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9 Things to Consider When Dealing With an Employee Exit

Employee exit contemplation

Contributed by Dennis Hung

Sometimes, through no fault of the employee, employers need to transition employees out of their company. Downsizing, bankruptcies, mergers, or buyouts can result in large scale employee exit. Employers should try and help these employees deal with the anxiety and other challenges brought on by the layoff because your company’s reputation depends on it. Employers who don’t support the needs of their exiting employees run the risk of getting bad reviews and bad press.

Listen to Concerns

Transitioning out of an organization due to layoff can be a stressful time for employees. Many of them may not have faced a job search for many years. They may worry about money. They may feel personally hurt. When employees must leave the organization they’ve worked for a long time, they will look to management for guidance. This is a time when management should be open and honest about what is happening and show they care. They can do this by listening when employees want to discuss the employee exit.

Offer Outplacement Services

Employers can work with outplacement services to help their departing employees. The outplacement services can come from private companies, state resources, or various state agencies. A company can also help employees create their resumes. If employers themselves don’t know how to create resumes, resume services can help fill the gap.

Provide Benefits Information

When many employees hear they will be losing their job due to something out of their control, they are shocked. This is a time when a company should meet with each individual employee and discuss with them the benefits they will receive after the transition. Employee exit packages could include severance pay, unemployment compensation, retirement plan, pension plan, health care, and more.

Know Your Legal Requirements

When a company is in the process of employees layoffs for any reason, there are many legal issues to consider. The level of legal requirements will increase with the number of employees. This could involve meeting requirements for closing-notifications and providing termination letters. A company is required to provide qualifying employees necessary information about their possible benefits under the Consolidated Omnibus Budget Reconciliation Act known as COBRA. It is also important that all final paychecks, as well as severance payments, are done correctly and on time. When employers properly handle these issues, the risk of litigation significantly decreases.


When a company is unionized, they will have a duty to bargain with their unions concerning the effects of the company’s transition. These types of negotiations often include determining the types of assistance a company will provide. This will involve benefits as well as the possibility of having union members get positions in other parts of the company.

Maintain a Positive Outlook

This is a time to challenge employees to view the exit as an opportunity. Employers should encourage exiting employees to take the initiative by trying to find the best possible solutions for their individual situation. It’s important for transitioning employees to focus on their future and what they can do about it.

Be Flexible

A company needs to give transitioning employees flexibility in their schedule. Many of them will need to have time away from work to go on job interviews. It’s also possible an employee may need time to attend training sessions as well as meetings with state unemployment representatives.

Consider Employee Incentives

Employee layoff periods can be difficult. A company should consider providing perks to employees they need to retain until the last day. Employers can plan to increase the amount of a severance package based on a performance. Some companies have offered a retention bonus at the end of the process. These are effective strategies for keeping employees motivated until their last day.


There are things a company must do to remain as competitive as possible in the business world. Many of them could result in a company experiencing a major change in the structure of their organization. When this happens, it could require employees to be transitioned out of the organization. There are things a company can do to assist their employees and make the transition process go as smoothly as possible.

Dennis Hung is a writer of all things business. He’s an expert in sales planning, strategy, pricing, and product Marketing. He has extensive knowledge in organic-only SEO, social media marketing, lead generation, and management consulting.

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