HR Essentials: Creating a Good Offboarding Plan   

HR Essentials: Creating a Good Offboarding Plan 

Your guide to an effective offboarding process.   

What is offboarding? Offboarding is a process you can follow when an employee leaves your company.

Leaving a company can be emotional for the employee, their coworkers, and others. Emotions could range from excitement to anger and anything in between. Be prepared for what may happen. This is a good opportunity to show empathy and kindness, even if it is difficult. The way you offboard is just as important as how you onboard and is a true indicator of company culture and values.

Terminology & Reasons

Before we discuss the process, let’s cover common terminology related to offboarding and some reasons for offboarding.

Voluntary termination (aka Quit or Resignation) is when an employee chooses to leave a company of their own free will. This is often accompanied by a resignation letter or email. Employees in many states (Pennsylvania included) are not required to give notice, though it is typically a good practice. 

Involuntary termination (aka Fired or Terminated) is when the company decides to end the employment relationship. This could be a decision based on performance (not showing up for work, insubordination, etc.). Involuntary Termination may also include layoffs, company closures, an end to seasonal employment, or other reasons where the employee is losing their job through no fault of their own.  

Any of this terminology is generally known as a termination because employment ended, regardless of the reason.

Pro-Tip: Before deciding on an Involuntary Termination based on performance, ask this question: Does the employee have the equipment, tools, and information they need to perform their job well? 

Step #1: Offboarding Preparation  

Just like an onboarding process, being prepared for offboarding will ensure a smooth transition for the employee and the company. Taking the time to prepare a uniform process is easy to replicate and gives every employee a similar offboarding experience. 

• Prepare the necessary documents. This may include:
  • A termination letter – stating whether the termination was voluntary or involuntary.
    • If involuntary – succinctly state a reason why employment ended (“for failure to report to work”). You may need to produce this document if the employee files for unemployment compensation.
    • Also include information regarding the employee’s final pay, when their benefits end, or other vital information
  • A checklist that notes the to-dos needed to process the employee’s termination with the company.  

Step #2: Offboarding Tasks 

Regardless of why the employee is leaving, it’s good practice to follow these steps so everything is communicated and wrapped up well.  

• Confirm the employee’s address and phone number in case you need to contact them after their termination. 
• Update company payroll and confirm how the employee will receive their final paycheck (direct deposit, picked up, or mailed).  

Pro-Tip: Final paychecks cannot be held past the next payday, even if the employee has not returned all company property. 

• Term the employee’s benefits and provide COBRA paperwork (required if you have a group medical plan with at least 2 employees).
• Provide retirement plan contact information.
• Provide the company’s unemployment account number and how to contact the state’s unemployment office (for involuntary terminations).
• Contact the IT department to stop or forward the employee’s company email.
• Provide reference check information to the employee (who to contact for a reference). 
• Collect company assets – this may include keys, uniforms, equipment, or other items.
• Perform an exit interview (recommended for voluntary terminations)
  • These are typically done by HR, a manager, or the company owner and are used to help you determine why an employee chose to leave the company.
  • A good exit interview gives you feedback on the employee’s manager, their work, benefits, and compensation. 

We can help you develop an offboarding process and documents that fit your unique company needs and culture. Offboarding an employee can feel daunting, but we’re here to help streamline your process for an easier, worry-free experience for you and your employee.