7 things NOT to do when an employee resigns (and what to do instead)

If you’ve ever had to take a resignation from one of your employees, you know it’s something that can be quite complicated to manage, particularly if it comes as a shock. While there are best practice guidelines on what to do when you get a resignation, we feel it might also be helpful to have a guideline on what not to do in these situations.
Don’t compromise your calm
People leave businesses all the time. This doesn’t need to be a disaster, although I know that it can feel that way sometimes. Remember that your employee has made their decision and that it’s now likely out of your control. Instead, focus on your next steps, don’t take it personally and use it as an opportunity to learn moving forward.
Don’t offer a pay rise
Unless pay is the single reason why they are leaving and they’ve made that clear, offering more money to someone who has agonised over the decision to leave will only delay the inevitable.
A resignation is not generally on a whim; especially a small business where they know, like and trust the people around them. If they’ve made the decision to move on, they’ve started to mentally disengage and while the extra money might buy another 3 or 6 months of their time, it won’t stop the resignation from coming around again.
Don’t delay creating an action plan
If your employee doesn’t have a proposed action plan alongside their resignation letter, it’s important to book a meeting with any relevant stakeholders to work through what needs to happen next.
If it’s most appropriate for you to come up with the plan alone, then block out some time in those first 48 hours to ensure it gets completed as soon as possible. Preparation and planning in these cases are key.
Don’t be afraid to communicate with your customers
This one is especially important for service-based businesses, whether B2B or B2C. Once you have your plan in place, control the narrative and get on the front foot. Communicate early to your customers that will be impacted by this person leaving.
For example, when someone comes in for their regular appointment with John, introduce them to Sarah who will be looking after John’s clients moving forward. Start building this new relationship early to ensure there isn’t a difficult changeover period.
If your employee has a short notice period that doesn’t leave time to wait for regular meetings to occur, pick up the phone and let your customers know that way. By ensuring that your customers are your priority during the transitional period, you’ll be able to avoid losing business over the situation.
Don’t automatically put up an ad for a replacement
During your action planning meeting, consider the hole this person will leave behind. Is it best their workload is distributed internally, and the salary saved for spending on systems or tech? When you really look at it, does the rest of the team have capacity to cope for the next 6 months? Do you actually need someone with more specialised skillset or particular experience to manage a project that might have come up prior to the resignation?
Replacing like for like straight away can be an easy trap and may lead to a similar outcome depending on their reasons for leaving. It’s important to take some time to review your structure and consider what you need rather than what you’re losing.
Don’t assume it’s them not you
Take the time to get a full understanding of why they are leaving and what you could have done better to help them during their employment with you. If that person has decided to leave due to a preventable problem in your workplace, then it is possible that some or all of the remaining team might be in similar positions.
It can be helpful to conduct an exit interview to listen to any feedback they might have and avoid defending your position. Even if you don’t agree with their feedback, their experience of working in your business is significant and could be the reason they’re choosing to leave.
If the rest of the team know, or assume, the reasons someone is leaving, it is important to consider ways you could change/improve things for those who remain, and any new hires.
Don’t treat them badly on the way out
This will give the person leaving a bad taste in their mouth right as they’re about to go out into the world and likely be asked about their experience with you. And, more importantly, it may create the perception for the team that remain that you don’t really care about them as people, only as cogs in the machine fulfilling a role. This can have a significant impact on the future performance of your team and whoever you choose to replace this staff member with.
DO take the time to reflect and reset.
While there might be an initial period of pain, a change in the team is often a great line in the sand and who knows what opportunities might come your way now that you’re forced to be open to them!

Kateena is the founder of Davy Partners. She works with businesses of all sizes, from employing their first team member to supporting implementation of initiatives for more than 2,000 employees. Her passion lies in partnering with business owners and managers to find lasting solutions to their people needs with an emphasis on commerciality, empathy, and performance.