Best Steps For An Employer When An Employee Quits

Last Updated on April 28, 2022 by G. T. HR

Job turnover is at a high rate. According to the Labor Department’s latest Job Openings and Labor Turnover report. Turnover reached a new high as 4.5 million workers quit their jobs this past November. Economists are predicting this rapid quitting to continue.

HR experts say “do this…” when an employee quits.

Employees are leaving for many reasons, so what do we need to do as an employer, in a situation when your employee gives notice? Though this can sometimes feel like a personal moment, it is important not to get emotional. There are certain steps your organization should consider following when faced with a sudden employee departure.

1. Assess the Whole Situation

You might be surprised initially at the employee’s sudden resignation. Your reaction might even be to panic. You might even take the resignation personally.

While these types of feelings are perfectly natural, keep them to yourself. The best thing you can do is to take a deep breath and consider the long game. How you conduct yourself at this time will say a lot about what kind of leader you are.

2. Ask Them Why They’re Leaving

As a manager, there’s no harm in asking, “Is there anything we can do to convince you to stay?” It might be that the employee wants a raise or another role in the organization. And while you may not always be able to accommodate their request, you’ve taken the time to hear them out. This can work to your advantage in the future and protect your company brand and reputation.

3. Check the Notice Policy in Your Handbook

After getting a resignation notice, it is advised that an employer first should consider whether it has a notice policy and if the employee has an employment contract.

Regardless of why the employee is leaving, it’s important that you comply with all state and federal employment laws. You should always consider consulting with a human resource professional to ensure you follow the laws and regulations for your industry and location, which may include:

  • Making sure their final paycheck includes all accrued wages, commissions, and bonus payments required by contract or law.
  • Making sure their final paycheck is paid in a timeframe consistent with federal, state and local law.
  • Paying out any payable accrued benefits.
  • Providing all required legal notices, which may include unemployment, workers’ compensation, and COBRA benefit continuation information.
  • Reviewing and reiterating the terms of any employment, non-compete, and confidentiality agreements that the employee signed during their employment.

Whether or not the employer chooses to allow the employee to work the notice period is normally an issue of what work needs to be completed to transition the employee out of the organization.

 4. Be Smart About the Process of Replacement

They quit. Now what?

If you decide that your business would benefit from replacing this employee, make sure your next hire is someone who is a good fit, both from a skills and a company culture standpoint. Consider shifting parts of the departing employee’s workload to independent talent on a temporary basis while you conduct a thorough search for a new hire.

We understand that an employee who leaves suddenly can disrupt operations, but you can use that disruption as an opportunity to reevaluate your goals, your company culture, and where to focus your team-building efforts.

While many businesses have tried to retain as much of their original staff as possible, they will likely still face turnover. SMBs will face a challenge as they fight for new talent.  It is important that hiring practices are done with quality in mind, in an effort to reduce turnover and increase business success.

5. When Re-Hiring, Use Smart Hiring to be Cost-Effective, in the Short and Long Term

In the short term, smart hiring starts with how you promote or advertise your job posting. There are multiple ways to do this, however, the thing that is most important is the ease in which an applicant can apply and how the process is managed.

It is important to ask yourself if you make this a user-friendly process, or whether this is a cumbersome one. Most applicants are seeking a job out of need and moving quickly. Mobile phone apps and text options, make the application process good for the applicant but also a smart first step for the employer. With a smart Applicant Tracking System (ATS) such as MyHire by MyHRConcierge, you can save money on advertising and utilize a code for applicants to apply by text. This can speed up the process and be much more effective and will move a bit faster than old-school methods. This will save you money on the front end in advertising as well as time and paperwork.

6. Don’t Skip Employee Screening

Job descriptions, interviewing, and screening processes come together to play a major part in finding a quality employee(s). Using a thorough background check company can ensure that you get what you see, and provide you with a system that is user-friendly and offers a broad search for background checks. A service that offers ongoing monitoring, can make a big difference in your outcome, as well.

7. Stay Informed on Labor Challenges and Trends

The increase in quits indicates that the demand for workers remains high, and employers continue to face challenges retaining employees at the start of the year.

We know that many workers are leaving their jobs for advantages that include: improved compensation, benefits, or workplace flexibility, such as positions that allow remote work. Additionally, safety concerns have remained for many workers amid the ongoing COVID-19 pandemic. While COVID-19 cases trended down in February, the coronavirus Omicron variant and its subvariant BA.2 continue to persist.

These labor challenges are largely expected to continue into 2022 in today’s worker-friendly employment market. Employers should continue to monitor employment trends to stay informed on the ever-changing labor market.

Get HR Consultation Help from MyHRConcierge

MyHRConcierge can help you with any human resources issue, including how to deal with turnover and other staffing challenges. To learn more, contact Chris Cooley at or call him at  1-855-538-6947 x.108.