Friday, December 22, 2017

OFF BOARDING - RESIGNATION


Resignation is a process by which an employee gives notice of his or her intention to terminate the employment

The departure of an employee within an organization is a natural process of the employee's work cycle. Managers can react unpredictably when you resign. Some take the matter very personally, others will recognize the opportunity you face and will simply wish you well. Either way, it is critical not to burn any bridges when you resign or undo the good you created during your time with your employer. You never know when your paths might cross again, so make a firm decision, respect the process and leave with grace and professionalism.

For an employee to resign there maybe personal or occupational reasons behind it. Those will relate to organizational culture, management styles and HR policies. It is important for organization to know the real reason of leaving the organization, even though there’s no legal requirement on it. 

HR person should conduct an EXIT Interview, as the need for sensitivity to the human issues involved, compliance with the legal framework on employment protection and for the organization to gather feedback from voluntarily departing employees.

Activities involved of an employee resignation in brief are,

  • Employee officially inform his resignation to the immediate boss
  • Immediate boss and the HR department communicate information
  • Immediate boss will have a discussion with the employee to make the employee stay with the company
  • If above is unsuccessful, arrange an Exit interview
  • Employee should give minimum notice period as per the employee contract
  • Details of departure need to be communicated to other departments and employee will have to complete appropriate paper work procedures.
  • The department head need to prepare a complete form of leaving report, issue a service letter to the employee and finalize communications with external parties etc.

Most of the companies ask their employees to serve notice period for 1 to 3 months. Some companies make Full & Final settlement before you leave the company and some after leaving the company.

As an past employee, I have observed many employees just ignore calculating the Leave encashment, gratuity, EPF amount etc., before they leave their companies. It is very important to check about various employee benefits applicable to you, about tax related forms or continuity of health insurance benefits etc., before the move out of the company.


Employment resignation should be managed so the impact of the loss of the employee on work flow and work environment can be minimized. Handled effectively, the exiting employee leaves the organization knowing that he or she has contributed and added value during their time of employment.

Encouraging the employee's departure by holding a recognition and farewell event for the employee before his or her last day, may blossom a feeling of happiness.



REFERENCES

Heathfield,S.M (2016) The Balance, Employment Ending Checklist to Use in a Termination Meeting [Online] Available at: https://www.thebalance.com/employee-termination-checklist-1919340 (Accessed on 22nd December 2017)

Leary,M. (2017) Hrm recruitment, Managing resignations. [Online] Available at: https://www.hrmrecruit.com/blog/managing-resignations/ (Accessed on 21st December 2017)

Reddy,S. (2015) ReLakhs, Resignation : Employee Benefits & Personal Finances [Online] Available at: https://www.relakhs.com/resignation-employee-benefits-personal-finances-checklist/ (Accessed on 22nd December 2017)

6 comments:

  1. Interesting topic Rumana!!

    Resignation is an inevitable component of the employee life cycle.

    However it is the duty of all managers to minimize work related factors which persuade employees to take the decision to leave an organization. Strategic approach on HRM would play a huge role in minimizing these factors.

    However employers should always take special attention to provide a positive employee experience at all instances, even on exit interviews and farewells.

    ReplyDelete
  2. Interesting topic Rumana!!

    Resignation is an inevitable component of the employee life cycle.

    However it is the duty of all managers to minimize work related factors which persuade employees to take the decision to leave an organization. Strategic approach on HRM would play a huge role in minimizing these factors.

    However employers should always take special attention to provide a positive employee experience at all instances, even on exit interviews and farewells.

    ReplyDelete
  3. Interesting topic Rumana!!

    Resignation is an inevitable component of the employee life cycle.

    However it is the duty of all managers to minimize work related factors which persuade employees to take the decision to leave an organization. Strategic approach on HRM would play a huge role in minimizing these factors.

    However employers should always take special attention to provide a positive employee experience at all instances, even on exit interviews and farewells.

    ReplyDelete
    Replies
    1. Thank you for the comment Dasuni.
      I agree. If employees are not prompt to take decision to resign, it may be because the organisation is taking appropriate measures in keeping employees content.

      Delete
  4. You have selected very significant area in employee life cycle which is ignored by most organization. Organizations must adopt a effective exit process and has to manage exit employee database. By using this data organization put there practice in to correct track and reduce employee turnover

    ReplyDelete
    Replies
    1. Thank you. Yes as you said the exit process is not given much attention. some may feel that after employees leave the company their data is of no use. Rather, using the data in future developments may benefit the company.

      Delete