Organizational Exit

1. Organizational Exit How Employees Leave the Organization

2. Organizational Exit • The process of managing the way people leave an organization. • Organizational exits can take the form of: • Voluntary terminations • Involuntary terminations • Layoffs or RIF’s

3. Reduction-In-Force • RIFs • Based on business necessity • Clear (regarding criteria used to make layoff decisions) • Convincing • Explained with a measure of compassion

4. Retained Employees • Diminished job security • Increased workload • Different work assignments • Changed organizational priorities • Change in culture • Loss of colleagues • Loss of history/knowledge

5. Retained Employees • Restoring Security, loyalty and productivity • Communicate-Address rumors, be forthcoming • Behavior-Example of actions that are appreciated and those not tolerated. • Timing-Transition period must be quick • Leadership-Lead by example • Job definitions-Educate employees about changes • Rewards-Realign to support organizational goals

6. Wrongful Terminations • Constructive Discharge-Employer makes working conditions so intolerable that the employee resigns. • Retaliatory Discharge-Employer punishing an employee for activities protected by law. • Coercion-Involuntary retirement

7. Involuntary Terminations • Termination of employees for cause. • Make sure company abides by all federal, state and local legislation and regulations. • Make sure employee offered COBRA. • Adhere to state wage payment laws.

8. Termination Do’s • Give as much warning as possible for mass layoffs. • Sit down one on one in a private office. • Complete the termination as quickly as possible. • Provide a written explanation of severance benefits. • Make sure employees hears about the termination from their manager first, not a co-worker. • Express appreciation for employee contributions if appropriate. • Control your emotions • Inform other employees, customers and suppliers of the decision by giving a simple nonblaming statement.

9. Termination Don’ts • Don’t leave the room for confusion, tell them employee they are terminated in the first sentence and verify they understand. • Don’t allow time to debate. • Don’t make personal comments. • Don’t rush the employee off site unless security is an issue. • Don’t fire people on significant dates. • Don’t fire employees while they are on vacation. • Don’t make discriminatory statements. • Don’t discuss reason for termination with remaining employees.

10. Voluntary Terminations • Categorized as resignations and retirements • Early retirement plans need to identify eligibility criteria • Voluntary waivers must be in writing and follow ADEA guidelines

11. Exit Interviews • An interview conducted when an employee is terminating their employment • Exit interviews • Face to face done by a neutral party • Upon departure or soon after • Confidential

12. Outplacement • A systematic process where laid-off or terminated employees are counseled in job placement and career skills.

13. RECORDS MANAGEMENT • Reasonable controls to ensure integrity, accuracy, authenticity and reliability • Must be maintained in reasonable order, in a safe and accessible place, and in a manner they can be readily inspected/examined • Readily converted to legible and readable paper copy • Labeling, access, storage, back-up & quality assurance procedures established and consistently implemented

14. Employee Records Management • Federal regulations • State regulations • Conflict in retention period keep longest • Employee access • Routine record audits • Record destruction program • Maintain all records in event of lawsuit or discrimination charge until final disposition