Offboarding

Offboarding is the process of disengaging a team member from their position within a company, a practice used both for people who choose to leave, and for those who are laid off.

While the onboarding process is reminiscent of boarding a plane (and helps new hires acclimate to a new job), the offboarding process is akin to disembarking (and provides people with a structured framework when leaving a position).

A good offboarding program should:

• Minimize disruption within the company
• Protect confidential company information
• Gain helpful feedback from the exiting team member
• Provide the departing person with outplacement services, if necessary

<< Use our free offboarding checklist to give your people an exceptional offboarding experience. >>

Key insights

• Offboarding is a structured process that helps disengage a team member from their role in an organization, important for both voluntary and involuntary departures
• A well-executed offboarding program minimizes disruptions, maintains data security, and reinforces positive company culture
• Essential components of offboarding include updating colleagues, retrieving company property, transferring knowledge, and conducting exit interviews
• Offboarding policies help manage logistical challenges, safeguard against legal issues, and protect relationships between the company and departing team members
• Effective offboarding can lead to “boomerang employees,” where former team members return, benefiting from familiarity with company culture

Why is a clear offboarding process so important?

A clear offboarding process can protect your organization, strengthen your reputation, and leave a positive impression on departing team members. 

Here’s why it’s important:

• A lack of formal offboarding processes leaves 71 percent of companies vulnerable to risks.
• Only 64 percent of employees feel comfortable communicating frustrations in their work environment. 
• Alarmingly, 89 percent of former team members retain access to confidential company data and systems.
• Exit feedback matters to 93 percent of team members—and 87 percent believe their insights can help improve the experience for others.

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Maintain company reputation

Successful offboarding allows the employer and the exiting team member to maintain a relationship of mutual respect during and after the end of the business relationship.

Improve data security

Sixty percent of data breaches stem from insider threats, including former team members. To mitigate these risks, revoke access to company systems, retrieve company devices, and ensure all accounts are securely deactivated. These steps not only protect your organization’s data but also reinforce trust among current team members.

Leave room for boomerang employees

When a company takes the time to create a positive offboarding experience for departing team members, they not only end on good terms but leave the door open for future possibilities. An increasingly competitive job market has given rise to a phenomenon recruiters refer to as “boomerang employees”—people who return to an organization at which they were previously employed.

Recent research from The Corporate Culture and Boomerang Employee study highlighted that there are plenty of reasons to consider hiring a boomerang employee:

• 56 percent of HR professionals and 51 percent of managers give high or very high priority to boomerang job applicants who left in good standing.
• 33 percent of HR professionals and 38 percent of managers agree that familiarity with a company’s culture—and fewer training needs—are the biggest benefits of rehiring former team members.

Streamline the entire team member lifecycle

Implementing an offboarding policy from the start of the employee lifecycle ensures transitions are smooth and risks are minimized. Here’s how a consistent offboarding process benefits your organization:

• Reduces company risk: Having clear procedures in place limits the chances of errors or oversights during transitions, reducing legal and operational risks
• Protects brand reputation: A positive offboarding process demonstrates professionalism and care, leaving departing team members with a favorable impression of the company
• Maintains positive culture: Offboarding that aligns with company values fosters trust within the organization and reinforces a culture of respect and transparency

Reveal team members’ pain points

Offboarding is an opportunity to learn and improve. Through thoughtful exit interviews, organizations can uncover honest feedback about workplace challenges. For example, 93 percent of departing professionals believe their insights could help teams improve. 

Listening to these perspectives can highlight areas for growth, from leadership effectiveness to workplace conditions, so HR teams can take proactive steps toward enhancing retention and engagement.

Create a positive company culture

A good offboarding process benefits both the departing team member and those remaining, allowing the departing team member to leave on good terms, while maintaining company loyalty and engagement.

A comprehensive offboarding process that takes into account the wellbeing of all people can lead to a smoother transition period for everyone and builds a strong and vibrant company culture.

