Master the art of off-boarding to ensure your business is keeping employees happy and content, even when they’re exiting. Here we explore proven strategies and best practices for a first-class off-boarding experience
CREDIT: This is an edited version of an article that originally appeared on SME News
Every employer’s journey with their staff doesn’t just conclude on their final workday. Departures, whether due to retirement, a career shift, or redundancy, hold significance for both employees and the organisation. It’s an opportunity for businesses to leave a lasting positive impression, enhancing their reputation as responsible employers.
Signposting for employee benefits
The foundational step in off-boarding is the notification of an impending end to employee benefits, guiding them towards acquiring equivalent arrangements should they wish to continue. Surprisingly, many employers overlook this crucial task, leaving departing employees in the dark. Responsible employers are crystal clear about the termination date for benefits.
This date can be pivotal for employees, particularly in ensuring uninterrupted private medical insurance coverage. This is especially crucial when employees or their covered family members have pre-existing medical conditions or upcoming medical procedures. Insurers might require employees to initiate personal policies shortly after their official employment end date. The employer can help departing employees comprehend the fate of their insurance coverage and grant them access to the company’s insurance broker, who can assist in securing alternative coverage.
Navigating retirement: Beyond the administrative tasks
Leaving a company, especially after a long tenure or retirement, is a life-altering transition. Besides the practical aspects, employers should consider the psychological facets to ensure a seamless move into the next phase of life.
Retirees have varied needs; some may prefer a gradual reduction in responsibilities and working hours, while others require in-depth retirement planning services to optimise their financial and non-financial prospects.
Responsible employers can offer three primary retirement services:
Pre-retirement planning: As employees approach retirement, they can benefit from education and support services that inform them of their decisions and options, covering financial and non-financial aspects. These services usually include workshops that help employees set their retirement lifestyle goals and build a financial plan to achieve them.
Retirement planning discussion: Many employers provide telephone-based services to guide employees through pension-related decisions just before retirement.
Independent financial advice: Employees with complex financial needs may require the services of an independent financial advisor (IFA). Employers can choose to facilitate or finance IFA services. Some employees may need IFA assistance to create even a basic retirement plan.
Mercer Marsh Benefits’ two-stage approach
Mercer Marsh Benefits (MMB), a leader in workplace health and benefits, advocates a two-stage approach to the off-boarding process: evaluate and address.
In the evaluation stage, businesses assess their exit processes and communications. They aim to ensure clarity in conveying crucial information, like the end date of employee benefits coverage, and guide departing employees towards suitable alternatives.
The addressing stage involves considering how existing procedures can be enhanced to leave a lasting impression of a responsible employer at all stages of an employee’s career.
MMB advises working with an employee benefits consultant familiar with best practices across sectors for employees considering retirement. These consultants need a deep understanding of the market to fill support policy gaps, offer competitively priced options, and ensure a robust and cost-effective off-boarding process.
In essence, effective off-boarding isn’t just an HR process; it’s a strategic move for small business owners. It influences how your company is perceived, helps retain and attract talent, ensures legal compliance, and safeguards the well-being of your employees. All of these factors directly impact your business’s growth, sustainability, and success.
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