Enhancing the Employee Exit Experience Is Worth It

Turnover risk across the U.S. workforce is at its highest since 2015. Fifty-one percent of employees are currently watching for or actively seeking a new job.

Employers and managers can take steps to mitigate some voluntary turnover. While exiting employees say 42% of voluntary turnover is preventable, the rest may be inevitable.

In these situations, a manager’s focus must shift from turnover prevention to creating a positive exit experience. A positive exit experience improves the organization’s reputation as an employer and builds a strong network of former employees. This helps attract future talent and strengthens team culture.

However, according to CHROs, this part of the employee experience is a weak point for most organizations. A Gallup survey of 150 CHROs of Fortune 500 companies in the fourth quarter of 2023 found that only 10% say their company is highly effective at the “employee departure” stage of the employee experience. This is far worse than they rated the other seven elements of the employee experience, ranging from recruitment to departure.

Given leaders’ perceived lack of effectiveness in managing employee departures, Gallup conducted a nationally representative study of 716 individuals who voluntarily left an employer in the past 12 months and asked them to share their exit experience.

The findings show that positive exit experiences are important for driving key organizational outcomes. They also highlight how managers’ reactions to exit decisions influence these outcomes.

The Importance of a Positive Exit Experience

Organizations currently struggle to create a satisfying exit experience. Less than half of voluntary leavers report satisfaction with how their organization handled the exit process: Only 22% were extremely satisfied and 21% were satisfied.

Responses were mixed when voluntary leavers were asked an open-ended question about how their manager treated them during the exit experience. About one in four respondents (24%) reported being treated professionally with respect and understanding, and 17% reported that they were treated with active support or encouragement. In contrast, another one in four (24%) encountered rudeness, hostility or a generally negative reaction, and 10% were met with indifference or a lack of acknowledgment. Only 7% felt their manager made an effort to retain them, despite the high cost of turnover for organizations.

According to respondents, positive or negative reactions from managers can influence satisfaction with the exit process:

Positive exit experience:

“My manager partnered with me to figure out a timeline for my departure. She helped me think about what would be the best decision for me. She treated me with respect and genuine care for my wellbeing.”

Negative exit experience:

“They were not bothered at all and forgot it was my last day. They did not congratulate me or wish me well.”

The Importance of a Positive Experience

Why should organizations care about creating positive exit experiences if these employees will no longer work there?

Gallup research indicates that there are at least three important reasons:

Positive exit experiences can create brand ambassadors and a strong network of former employees. When leavers are extremely satisfied with how their former organization handled their exit process, they are 43% more likely to strongly agree that they would recommend their previous organization as a great place to work. A negative review online or by word of mouth can hurt an organization’s ability to attract talent in the future. However, a positive review can drive talent and business opportunities to the organization.

Positive exit experiences encourage “boomerang” employees. When employees leave an organization, they are more likely to return to their former employer in the future if their exit experience was positive. Only 4% of those who were not extremely satisfied with how their organization handled the exit process said that they would be extremely likely to accept a future job offer from the organization. But this number increased to 24% when respondents were extremely satisfied with how their organization handled their exit experience.

Positive exit experiences can rally your team. Exit experiences either create concern or strengthen trust that people will be treated fairly at critical moments during their careers. Showing respect and honoring people when they depart demonstrates authenticity and builds team culture. It can also provide developmental opportunities for other team members to take on new responsibilities and partnerships.

Three Ways to Enhance the Exit Experience

Managers’ behavior and reactions when employees share their intention to leave can shape how employees feel about how the organization as a whole handled the exit process. The findings suggest that managers can take steps to ensure the best exit experience possible, which can lead to beneficial outcomes for the organization.

1. Show support and avoid negativity.

Many managers could improve their response when their employees announce they are exiting the organization. Gallup asked voluntary leavers how their manager treated them when they were leaving their company. Only 17% reported their manager reacted with active support and encouragement, while 24% reported their manager reacted with rudeness, hostility or general negativity.

Clearly, managers’ reactions affect satisfaction with the exit experience. When managers express support, their employees are 6.2 times as likely to be somewhat or extremely satisfied with the exit process than when they are met with negativity from their manager.

2. Inspire pride in their contributions.

Less than half of voluntary leavers (40%) strongly agree that they are proud of their work at their former organization, but former employees who express pride are more likely to say they had a positive exit experience. Organizations can inspire pride through messages from managers, messages from broader teams or a reception celebrating the exiting employee’s accomplishments.

3. Develop a network of brand ambassadors.

Exiting talent may want to return to their former organization later or refer a colleague. Organizations should welcome this possibility if the exiting employee has been a valuable contributor.

Organizations can encourage employees to “boomerang” back to them or refer others by:

• creating a positive exit experience from the start
• having purposeful check-in meetings with former employees who voluntarily left on good terms
• recommending former employees for new employment or referral opportunities as they arise