Turn Departing Employees into Loyal Alumni

Despite the high rate of churn in the labor market today, many companies pay scant attention to offboarding employees. That’s a mistake, say the authors, who argue that offboarding is an increasingly vital part of talent
management—and an opportunity to create long-term value.

Drawing on their scholarly research and interviews with HR professionals, the authors recommend a number of best practices. One is to plan well in advance for employees’ departures: Because few people stay at one company for their whole career, it’s important to have frank conversations throughout their tenure about their goals and prospects for advancement.

When employees do choose to leave or get laid off, managers should acknowledge their contributions, provide resources to support them through the transition, and use exit interviews as an opportunity for mutual learning. Companies should also create formal alumni programs to keep former workers connected to the organization. Together, these offboarding.

Organizations spend a great deal of time and resources bringing new hires aboard and retaining employees, but very little effort few resources go toward offboarding. Employees who leave may receive a perfunctory exit interview, instructions for handing off assignments, and a pro forma description of post-employment benefits and resources—but that’s about it. Sometimes they encounter impatient or rude managers; at the extreme, they may even be treated like traitors by their former bosses and colleagues.

lack of attention to the exit process is a mistake. Even before the pandemic caused millions of job losses, the labor market was in a state of growing flux. Average job tenure in the United States has shrunk to about 4.1 years, according to the Bureau of Labor Statistics, and employee turnover is on the rise.

It’s time for organizations to think more carefully about offboarding. They should approach it not only as an increasingly necessary part of talent management but as an opportunity to create long-term value.

Management consulting firms have long led in this regard by treating exiting employees in much the same way that a university handles its graduating students—assisting in, setting up departees for future success, and staying in touch through an alumni program. The incentives for consulting firms are too obvious to ignore: Former consultants become future clients.

We believe that similar incentives exist for companies in other industries, too, where alumni may become customers, suppliers, boomerang employees, mentors to current workers, and ambassadors for the brand. A 2019 report by PeoplePath (formerly Conenza) and Cornell University indicates that about a third of corporate alumni maintain connections with previous employers as clients, partners, or vendors—and that 15% of new hires come from alumni rehires and referrals.

More Than Just Compliance The extent to which a company invests in offboarding programs depends on its strategy, culture, budget, and turnover rate, as well as the industry it’s in.

But a foundational concern for every company is to ensure that all legal obligations are met when an employee departs. A carefully designed offboarding program can help protect the firm from potential litigation by establishing guidelines and systematic processes for managing employee exits.

compliance is just the beginning, however. Holistic offboarding programs need to be integrated and aligned with the company’s HR and talent-management policies. This involves establishing objectives for the offboarding program that support the company’s talent needs.

The size and scope of the organization matter, as do the skill requirements for its workers and the demand in the market for people with those skills. As George Sample, the human resources business partner manager at the Federal Reserve Bank of Cleveland, says, “The tighter the competition and the tougher the battle for talent in your industry, the more imperative it is to have dedicated and thoughtful offboarding efforts.

The best offboarding plans are also informed by a company’s mission, vision, and culture. The way that management treats exiting employees sends a clear message about whether the organization lives up to its espoused commitments and values.

“Companies strive to create an outstanding experience when someone enters the organization, ” says Mike Quinn, senior vice president for integration at the chemicals company Synthomer. “Similarly, when somebody is exiting the organization, even under trying circumstances, you want to be sure that the process and experience reflect the overall culture of the organization