Although we all like to think that we are great employers to work for, that our workforce is a close-knit team and that our employees would be crazy to go elsewhere, the reality is that workers are now more transient than ever before, and it is likely that some of your employees will leave you at some time.
While many employee retention strategies work with varying success, extra responsibility, more cash or a fun working environment can only keep an employee engaged for as long as they wish to be there. There are various reasons for employees choosing to make that break, many of which that you as an employer, can do little about.
It doubly hurts when the departing employee is someone integral to your business, your start performer, so it is vitally important that you prepare in advance for the day when they hand in their notice and head off for pastures new.
I offer these three tips to assist with such situations.
Manage the damage through the employment contract
There is some very basic stuff with employment contracts that so often gets overlooked which can immeasurably assist in this area. Getting the employment contract right in advance of the dreaded day will always help.
A basic employment contract will contain the terms and conditions upon which someone is employed however a good employment contract will look beyond the minimum employment terms contained within the Fair Work Act 2009 and will include measures that protect the employer in such situations. These can include requirements for longer periods of notice, the protection of confidential information and post-termination non-compete covenants.
A longer period of notice in the employment contract will enable you to better manage the situation when a key employee resigns by providing you with more time to organise before they go. The employment contract can also include a ‘garden leave’ provision enabling you to keep the employee away from the office, colleagues and clients during the notice period. Send them home to mow the lawn while you tighten up your relationships with your customers.
A clause dealing with confidential information belonging to the business will assist to identify what the resigning employee can use in their new employment and importantly, what they cannot. While there are implied terms generally on this issue in all contracts, it is far better to have this addressed conclusively in advance as a term within a signed binding contract.
Restrictive covenants can be included in a contract to prevent the poaching of customers, clients, suppliers and colleagues when the employee leaves. If correctly drafted and providing these clauses go no further than what is considered reasonable in the circumstances, they will be enforceable. Similar provisions to prevent employees from working in competition with a business also stand up at court.
By including these types of clauses, not only do you protect your business in the event of a key employee leaving but also deter other employers from potentially poaching your employees. How attractive is it for a competitor to recruit your head of sale when they are prevented from operating in that market for 12 months?
Have a succession plan
If you accept my premise that employees will at some stage leave, then there is no excuse for not preparing for this eventuality in advance of that day. It is relatively easy to do.
Experienced HR practitioners will tell you that every employer should have accurate and thorough job descriptions for all its employees. These are essential for accurate performance reviews, salary discussions and career progression. If you have such a document, then you are already well equipped to deal with a resignation. The job description of the departing employee will identify the skills that your business is losing. With this information, you can consider whether those skills can be replaced from elsewhere within the company or if an external hire is required.
In larger organisations, it may well be the case that such planning is done in advance of a resignation. If this is the approach within your organisation then ensure that the internal understudy is ready to step up by identifying the additional support they will require. If they work closely with the departing employee, obviously ensure that they too are not departing for a new role elsewhere. It often happens.
Be gracious in defeat
While there may be the possibility of dissuading the employee from leaving, if that isn’t achievable then be respectful of their decision to go. Inevitably, there will be work that you require them to complete, and the earlier this can be achieved without damage to client or customer relationships, and team morale, the better.
Certainly, do not look to burn any bridges with the departing employee. As we know there are many twists and turns in business, and you would be surprised at how many times during my career to date I have seen former colleagues reunited, sometimes with their leadership roles reversed. You do really not want to be the manager who berated a junior for leaving only to find that a few years further down the line they are now your boss.
Even if it feels like a betrayal that they are going, simply turn the other cheek and think nice thoughts. Wish them well and accept their decision. These situations can have a habit of biting if you react badly.