Traditionally, HR department employees measure the effectiveness of their recruitment processes using HR KPIs, for example, cost per hire, time to hire, and acceptance rate. They also examine the efficiency and retention of employees by tracking such metrics as turnover rate, employee satisfaction index, and absenteeism rate. However, one important process often overlooked is offboarding, which concentrates on preparing employees for their departure. In this blog post, we’ll explain the essence of the onboarding process, why it’s so important to carry it out properly, and what related HR metrics to watch. Read on to find out more.
4 essential HR metrics – table of contents:
- What is offboarding? Employee offboarding checklist
- Key HR metrics you need to track in the offboarding process
What is offboarding? Employee offboarding checklist
Offboarding is a process executed by the HR department that is becoming more and more commonly implemented in the workplace. It aims to properly plan and carry out an employee’s departure from their position, no matter whether it was their decision to leave or not, to minimize the associated stress for all parties involved. Although the specific elements of the process depend on the company and its organizational culture, it typically includes the following stages:
- Notification – it can be initiated by either the employee (voluntary departure) or the employer (termination) and must be given in writing. Before submitting a written notice, the employee and the employer may discuss the reasons for leaving or terminating the contract.
- Transfer of responsibilities – the departing employee’s duties and responsibilities need to be transferred to other employees or documented for future reference. This stage ensures that there is no disruption to the organization’s operations and that there is a smooth transition of work responsibilities.
- Exit interview – exit interviews are conducted with the departing employee to gather feedback on their experience with the organization and the offboarding process. This stage provides an opportunity for the organization to improve its processes and address any issues.
- Final administrative tasks – these tasks may vary depending on the organization, employment mode, and individual situation. Some common tasks include returning equipment, transferring access to accounts, cleaning the desk, and resetting all passwords.
- Reassignment or replacement – at this stage, the team leader must decide whether to fill the vacancy by opening a recruitment process or reassigning the role to someone within the team.
Key HR metrics you need to track in the offboarding process
Offboarding is an important process that is often undervalued in the workplace. It can have a significant impact on whether a departing employee has a positive or negative view of the organization, which can, in turn, affect the company’s employer branding. Therefore, it is essential to evaluate whether the offboarding process has been conducted effectively. Below are some key indicators to consider when evaluating the offboarding process.
Exit interview completion rate
Exit interviews are a crucial part of offboarding and show employees that their opinions still matter. All companies, regardless of size, should conduct them. Exit interviews provide valuable insights into the reasons for an employee’s departure and offer reliable feedback on the company, team, or supervisor. The exit interview completion rate can measure the effectiveness of the offboarding process. It’s calculated by comparing the number of exit interviews to the total number of departures. The higher the completion rate and the more feedback you managed to obtain from the departing employee, the more successful your offboarding process is.
Status change processing time
The efficiency of the offboarding process is directly related to its duration. The more quickly it is completed, the more effective the team responsible for the procedure is. To measure this, you can calculate the time it takes to perform all tasks related to the employee’s departure, starting from the moment they submit their resignation until the last day of their work. It’s important to assess whether there are ways to optimize the process and ensure that everything is done within the legally specified timelines or in a way that’s comfortable for the employee. However, to ensure accuracy, it’s crucial to differentiate between voluntary resignations and terminations when measuring this indicator.
Measuring this metric will help you prepare for potentially lengthy retirement processes that may take in the workplace. It’s essential to take extra care of retiring employees by initiating the offboarding process earlier (such as gradually reducing the number of working hours or tasks) and giving them ample opportunity to pass on their knowledge at a comfortable pace. To calculate this metric, divide the number of employees approaching the retirement age set by law by the total number of employees. This will provide you with demographic information about your company while enabling you to anticipate and plan for future offboarding needs.
When an employee leaves the company, it is the last chanceto gather feedback and learn their opinion about the organization and its processes. It’s a good idea to send a survey to departing employees on their last day of work, covering various areas such as formal procedures, feelings during conversations with their supervisor or team members, and the exit interview. This way, employees can provide suggestions on what you should improve or change to ensure a better offboarding experience.
Conducting offboarding properly not only facilitates a smooth transition but also helps to leave a positive impression on the departing employee, especially if they are talented. This can increase the likelihood of future cooperation. As such, the offboarding process should not be neglected by the HR department, especially when it is becoming harder to find suitable employees. Measuring the above-mentioned metrics may provide valuable insights and help to make significant changes to the company’s operations. Consequently, it can lead to a decrease in turnover rates.