When terminating an employee, employers consider the legal obligations, costs, and replacement requirements. An often overlooked aspect is the termination experience. By this I mean the tact, respect and care used when terminating an employee. Paying attention to terminate an employee with tact and respect is not just soft and fluffy HR talk, it can provide real benefits (or at the very least prevent some very real costs). Terminating an employee without respect and dignity can cost a company greatly in theft, poor morale from negative talk around the water cooler, poor work transition, and so on.
Consumer research has shown that an upset customer will tell seven friends on average about their bad experience. Upset ex-employees behave no differently. In today’s labour market where employers are all moaning about the shortage of qualified employees, employer branding matters. Current and former employees that speak highly of their work experience, is the best form of recruitment and employer branding. In fact, studies like Hewitt’s Best Employers reaffirm companies with high employee engagement enjoy benefits and outperform their competitors in hard metrics such as revenue and profits. And these engaged employees refer other talented job seekers to work for the company they do.
So often employers only focus on the legal obligation, or costs associated with terminating an employee and neglect the employee experience. By doing so they fail to recognize the opportunity in front of them and hurt the employer brand.
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