The Top 5 Benefits Your Company Can Gain from Employee Offboarding Automation

Employee turnover is accelerating globally. Recent data shows that 57% of employees voluntarily left their jobs in 2020 alone.

As talent turnover increases, your company has to conduct more and more employee offboarding processes each year. Offboarding refers to all the tasks involved when an employee resigns or is terminated, such as:

  • Revoking access to email, servers, and internal systems
  • Collecting company property like laptops and keys
  • Archiving the employee‘s files and documents
  • Calculating final payments
  • Communicating the departure internally

And much more. This typically falls onto your HR team‘s plate.

The problem is, research shows only 5% of companies have automated their offboarding processes. The rest rely on manual efforts, which is inefficient, inconsistent, and risky.

But there‘s good news.

Offboarding is a prime process to automate. Implementing offboarding automation software can provide significant benefits for your company‘s HR team, IT staff, managers, and overall productivity.

Based on my experience advising organizations on HR automation, here are the top 5 benefits your company can gain:

1. Systematization for Consistent, Compliant Offboarding

Right now your offboarding is likely ad hoc and inconsistent. When an employee resigns, their manager scrambles to complete all the right tasks. Steps get missed. Policies aren‘t followed.

Automating offboarding lets you systematize it into a standardized process that‘s followed each time without fail.

The software allows you to:

  • Map out a step-by-step offboarding workflow
  • Configure the sequence of activities
  • Set automated reminders and notifications
  • Ensure compliance with company policies

For example, when a resignation date is entered for Jane Doe, the system can immediately revoke her access to all internal systems according to your protocols.

This systemization promotes consistency, compliance, and efficiency no matter who is being offboarded.

ConsistencyThe same process followed for every employee departure
ComplianceOffboarding done per company policies
EfficiencyAutomated workflow reduces manual efforts

2. Data Protection Through Access Revocation

When an employee quits or is fired, a top priority is immediately blocking their access to protected company data and systems.

The risk of them stealing confidential information, whether intentionally or not, is high otherwise. This can open the door to leaked trade secrets, intellectual property theft, and more.

Offboarding automation allows you to instantly revoke access and permissions to:

  • Email and Slack
  • File sharing systems
  • Databases and servers
  • Project management tools
  • Intranet sites
  • And more

According to one Forrester study, 77% of data breaches occur due to improperly offboarded employees accessing internal systems.

Automating system access revocation as soon as someone resigns is crucial for data protection.

Data securityEliminate access by departing employees
IP protectionAvoid theft of trade secrets, projects
ComplianceMeet data privacy regulations

3. Smooth Onboarding for New Hires

When employees leave, we need to hand-off their work and responsibilities to new hires and team members. This enables continuity.

But first we need to gather and organize all their relevant files and documents for the new person to reference. Without offboarding automation, this means IT staff manually digging through emails, servers, Slack channels and more.

Offboarding software solves this by automatically archiving necessary documents from all the employee‘s systems into a centralized location. This might include:

  • Email correspondence
  • Presentations and reports
  • Project plans
  • Customer contacts
  • Quarterly reviews
  • And more

This way, your new hire has instant access to what they need in one place to get up-to-speed faster. They aren‘t stalled waiting for someone to dig up the info they need.

According to recent research by Princeton University, poor onboarding processes result in:

  • 60% longer ramp-up periods – Without the right knowledge assets from previous employees, new hires get stalled trying to find information
  • Up to 2x higher turnover – Missing information frustrates new employees, causing them to leave at higher rates

Automated offboarding helps onboard new team members seamlessly.

Faster ramp upNew hires become productive faster
Increased retentionLower turnover by providing needed resources
Higher productivityLess time spent locating missing information

4. Proactive Internal Communications

When an employee leaves, especially if it‘s unexpectedly, spreading the word across your company is crucial. But emails and announcements easily get missed.

Offboarding tools can automatically distribute customized departure notifications to stakeholders like:

  • The employee‘s manager – Plan workload coverage
  • Their team members – Begin redistribute responsibilities
  • HR and legal teams – Initiate offboarding workflow
  • IT staff – Revoke access and collect devices
  • Marketing/sales – Communicate to customers if needed
  • And more

This ensures the right people are proactively informed so they can take appropriate actions to minimize disruption.

According to Gallup, 70% of voluntary turnover is due to disengagement and lack of communication from leadership.

Proactive, transparent communications around departures demonstrates engagement.

Cross-organization awarenessAvoid blindsides and surprises
Proactive planningEnable teams to adapt smoothly
Leadership engagementRetain top talent by being transparent

5. Seamless Final Payments & Offboarding Tasks

From calculating remaining PTO and severance eligibility to collecting keys and equipment, offboarding involves hundreds of administrative tasks.

Managing this manually results in errors, overlooked steps, and delays in employees receiving final payments. HR staff waste time tracking down info and performing calculations.

Automation handles necessary offboarding tasks without the hassle:

  • Final Pay Stub – Integrates with payroll software to automatically generate compliant final pay stubs, no matter the employee arrangement.
  • Severance Calculation – Pulls in tenure, contract terms, and other data to calculate severance packages correctly if applicable.
  • Equipment Return – Triggers automatic reminders about company assets to be returned like laptops, badges, and phones.
  • PTO Payout – Gathers number of unused vacation days from HR system and computes payouts according to state laws.

Offboarding automation eliminates frustrating guesswork so employees get what they‘re owed smoothly and you avoid any compliance risks.

AccuracyAvoid incorrect final payments
ComplianceAlign with employment laws
EfficiencyAutomate manual offboarding tasks

Implementing offboarding automation enables you systemize and streamline one of HR‘s most frequent and labor-intensive processes.

Based on the experiences of many organizations I‘ve advised, here are some of the biggest benefits you can expect:

  • Consistency in offboarding process regardless of who is leaving
  • Data protection by instantly revoking access
  • Accelerated onboarding of new hires with archived resources
  • Proactive communication across your company
  • Elimination of guesswork for final payments

While just 5% of companies have automated offboarding today, leading organizations are quickly adopting these tools to drive productivity and retention.

Does your organization need help implementing offboarding automation or other workforce technologies? Our team of experts can guide you – just click below:

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