So your top employee has resigned. Now what?
When one of your top employees resigns, expect that some people on your team will closely watch how you respond. Some might start to think about whether they should also consider looking for new opportunities. Others may question if there are issues within the company. While some may move on from the news quickly, it’s important to handle such sensitive situations carefully. When an employee who has made a positive impact leaves, it often brings down the morale of the remaining staff. Don Valentine, founder of Sequoia Capital, mentions on the RingCentral blog that “Disruptions can sneak up on you or any other company.” Companies must be ready for any changes that could affect their operations. Here are some points to remember if a top employee submits their resignation:
Accept and reflect
Many employees leave due to problems with management. This is why it’s tough for some managers not to take resignations personally; the actual reason for leaving could be the managers themselves! Usually, an employee won’t directly tell you that you or the company is the problem, as they want to avoid burning bridges. However, you can discover the real reasons by letting the employee speak openly about their decision and paying attention to what’s not said. There might be issues you can address to help reduce future turnover, such as bullying from coworkers, pay concerns, personal problems, stress, or others. Instead of reacting negatively, accept the resignation calmly and reflect on yourself. Are there valid points in their reasons for leaving? Is there something you can do to improve company policies or your management approach to retain other valuable employees?
Explore the merits of a counter-offer
There are several risks associated with making a counter-offer. A top performer who has resigned has probably already weighed the pros and cons of leaving. However, Lance Haun over at TLNT says that counter-offers can work if they are done right. You should be selective about who to give counter-offers to and let some of them go without a fight, since counter-offers could be used by some employees as a strategy to ask for a salary increase. Counter-offers are not a retention technique or salary negotiation tool. However, they are a last ditch effort to keep employees if the costs of them leaving are greater than allowing someone else to take the reins. You need to factor in what the impact will be on your team if the person leaves, how employee will be affected if the counter-offer is accepted (the loyalty of the employee who resigned might come in question), and all the non-monetary costs the employee will be taking with him if he leaves (product knowledge, strategies, etc.). That said, be prepared for your employee not to accept your counter-offer. Best policy is to identify and prevent possible problems even before your valuable employees resign. Also, make sure that your senior employees are mentoring other employees, so your company won’t be crippled if someone leaves.
Show your support
A good company will support and wish its employees well, especially if they know that these employees will be leaving for better opportunities. Don’t hesitate to give your recommendations and referrals if the employee deserves it.
Stay positive when you communicate the news
Of course, top management and other employees would have to be informed about important changes such as these. Show respect and be positive. Acknowledge the loss for the company and convey your appreciation for the employee’s efforts. Let your employee say his parting words and immediately get into action to put your team into transition.
Manage the transition phase
Never leave other employees hanging, especially when it’s about what they’re supposed to do next when a teammate leaves. Let the departing employee work with his colleagues and allow those left to volunteer for tasks. Don’t overload the employee on his last two weeks on the job, so he can efficiently help you with the transition phase.
All in all, it’s important that you handle changes such as this with grace. Have you ever had to handle a resignation from a top performer? Or have you ever had to resign from a job? How did the company handle your resignation? Share your comments and experiences below.