Employee Separation is the process of ensuring that an employee who
quits the company is exited in a structured and orderly manner. The
process of employee separation is taken quite seriously by many firms
and there is a dedicated department to handle employee exits from the
company. In this article we discuss the process of employee separation
and the differences between voluntary and involuntary exits.
Voluntary and Involuntary Separation
Employee separation can be voluntary as well as involuntary. The former
is when the employee quits the company on his or her own accord. This is
the most common form of employee separation though in these
recessionary times, involuntary separation or the act of asking the
employee to leave by management is quite common. This form of employee
separation where an employee is asked to quit is called involuntary
separation. The difference in these two forms of separation is that for
voluntary exits, the employee stands to get most of the benefits and
perks due to him or her whereas when an employee is asked toleave,
he or she might get a separation package or in instances where
disciplinary or performance related exits take place, the employee might
not get anything at all.
Components of the Employee Separation Process
The employee separation process starts from the time the employee
gives notice to his or her employer about the intention to quit. This is
usually called “putting in one’s papers” because in earlier times, an
employee was required to submit a formal resignation letter, though in
recent times, this is being done by email. Once the employee gives
notice, all the financial transactions and records of the employee are
“frozen” by the HR department and the employee’s manager is tasked with
the process of ensuring proper handover and closure of work tasks
allotted to the employee. Usually, the notice period ranges from a month
to two to three months depending on the level at which the employee is
working. Further, there has to be a well defined handover plan drawn up
by the employee’s manager that covers all aspects of closing out on the
work that the employee is performing.
Participants in the Employee Separation Process
Typically, the employee separation process proceeds along two
parallel tracks. One involves the employee and the manager and is
concerned with the handover of work and other tasks. The other track is
by the separations team and deals with the employee benefits accruing as
a result of separation as well as other benefits like PF (Provident
Fund), Gratuity (If applicable) etc. The HR manager is needed at all
steps of this process and in the final exit interview that is conducted
to assess the reasons for the employee leaving the company and taking
the employee’s views on work and the company in general as well as any
“de-motivating” factors that might have caused the employee to resign.
Conclusion
In recent years, with the high levels of attrition in the service
sector, it has become imperative for firms to have a structured
separation plan for orderly exits of employees. Of course, the concept
of “pink slips” or involuntary exits are another matter altogether and
involve some bitterness that results because of the employee losing his
or her job. In conclusion, it is our view that employee separations must
be handled in a professional and mature manner and though attrition is a
fact that concerns everyone in the industry, once an employee decides
to leave, the separation must be as smooth as possible.
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