Why You Need To Improve The Employee Exit Experience

Despite more focus and attention being placed on employee experience than ever before, there’s a critical stage of the employee lifecycle that’s currently being neglected… the exit experience.

Less than half of voluntary leavers in the US were happy with how their employer handled the exit process, with many citing rudeness or hostility. Not only does this put organizations at risk of reputational damage, but it also negatively impacts trust and destroys any potential for future rehires or talent referrals.

It’s certainly a blind spot. But it looks to be a conscious blind spot, as a 2023 survey of 150 CHROs at Fortune 500 companies found that only 10% felt their organization was ‘highly effective’ at the employee departure stage.

While there are many things we can all do to improve the employee experience and increase retention, a certain level of voluntary turnover is unavoidable. It would be unrealistic to think we could keep 100% of our employees forever, particularly the most ambitious individuals who may be more likely to seek new challenges within different industries.

So why does it matter? Is it really worth investing time and energy into employees who are on their way out the door? Absolutely. Here’s why.

The benefits of improving the employee exit experience

However you look at it, the exit experience is a key part of the employee lifecycle. Employees may exit your organization for any number of reasons: retiring, moving away, or changing career paths. But regardless of the reason, their experience on the way out is just as important as their experience on the way in.

There are three clear benefits of prompting a positive exit experience. And with one study suggesting that nearly 50% of people are considering changing jobs this year – even more than at the height of ‘the great resignation’ – employers need to act fast.

1. Creating a network of brand ambassadors

Companies that don’t proactively engage their leavers are missing a huge opportunity to create a network of brand ambassadors who will speak positively about their time with the organization. We’ve all used a site like Glassdoor or Comparably to check out the reviews and ratings of a potential employer. A positive review from an employee who’s on their way out the door can be worth its weight in gold.

Aside from leaving positive reviews and bolstering the organization’s reputation by speaking fondly about their experience, satisfied leavers are 43% more likely to recommend their previous company as a great place to work. These referrals are incredibly valuable, particularly when you consider that the leaver may be taking the next step up the career ladder. Their professional network will likely contain a pool of highly skilled potential future candidates, so a positive recommendation will mean a lot.

2. Encouraging ‘boomerang employees’

Recent research across multiple industries has found that around 28% of ‘new hires’ are actually returning employees who had left within the last three years. These new joiners are referred to as ‘boomerang employees’.

A 2024 study even found that 56% of UK employees would consider returning to their previous employer, highlighting a big opportunity for organizations that are currently neglecting the engagement of their leavers.

Hiring a recent ex-employee can provide a number of benefits, including –

• A quicker onboarding process
• Reduced training costs 
• Greater alignment with company culture 
• Increased engagement and loyalty

It goes without saying that employees that leave the organization on a positive note are much more likely to return, if the opportunity were to arise. So thinking about the ways you can improve the exit experience can be super helpful for the future!  

3. Strengthening trust

Investing in a positive exit experience is a powerful way to build organizational trust – both internally and externally.

Aside from the obvious benefits to your external employer brand, proactively engaging leavers can help cultivate an internal culture where employees feel genuinely supported and valued. Handing in your resignation is a nerve-wracking task, even for the most confident of us. So organizations need to demonstrate that employees will be treated fairly and respectfully at such a pivotal point of their career.

It’s all about cultivating psychological safety among employees, which is a baseline requirement for having an engaged and productive workforce.

People will always remember an ex-employer who reacted negatively to their resignation, and who was unsupportive or acted inappropriately throughout their notice period. Likewise, they will remember an ex-employer who showed respect and honored their decision, supporting them along the way. And they will share their experience with colleagues, friends and family members. That's what strengthens trust and builds a solid team culture.

How to improve the experience for leavers  

The reasons are pretty compelling, right? So what can be done to improve the exit experience? Read on, I’ve got your back.

If you can only do three things, make it these.

• Listen to the reasons, and invite feedback: Use both formal feedback mechanisms – such as exit interviews and leaver surveys – and informal feedback mechanisms – like non-judgemental conversations with the line manager and head of department. There’s a good chance you’ll gain valuable feedback about what the leaver liked or didn’t like, which can help you elevate the employee experience for those staying.
• Recognize and celebrate achievements: Help your employees leave on a positive note by recognizing and celebrating the things they achieved during their time with the organization. On top of promoting a culture of recognition across the company (which is proven to increase employee engagement), it will encourage a sense of pride in what the leaver has achieved and will likely spark gratitude for their time with the company. In my eyes, it’s a total win-win.
• Keep the door open: Make sure you keep the door open for potential boomerang employees by cultivating relationships that will continue after a member of staff has left. As an example, Deloitte encourages former employees to join the Deloitte Alumni Network – allowing leavers to stay connected with colleagues who are still in the organization and giving access to networking opportunities with more than 20,000 other alumni members.

Support the total employee experience with Workvivo

Of course, any efforts to improve the employee exit experience will be relatively futile if you’ve not invested in elevating the experience of your people throughout the entire employee lifecycle.

The bad news is that less than a third of employees report feeling engaged, enthusiastic, and energized by their work, according to Gartner. But the good news is that Workvivo has built a world-class employee experience platform that bolsters engagement, improves communication, and promotes inclusivity.

The solution helps build a more connected work culture, supporting a sense of belonging throughout the entire employee lifecycle.    

Come and say hello if you’d like to schedule a free demo!