Employee Offboarding: An Overview of the Key Aspects

29.1.2024
Most people are now familiar with onboarding from their first few days at a company - but what about the last day of work? Offboarding - or exit management - refers to the process by which employees leave the company. Possible reasons for this could be dismissal, a termination agreement or the expiry of a fixed-term employment contract. Here you can find out why offboarding is just as important as onboarding.

What is offboarding?

Offboarding refers to the process in which an employee leaves the company. This is not just about deregistering with the tax office and health insurance company, but also about the orderly and smooth transfer of knowledge and tasks to colleagues or successors. The aim of offboarding is to ensure that the employee leaves the company satisfied and with a good feeling.

To what extent is offboarding important?

A poor offboarding process can have a negative impact on the company in the long term. On the one hand, a company's reputation as an employer can suffer if former employees speak negatively about the company. On the other hand, unfinished tasks or lost knowledge can lead to delays and problems within the company. 

In particular, however, a positive farewell can help the employee to act as an ambassador for the company in the future by recommending it to potential employees or customers. 

How to organize successful offboarding?

A successful offboarding process begins even before employees leave. It should be clearly communicated which tasks still need to be completed before the last working day and which tasks will be handed over to whom. The exchange of knowledge and experience should also take place before the last working day. For example, handover meetings or the creation of documentation are suitable for this. On the last day of work, the employee should be given an appropriate farewell. This can take the form of a farewell party or a farewell gift, for example. The employee should also be given the opportunity for a final meeting to provide feedback and suggestions for improvement.

7 reasons for good offboarding

  1. Good reputation as an employer: Former employees can have a positive or negative impact on the employer's image through their experiences. It is therefore very important that both parties part amicably. Employers can contribute to this by talking to the employees concerned about the reasons for the separation, thanking them for their cooperation and presenting them with small farewell gifts.
  2. Avoiding unwanted employee turnover: By analyzing an employee's reasons for leaving, the company can gain valuable insights into which areas need improvement. Employers should openly address these reasons during offboarding in order to prevent other employees from resigning.
  3. Recruiting future employees: Employees who leave the company on a positive note and have a good relationship with their former employer can be valuable advocates in their social environment who will make recommendations. This makes it easier for the company to establish promising contacts with potential employees. Incentives such as benefits for successful referrals are also conceivable to encourage this type of employee recruitment.
  4. Structured handover: Careful handling of departing employees is of great importance, as they have valuable knowledge of work processes and customers that they can pass on to colleagues and successors. A smooth transition, in which the departing employee actively participates in a structured handover, can facilitate the onboarding of the successor.
  5. Improve return opportunities: Positive offboarding experiences can increase the chances that former employees will even (want to) return.
  6. Prevent legal conflicts: Good offboarding can avoid legal disputes if employees leave involuntarily. Outplacement consultations support the employee in starting a new career and can help to avoid conflicts.
  7. Observe data protection: Data protection and confidentiality must be guaranteed, as must the return of work equipment and access. Particular caution is required in the case of involuntary separations.

Conclusion

Successful offboarding is just as important as good onboarding. This is because it can help to protect the company's reputation and avoid problems. Successful offboarding begins in advance with clear communication of tasks and the transfer of knowledge and experience. On the last day of work, the employee should be given an appropriate farewell to ensure a smooth transition for everyone involved.