What is an offboarding policy?

An offboarding policy is a detailed and formalized plan outlining every facet of the exit process and enabling a smoother transition during the offboarding period for both the person leaving and the organization they leave behind. Without a clear offboarding policy, employers leave themselves vulnerable to potential security threats and legal issues, along with damage to the relationship between the company and an exiting team member.

An offboarding policy helps companies to:

• Manage the logistical challenges of a changing workforce and reassign responsibilities
• Create a consistent offboarding experience for everyone
• Minimize security risks by reclaiming company assets and withdrawing access to company accounts
• Prevent legal issues, e.g., contract disputes, compensation disputes, or wrongful termination
• Protect their relationship with the person leaving
• Keep brand reputation intact

<<Download this free offboarding template to put a respectful and streamlined process in place.>>

Best practices for successful offboarding

HR can create a comprehensive and compassionate offboarding program that ensures a smooth transition while maintaining positive relationships. By following these steps, organizations can protect their interests and support departing team members effectively.

1. Update co-workers

HR should promptly inform company members about the team member’s departure. This proactive communication helps manage expectations and minimizes the spread of rumors that could potentially harm the departing person’s reputation. Consider holding a team meeting or sending a company-wide email to ensure everyone is on the same page.

2. Draw up necessary legal documents

Prepare essential documentation such as a letter of resignation or termination, benefits documents, and a non-disclosure agreement. These documents protect both the employer and the team member, ensuring clarity and compliance. It’s advisable to have these ready in advance and securely stored in the company’s system for easy access.

3. Transfer of expertise

To ensure continuity, organize the departing team member’s expertise and knowledge for the next hire. It’s important to:

• Facilitate a time to gain a clear understanding of their daily tasks
• Document key processes
• Forward their client emails to a designated co-worker

This knowledge transfer is critical for minimizing disruption and maintaining productivity. By capturing the departing team member’s insights and workflows, you create a valuable resource for their successor and protect institutional knowledge that might otherwise be lost during the transition.

4. Retrieve company property

Maintain an inventory of all company property in the departing team member’s possession. This includes items such as:

• Laptops
• Keycards
• ID badges
• Uniforms

Surprisingly, 41 percent of companies neglect this crucial step, resulting in substantial financial losses and creating serious security vulnerabilities. Scheduling a specific time for equipment return is essential to ensure all company property is recovered and to prevent unauthorized access to sensitive resources after departure.

5. Communicate with IT

Work closely with your IT department to protect company privacy and secure classified information.

Promptly deactivate the departing team member’s access to all systems and data to safeguard sensitive content and preserve system integrity. This crucial step helps prevent unauthorized access after departure and should be executed systematically, following established IT protocols.

To support this process, implement a comprehensive digital offboarding checklist that includes revoking access to cloud applications, email accounts, customer relationship management systems, and any third-party platforms. Schedule virtual sessions with those who work remotely to confirm the removal of company software from personal devices.

Be sure to document each completed step to ensure accountability and demonstrate compliance with data protection regulations.

6. Plan an exit interview

Conduct an exit interview that is sensitive to the departing person’s needs and perspective. These conversations are a valuable opportunity to gain insight into your organization’s strengths and areas for improvement. That’s why it’s important to create an environment where the team member feels safe sharing honest feedback.

To make the most of the exit interview:

• Choose an interviewer: Find someone who is neutral to the team member, such as a manager from another team
• Provide advance notice: Allow the team member time to reflect and prepare thoughtful feedback
• Ask meaningful questions: Focus on their overall experience, leadership effectiveness, and suggestions for improvement
• Take detailed notes: This is a good way to track common themes and patterns across multiple interviews

Use the insights strategically to strengthen workplace policies, address cultural challenges, and boost retention among your current team.

