Management & Diversity

Offboarding: why it matters? How to set it up in your business?

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It is hardly a secret that companies and teams flourish when HR policy is properly streamlined at every stage of the employee life-cycle. But for many years, companies have devoted more attention to certain stages of this lifecycle, while neglecting others.

Indeed, over time, onboarding claimed its place as the unofficial holy grail of HR departments around the world. Yet, for a number of reasons, offboarding has long gone under the radar. A quick Google search today will produce around 2,5 million search results for “offboarding”, while “onboarding” leads to ten times that amount. Still, offboarding has recently started claiming its rightful place as a key component of the talent
management process.

In a competitive labour market that is increasingly “disrupted” by higher employee turnover rates, as well as a more widespread increase in the amount of freelance workers, offboarding is becoming a more frequent ritual that every employee (and employer) has to go through. What’s more, employers are realizing that a smooth offboarding process can have long-lasting benefits for their company.

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The main reason anyone talks about the importance of offboarding has always been employee turnover. Indeed, replacing a single employee can equal more than twice that employee’s salary.

Companies are waking up to the realization that a good process for transitioning employees out of the workplace can strengthen their company’s brand.

Companies and HR professionals have borne witness to this trend; over the past five years, 85 percent of HR professionals indicate having received job applications from former employees. A whopping 50% of them were hired.

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