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Handling Employee Terminations & Offboarding with Benefits in Mind

Terminating employees is never an easy thing to do. It’s unfortunately a regular part of life as a business leader, though, and needs to be approached in a professional manner just like all other aspects of the company. 

There are a lot of emotional and logistical aspects to consider with employee terminations and offboarding, but coming up with a structured plan on how to handle it will make the experience easier. 

In this article, we’ll focus on how to handle employee terminations and offboarding with benefits in mind. 

Create a Positive Experience 

Terminations and offboarding are processes that often have a negative connotation, simply because someone is losing their job. This fact can lead to a lot of negative effects not just for the employee but for the company if the termination and onboarding isn’t handled properly. 

Companies should create as positive an experience as possible for the employee who is being terminated that takes into consideration their emotions and standpoint.  

Try to avoid being combative and feeding into any negative reactions the employee has. This will help you disseminate information about final paychecks and severance (if applicable), continuing benefits, unused PTO and more. 

When you create a positive experience, the employee is more likely to be open to receiving this information and being cooperative in things such as turning over keys and access to other company information they may have.  

It will also help leave as good a lasting impression in their minds as you can, which can go a long way in how they view your company and talk about it to others. 

Structure the Logistics 

The offboarding process typically involves a lot of logistics and paperwork. It’s usually not as simple as telling a person they are no longer employed at your company. 

From an HR standpoint, you need to ensure that the employee has all the relevant information about their final paycheck — when they’ll receive it, what date they’ll be paid through and whether they’ll be receiving extra compensation such as a cashout for unused PTO or severance. 

Benefits are also a big part of the offboarding process. The employee needs to be informed about their rights to continue their current health insurance, if they get it through you, via COBRA, as well as their costs, how it gets paid and when it’s available until. 

They also need to be provided information regarding retirement plans, how they can transfer their money out of their current accounts and other rights they have in relation to it. 

Since you will be dumping a lot of information in the person’s laps in this offboarding meeting — and since they may not be able to fully grasp it due to the emotional aspect of the process — you should have supplemental printed materials available to give to them. 

Ask Questions in an Exit Interview 

Offboarding is actually a great opportunity to gather relevant feedback about your company and your benefits package. Employees often don’t hold back and are very honest about sharing their opinions on matters after they’ve been terminated — since they know what they say can’t affect their job in any way. 

If you’ve created a positive offboarding experience so far, you will be more likely to gain insightful information rather than just negative responses from an angry former employee. 

Exit interviews can easily go off the rails, though, and just turn into venting sessions for the employee. If you control the interview, though, by asking positive questions, you’ll be more likely to gain valuable information. 

For example, you can ask what they liked about the employee benefits package and what they enjoyed while working there. Those questions are likely to elicit more positive responses, which can then lead to honest feedback about some holes that you may be able to fill for other employees. 

By allowing the employee to give their feedback and by actually engaging with them in an exit interview, you are displaying empathy to the person who just lost their job. This positive experience can trickle down in other ways to the employees you still have on staff, and to prospective employees and customers who may interact with the terminated employee. 

Create a Structured Offboarding Process with Beckham Ellis Insurance Group 

Terminations and offboarding are never easy, but they are a necessary part of doing business. When you create a well-thought-out and structured offboarding process, you’ll be ensuring that you are as positive as possible and complying with all regulations when it comes to pay and benefits. 

At Beckham Ellis Insurance Group, we can help businesses not only create attractive employee benefits packages but also create structured processes for  essential HR functions such as terminations and offboarding. 

If your business is located in the South Carolina or Georgia region, contact us today to learn more.