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Glossary Terms
Glossary of Human Resources Management and Employee Benefit Terms
Table of contents

Employee Exit

Employee exit refers to the process when an employee leaves their current employment, either voluntarily or involuntarily. It involves various procedures and considerations to ensure a smooth transition for both the departing employee and the organization.

Employee exits can occur due to resignation, retirement, termination, or other reasons, and it is important for employers to handle the process professionally and effectively.

What is an employee exit?

Employee exit refers to the formal process followed when an employee leaves an organization, either voluntarily or involuntarily. It involves several steps including documentation, handovers, feedback collection, and administrative formalities. The aim is to ensure a smooth and respectful transition for both the company and the departing employee.

What is an exit interview?

An exit interview is a structured conversation with a departing employee to understand their experiences, reasons for leaving, and feedback on the organization.

What is employee exit process?

The employee exit process is the structured set of steps followed when an employee leaves an organization.
It typically includes:

  • Notification of resignation or termination
  • Clearance of dues
  • Conducting an employee exit interview or survey
  • Deactivating system access
  • Completing the handover process
  • Issuing necessary documents (experience letter, final payslip)

Why is an exit interview important?

An exit interview is important because:

  • Feedback for improvement: Provides valuable insights into organizational strengths and areas that need improvement.
  • ‍Employee retention insights: Helps identify patterns and issues that may contribute to future turnover, enabling proactive measures.
  • ‍Closure for the employee: Offers employees a chance to express their thoughts, contributing to a sense of closure.
  • ‍Enhances employer brand: Demonstrates a commitment to continuous improvement and a positive workplace culture.

When does the employee exit procedure begin?

The procedure begins as soon as an employee submits their resignation or is notified of termination. From this point, the organization initiates the exit formalities, schedules an exit interview, and prepares the employee exit checklist.

Where is employee exit information documented?

Details related to the exit are usually recorded in an employee exit form. This includes the last working day, handover status, clearances from various departments, and any final feedback or survey responses.

Who is involved in the exit process of an employee?

The HR department typically oversees the entire employee exit process. However, the employee’s reporting manager, IT team, finance team, and administration are also involved to ensure all company property is returned and final settlements are processed.

How is an employee exit conducted?

An employee exit is carried out through a step-by-step procedure that may include:

  • Completing an employee exit checklist
  • Submitting an exit letter to the employee
  • Conducting an employee exit interview or employee exit survey
  • Processing final salary, benefits, and relieving documentation
  • Collecting access cards, devices, and other company assets

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

What is an employee exit checklist?

An employee exit checklist is a step-by-step list used to ensure that all tasks are completed before an employee leaves. It typically includes:

  • Submission of resignation or termination letter
  • Final handover of responsibilities
  • Return of company property (laptop, ID card, documents)
  • Completion of exit interview or survey
  • Clearance from IT, HR, Admin, and Finance
  • Final paycheck and benefits settlement
  • Issuance of experience or relieving letter

How to conduct an employee exit interview?

To conduct an employee exit interview:

  • Schedule the interview during the last few days of employment
  • Create a calm, neutral environment
  • Ask open-ended questions about their experience, reasons for leaving, and suggestions
  • Keep the tone respectful and non-defensive
  • Document feedback carefully for internal review
  • End on a positive and professional note

How to exit an employee?

Exiting an employee refers to formally completing their departure process from the company.

Steps include:

  • Issuing an official exit letter to employee
  • Discussing the exit timeline and responsibilities
  • Collecting company property and ID access
  • Completing documentation like the employee exit form
  • Processing final dues and benefits

What to ask in an exit interview employee

The goal of an exit interview is to gather honest feedback. Here are some useful employee exit interview questions:

  • What prompted your decision to leave?
  • Did you feel supported in your role?
  • What aspects of your job did you enjoy the most?
  • Were there any challenges that could have been addressed better?
  • How was your relationship with your manager/team?
  • What could we improve as a company?
  • Would you consider returning in the future?

Give me some employee exit survey questions.

Common employee exit survey questions include:

  • What prompted your decision to leave?
  • How would you describe your relationship with your manager?
  • Were your career expectations met?
  • What changes would you recommend for the company?

How to write an exit letter for an employee

An exit letter to an employee confirms the acceptance of resignation or termination and outlines the next steps.

Sample structure:

  • Acknowledge resignation/termination
  • Mention the last working day
  • Thank the employee for contributions
  • Provide details on final settlement, clearance, or exit interview
  • Add contact details for future queries
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