<<Download, print, and use these exit interview templates for a proper farewell.>>

7. Show gratitude

Organize a farewell event, such as a goodbye party, and consider giving a personalized gift to express appreciation for the departing person’s contributions. This gesture of goodwill leaves a positive impression and reinforces a culture of respect and appreciation within the organization.

8. Recommend outplacement services

If the person is still looking for a new job, inform the departing team member of available support through outplacement services. Partnering with an outplacement agency can assist them in finding new job opportunities and provide an advantage in their job search. This support demonstrates the company’s commitment to their future success.

<< Use our free offboarding checklist to give your people an exceptional offboarding experience. >>

Free offboarding checklist template

Navigating the offboarding process can be smoother with the right tools in hand. Our free offboarding checklist template is here to help. It covers all the essential steps, ensuring you don’t miss a beat as you guide your departing team members through their transition.

Automate offboarding processes with HR tech

HR tech can help organize and streamline the entire exit process by:

• Creating a consistent offboarding process
• Ensuring that the person leaving has a positive exit experience
• Offering prompts, flowcharts, and checklists to ensure that all necessary handover tasks are carried out
• Providing an exit interview script
• Automating specific offboarding procedures (some programs can automatically send documents such as final pay summaries)

<<Download this offboarding template to put a respectful and streamlined process in place. >>

Offboarding FAQ

What is an offboarding email?

An offboarding email is a formal declaration from the employer evidencing the end of someone’s time with an organization. Whether offboarding is the result of a resignation, retirement, or termination, the HR department must provide a formal letter to manage the last days of employment.

An offboarding email is important because:

• It’s an acknowledgment of the leaving person’s contributions and achievements during their time with the company
• It often includes either exit interview questions or the opportunity for former team members to provide feedback on their experience, which can help the company to improve over time
• The specific wording used will impact—either qualifying or disqualifying—the leaving team member’s recourse to financial support from the government, if needed

Offboarding vs. onboarding

At first glance, onboarding and offboarding appear to be at opposite ends of the spectrum. Instead, think of onboarding and offboarding as the first and last chapters of a book: The introduction sets the scene while the conclusion ties up any loose threads. Yet, both are similar in that the complexity—and sensitivity—of each requires step-by-step planning, meticulously organized paperwork, and plenty of tact.

Onboarding is the process of familiarizing new team members with their organization, its culture, and its people. Offboarding, in contrast, is focused on maintaining a positive relationship with the person leaving, while tying up any loose ends and protecting the company from both legal and security threats.

Neither onboarding nor offboarding are without uncertainty and risk for team members and organizations. Without preparation and a formalized process on both sides, miscommunication and discontent can escalate.

How long does offboarding take?

The offboarding process can depend on the complexity of the role and the specific needs of the organization. While a two-week timeline may be sufficient for some people, senior team members or those in critical roles may require a more extended and structured transition.

Starting the process promptly after the decision to part ways allows adequate time for wrapping up tasks, transferring knowledge, and ensuring all administrative details are handled smoothly.

What’s the difference between the offboarding and termination processes?

Offboarding is a comprehensive process that covers all types of team member exits, including resignations and retirements. Termination, however, refers specifically to the involuntary end of employment due to reasons like performance issues or misconduct.

While it can be part of the process, offboarding focuses on ensuring a positive and organized transition for all departing team members, regardless of the reason for their exit.

Can a good offboarding process help in legal situations?

A good offboarding process can be a strong asset in legal situations. Companies can protect themselves from potential disputes by ensuring compliance with employment laws and maintaining thorough documentation. Properly executed offboarding minimizes the risk of wrongful termination claims and other legal challenges, providing a clear record of the steps taken during the departure process.

What type of companies should have an offboarding process?

Every company, regardless of size or industry, benefits from having an offboarding process in place. Whether you’re a small startup or a large multinational enterprise, a structured offboarding process ensures consistent handling of team member departures. It helps maintain a positive brand image, protects company interests, and fosters goodwill with departing team members, which can be invaluable for long-term success.