Breaking Up – It’s Hard to Do / That’s Why Employers Need an Effective Offboarding Strategy

Posted on March 20, 2025

Raise your hand with me if you’ve ever heard or said any of these (or similar) words when a relationship you were in was ending: “It’s not you, it’s me,” or “I think we need a break.” What emotions did you experience after those words were said? Sadness, fear, anger, relief? All the above? Breaking up is hard to do, no matter the cause or who initiated the breakup. Taking responsibility for making sure it’s done with dignity is not often a priority.

But what happens when an employee or their employer says, “We just don’t fit anymore.” All the same (and related) emotions come up. The difference is that when employment relationships end, employers are responsible for ensuring that the relationship ends with dignity. It doesn’t matter who initiates the breakup. For these reasons, having an offboarding strategy is essential.

According to LinkedIn (Pulse, August 2024), companies who lack an offboarding strategy experience significant direct and indirect costs. Direct costs – severance, accrued paid time off, recruitment and retraining costs, etc. – are easier to recognize and plan for. Indirect costs – reputational risks, decreased productivity, client risks, etc. – are emotional and hurt a company’s ability to move forward as smoothly as possible and their bottom line. An effective offboarding strategy minimizes indirect costs.

The key elements of a strong offboarding strategy include:

1. An off-boarding program – A program is inclusive of traditional human resources processes, and it includes other elements that can help an employee move forward with dignity. Companies invest time and money in developing and implementing onboarding programs. Comprehensive off-boarding programs are also worth the investment.

2. A transition plan framework –A framework has fundamental components that are easily adaptable for most separation situations. While the reasons behind separations vary, having a guide in place is valuable in minimizing the impact of separations on the remaining employees and external parties.

3. A communication plan outline – This element involves establishing communication protocols when an employee leaves.  An outline includes guidance for internal and external communications.  An effective outline is user-friendly and adaptable.

Does your company have an effective offboarding strategy?  What elements would you add to this list?

Does your organization need help creating an effective offboarding strategy?  Contact us to learn how AW Squared Advisors, LLC can help.

©AW Squared Advisors, LLC, 2025

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