcing assistance, consider partnering with Manila Recruitment. We’re a recruitment agency in the Philippines dedicated to finding the best talent that suits your company’s needs.

Contact us today to learn more.