In today’s economic climate, where pressures mount and difficult decisions are inevitable, how companies manage employee transitions speaks volumes about their values and can have far-reaching implications for organizations.
The traditional approach to offboarding often resembles a hasty goodbye, leaving employees feeling abandoned and employers grappling with decreased morale and damage to company reputation. But what if we viewed this process not as an endpoint but as a transition phase that can yield benefits for both parties? It’s time to reimagine offboarding strategies that balance fiscal responsibility with employee support and long-term retention.
First and foremost, we need to address the elephant in the room: health insurance. Many companies still default to COBRA as the primary option for departing employees, often subsidizing it within severance packages. This approach, while well-intentioned, can strain employer health insurance plans, increase premiums, and expose the company to high-cost claims.
A genuinely supportive offboarding process goes beyond administrative tasks; it’s a deeply human moment that requires empathy and foresight. Here are some strategies that organizations can use to transform this often-overlooked phase into a cost-effective, reputation-protecting process:
- Proactive Communication: Maintain consistent, empathetic contact with employees through personalized calls and emails, offering assistance and providing timely enrollment deadline reminders.
- Tailored Support: HR professionals seek to tailor their offerings to the individual needs of employees when designing benefits and compensation packages. Offboarding should be no different. Employees leaving an organization should be able to access tailored, personalized options based on their own circumstances.
- Cost-Effective Coverage: COBRA alternatives exist that don’t break the bank for employees while reducing the risk of high-cost claims for employers. In one case study, by showing COBRA options alongside alternatives like the ACA, When’s AI-powered health insurance marketplace empowered 61% of exiting employees to choose more affordable plans, saving an average of $226 monthly on premiums.
- Extended Care: When feasible, employers should consider offering fully paid premiums, which can significantly easing the financial burden during critical transition periods.
- Career Transition Tools: Providing employees with resources to support them in their search for a new job not only cultivates goodwill, it preserves a company’s brand and can help foster a healthy alumni network and potentially encourage “boomerang” employees.
The impact of these strategies can be significant. In a recent case study by When, over 93% of outgoing employees agreed with the value of a holistic post-employment support platform. Moreover, the way companies treat departing employees profoundly impacts those who remain. A respectful, supportive offboarding process reassures your current workforce that they are valued, boosting morale and retention rates.
The costs of poor offboarding are hidden but significant. They manifest in increased turnover, damaged company reputation, and lost opportunities for valuable alumni networks. By investing in thoughtful, supportive offboarding strategies, we can navigate economic challenges in a way that respects employees, protects the employer brand, and positions companies for future success.
Every hello eventually leads to a goodbye, and how we manage that farewell speaks volumes about certain companies’ values. It’s not just about processes or protocols – it’s about people. Real people with hopes, fears, and futures that extend beyond our company walls.
I challenge all of us to view offboarding not as an administrative task but as an opportunity to show gratitude, provide support, and ensure that every person who’s been part of the journey leaves with dignity and respect. In doing so, we not only fulfill our moral obligations but also make a smart, cost-effective business decision that will pay dividends long into the future.
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ABOUT THE AUTHOR
Andrew Hamilton
CEO and Co-Founder at When Insurance
Andrew Hamilton is the CEO and Co-Founder at When Insurance. Additionally, Andrew Hamilton has had 2 past jobs including Co-Founder & COO at Apartment Jet.
