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How to Handle an Employee Resignation: 3 Do's and 1 Big Don't

Aug 26, 2024

Picture this: Joe is the manager of a large team that oversees high-value projects for their company. Joe relies heavily on his team’s star performer, Jane. So when Jane knocks on Joe’s office door and tells him she’s resigning, Joe is stunned and stressed out. What’s he supposed to do now?

Many managers can relate to this scenario. Like Joe, they might have experienced the shock of a great employee handing in their notice. In this situation, managers often think the best response is to find a way to make the employee stay. But counteroffers aren’t the solution.

Don’t: Offer a counteroffer.

The truth is that when an employee announces their intention to leave their role, their relationship with the company has irreparably changed. If their manager offers them a raise, a bonus, a promotion, or some other promise to keep them on the team, it’s the proverbial Band-Aid on a bullet wound.

Counteroffers aren’t a long-term solution to an employee’s career needs. And in fact, they create a lot more problems than they solve. They can create tension among team members who know their coworker isn’t fully committed to their work and who might be upset that this person got a raise and they didn’t. Counteroffers can also damage the relationship between an employee and their manager, who might start to distrust them going forward. In short, when a counteroffer is offered and accepted, no one ends up getting what they really want – or need.

Do: Trust the employee and respect their decision.

If an employee resigns, they probably have not come to that decision lightly. Changing jobs is stressful and has a huge impact on an employee’s life, so by the time they resign, they’ve carefully weighed their options and decided that a career move is in their best interest. It’s normal for a manager to be sad or shocked about their decision, but don’t try to change their minds.

There are a lot of reasons someone might decide to change jobs, and many of them are not a negative reflection on their current role, company, or manager. So don’t take the decision personally. Respect their choice, let them work out their notice, and support them during the transition period. In exchange, they may be willing to help you find or train their replacement.

Do: Treat this as a learning opportunity.

When a valued employee decides to leave, especially if it’s a surprise to their team, there’s a great opportunity to learn from the experience. Have a frank conversation with the employee about their decision. If they’re willing to offer feedback about the role, the team, the company, or your management style, listen to them and take it to heart. Thank them for their honesty. And consider following up with other team members to evaluate whether they share the employee’s concerns or feedback.

Important note: An exit interview should not be the only time you touch base with your employees. From the first interview to the exit interview, keep an open line of communication with employees. Get to know them. What makes them happy? What motivates them? What challenges do they face, and how can you support them? In addition, continuously evaluate your own management style and find ways to grow and improve.

Do: Take action on what you learn.

When an employee offers feedback, don’t just nod and smile – do something about it. If something isn’t working, find a way to fix it. Address any issues that you uncover, whether it’s with team dynamics, pay structures, or broken or inefficient processes and procedures. By making changes internally based on employee feedback, you can help prevent the rest of your team from making the same decision to leave.

At the same time, use that feedback and those changes to guide your search for the employee’s replacement. What adjustments can you make to the position description, pay range, schedule, or benefits to draw in the best candidates? What qualifications and experiences can you target in a new hire that will make them the best fit for the team they’ll be joining and the role they’ll be filling? What information and support systems can you provide a new hire to ensure their long-term success and fulfillment in the role?

When an employee resigns, it’s natural to think, “How can I get them to stay?” But don’t grasp for a short-term “solution” like a counteroffer, which can actually end up making things worse. Instead, wish the employee well, learn from them about how you can improve things for the rest of your team, and let their feedback guide your actions, both within the company and during the search for a new hire.

And remember: by treating the employee with respect during this process, you leave the door open for them to return in the future.

About the Author

Jeremy Carver

Jeremy began his career with Kimmel & Associates in 2006. He has spent his entire career with Kimmel & Associates serving the general construction market in the Mid-Atlantic region.

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