While we certainly all wish our best employees would stick around forever, it's natural for many to move on at some point - and in these cases, resignation is one common method. As an HR manager or even a company owner, what are some of the chief steps that should be taken when an employee informs you that they will be resigning their position?
At Integrated Companies, we're happy to offer a wide range of employer HR solutions, including human resource management areas that cover numerous topics - resignations among them. And while each organization's precise approach to handling resignations will vary somewhat, here are some of the key areas that will often be covered, and which we'll be happy to assist you with as needed.
Confirming Resignation and Obtaining Resignation Letter
In most cases, it is important to have the employee confirm their resignation in writing. This can take the form of a formal resignation letter, or simply an email or other type of communication that confirms the employee's intention to leave the position. Depending on your company's policies and procedures, you may want to provide a template for this document.
Once this document has been signed, you want to keep it in your records, as the date of resignation can be significant for various areas, such as payroll, benefits, and other employer-related issues.
Provide Any Required Notices
Depending on the state, there may be specific requirements related to giving notice of resignation. For example, some states may require employers to provide the employee with a certain number of days’ notice prior to the employee's last day on the job.
You will want to review your state-specific regulations in order to ensure that all applicable notices are given and that all requirements are met in accordance with the law.
Transfer Knowledge and Responsibilities Properly
One of the most important steps you'll want to take when an employee resigns is to ensure that their knowledge and responsibilities are properly transferred. This can be done by having the resigning employee provide a list of tasks and duties, as well as any important information that will need to be provided to their successor.
You may also want to consider providing additional training for the successor, or arrange for the departing employee to stay on in a consulting role for a certain period of time. This will typically depend on the type of position and the nature of the organization.
Be Sure to Follow Final Pay Laws
Another key area to consider is the employee's final paycheck. Depending on the state, there may be specific laws regarding when and how an employee's last paycheck must be issued. You'll want to ensure that you comply with all applicable laws in this area in order to avoid any potential legal issues.
There are also federal laws at play here that must be followed in any state. Final pay will always be due by no later than the next regular payday (though some states may be more stringent).
In addition, accrued vacation time or other forms of pay may need to be included in the employee's final paycheck. Again, you'll want to ensure that all pertinent laws are followed and that everything is handled properly.
Finally, you will also want to provide the departing employee with any remaining benefits that they are entitled to receive per their contract.
Collect Company Property
If the departing employee has any company property - such as computers, phones, access passes, or other items - you will want to ensure that these are collected and returned in a timely manner. You may also want to consider reaching out to them periodically (such as through email) in order to remind them of their obligation to return company property.
In addition, you may want to consider revoking their access to any company accounts or websites, as well as changing passwords and other sensitive information.
Confirm Mailing Address
Because you may need to send the employee important documents after they have departed, it's also a good idea to confirm their current mailing address in advance. This will ensure that you are able to send them any pertinent information and paperwork as needed.
While this isn't as much of a legal requirement in most cases, it's also a good idea to provide the resigning employee with constructive feedback on their performance. This can help them to better understand any areas where they may need improvement, and it can also give them an understanding of what impact their work made during their time at the company.
In many cases, this is done via an exit interview, which can help to provide valuable insights for the company as well.
Notify Other Staff or Customers
And finally, you may need to notify other staff members or customers that the employee is leaving. Depending on their role, this could include informing other staff of a change in leadership, as well as providing any necessary customer notifications and updates.
These are just some of the key steps to take when an employee resigns - but it's important to ensure that all applicable laws are followed and that all necessary steps are taken. Doing so will ensure a smooth transition for both the departing employee and the organization.
For more here, or to learn about any of our payroll, CPA or other employer HR services, speak to our team at Integrated Companies today.