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7 Things To Consider Following an Employee Resignation

employee resignation impact on SMEs

employee resignation impact on SMEs






An employee resignation takes place when an employee puts in writing their wish to resign from your company. In order to complete the process, the employer should reply the employee resignation letter by sending confirmation which includes last day of service, confirmation of any outstanding leave Once these steps have taken place, the employee resignation is in place.

An employee resignation can have quite a big impact on the company. The consequences of employee resignation could include:

  • Loss of customers who are used to working with that particular employee
  • Loss of business critical information.
  • Drop in productivity if it takes a while to replace the person leaving
  • Loss of knowledge and experience

Whilst it is not always possible to prevent resignations in the workplace, it is possible to seek ways of minimising the effect on your business. Here are some of the steps a company should take following an employee resignation.


Employee resignation checklist

Having an employee resignation checklist with all the key information that you require before the employee leaves your employment is a good place to start. It will help minimise the impact on your company following an employee resignation.

A typical employee resignation checklist should contain certain information such as:

  1. Making sure handover notes have been drafted
  2. Details of where the person who is resigning is going to
  3. Confirmation of their home address and contact details, in the event that you need to get in touch with them once they have left
  4. Confirmation that they have handed over all work equipment such as laptops, mobile phones, keys
  5. A reminder to change password access to sensitive information held on company computers or customer databases. This is of particular importance if the employee has resigned from the company under less that happy circumstances
  6. Making sure arrangements are in place to reclaim any loan payments such as season ticket loans
  7. Have arrangements for informing customers and other employees about the persons departure. It is also helpful to inform customers who their new contact will be. A lot of companies often forget to do  so, which can lead to disengagement of customers who phone up to speak with the employee only to find that they have left

In addition to the above, there are also legal obligations in relation to payroll and notice periods which must be adhered to.

You can view our Sample Employee Resignation Checklist which will help make sure you ask all the right questions and are able to recover quickly from an employee resigning.

If you have decided to replace the person leaving it is best to start work on the advertisement before they leave. You may also find it helpful to carry out an exit in interview with the employee  who has resigned as it may provide you with valuable information which can help you get a better understanding of what  might attract someone to the job.

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