Whilst most hospitality businesses with different levels of success know what onboarding is, there are still many that don’t know what off-boarding is and for that reason don’t have a proper program.
So, let’s start with the following question: what is off-boarding?
Off-boarding, or the process of managing an employee's departure from a company, is a critical component of the employee life cycle.
Unfortunately, many hospitality businesses don't give it the attention it deserves, and the results can be disastrous. In this article, we'll explore the importance of proper off-boarding and the risks to the business if it's not done correctly.
How important is off-boarding, and what are the potential risks if it isn't done?
Proper off-boarding is essential for several reasons, and each has an associated risk to your business if the process is not in place.
Off-boarding is an opportunity to get valuable feedback and show that employees are valued.When an employee leaves, it can impact the morale of the remaining team members. A good off-boarding process can help to maintain a positive company culture by demonstrating that the company values its employees and that departures are handled with respect and professionalism. It also gives the departing employee a chance to speak up about both the positive parts of their experience and to suggest potential areas of improvement. We ask for this feedback from our guests, so why not from the people who are part of our business?
Risk: Reputation damage. If a departing employee feels that they were mistreated during the off-boarding process, they may speak negatively about the company to others. This can damage the company's reputation and make it more difficult to attract and retain top talent.
Proper off-boarding ensures knowledge transfer.
Departing employees often have valuable knowledge and expertise that can benefit the company. Off-boarding provides an opportunity to capture that knowledge and ensure that it is shared with other team members before the employee leaves.
Risk: Operational delays and breakdowns. If departing employees are not given the opportunity to share their knowledge with other team members, the company may lose valuable expertise that is difficult to replace, which can lead to extra pressure on the team.
Protection of company assets and data.
When an employee leaves, it's critical to ensure that they return all company property, including laptops, phones, keys and other equipment. A good off-boarding procedure will include a checklist to make sure nothing is missed.
Risk: Cost and security concerns. When employees leave and don't return their laptop, phone, etc. it can lead to a significant expense for the company. If they retain access to company systems and data it can also pose a significant security risk. Departing employees may use this access to steal sensitive information or cause damage to the company's systems.
Proper off-boarding is essential for legal compliance.
When an employee leaves, there are often legal requirements related to their departure that must be followed. This may include providing required notices, ensuring compliance with employment laws and avoiding potential legal disputes.
Risk: Legal problems. If the company fails to comply with legal requirements related to off-boarding, it may face legal problems, including lawsuits and fines.
In summary, hospitality businesses should prioritize off-boarding as an essential part of the employee life cycle and ensure that it is done correctly every time an employee leaves the company. Proper off-boarding is critical for the company's culture and to attract new talent as well as for protecting the company's assets, capturing valuable knowledge and ensuring legal compliance.
This process is even more essential today, as retaining and finding talent in hospitality has never been so hard - and for employees, finding places to let the world know if they are dissatisfied has never been so easy. Just as you never want a guest to leave unhappy, it is better to hear all feedback from your team - positive or negative - before they depart, and most will appreciate being heard. It is worth taking a moment to recognise the time and effort someone invested in the company, as there is truly no better advertising than a happy ex-employee who can promote and sell your hospitality business from the heart to potential guests and future talent.