Friday, September 27, 2024

Key Causes of Explosive Employee Exits

A Panel Discussion in Charlottesville

An an unexpectedly stormy afternoon in Charlottesville, VACEO members, sponsors, and guests gathered for a panel discussion about Explosive Exits. We had a great conversation about the topic with lots of input from a very engaged audience. A handful of them shared examples of some very explosive exits…, so the topic was clearly one that needed discussing.

The panel consisted of Karen Elliott, Rob Jones, and myself, Clay Eure. We were led by John Woodell who graciously agreed to wrangle our panel of experts. He led us through a discussion around three main areas of explosive employee exits: Causes, Impacts, and Mitigation.

Accountability and Communication

In discussing the most common causes of explosive exits, it became clear that it often comes back to a lack of accountability within the relationship. If managers are not direct and clear with their employees about how they are performing against the standards expected, employees will be surprised by any disciplinary action. And as Karen mentioned, that is when employees are more likely to become litigious because they feel that the process wasn’t fair. Being upfront and honest about employee performance can go a long way towards avoiding explosive exits. It’s true what they say, an ounce of prevention is worth a pound of cure!

The Impact of Explosive Exits on Workflow and Morale

When thinking about impacts, the most obvious one is the impact on the work itself. Whether that employee was a superstar or a slacker, someone else is going to have to pick up the work they left behind. We make sure that each of our clients document every role at their company and that everyone has a clear understanding of who is doing what. That way there is as little disruption to workflow as possible when someone leaves. It’s also important to note that there will be an impact on morale. Sometimes that’s positive and sometimes it’s negative. If it was a real jerk that left, chances are people will be cheering their departure (even if you thought your company would never survive without them…). If it was someone who was more well-liked, you’ll need to take time to help people process the change. Give everyone a chance to talk about the impact on them so that they can voice their feelings in a constructive way.

Mitigating the Effects of Explosive Exits: Strategies for Success

And finally, what to do about mitigating the impact of these explosive exits. Rob wanted to ensure that everyone has a plan for how to handle the messaging of an employee departure. Both internally and externally. Companies should know what is and, perhaps more importantly, what is not going to be shared. And as much as possible, they should remove access to all official company communication and social media channels. Another great way to mitigate the impacts of an explosive exit is to have succession planning in place. This helps ensure that there is always someone ready to step into a role.

Essential Takeaways: Managing People and Planning for Exits

If you’re more into bullet points, I’ve highlighted some key take aways from the discussion here:

  • Understanding and managing people is crucial for sustainable business growth.
  • By the time a performance improvement plan is implemented, the relationship between the manager and the employee is often beyond repair.
  • Allowing one person to hold too much control over client relationships can be risky for the organization.
  • The perception of fairness in HR processes is crucial to avoid legal issues and maintain employee trust.
  • The legal landscape for non-compete agreements is uncertain, and companies need to be prepared for rapid changes.
  • Proper documentation and a clear process can help in defending against wrongful termination claims.

But the most important thing to remember when thinking about explosive exits is that if you treat people well, they’ll treat you well. A lot of heartache can be avoided if you treat your employees like human beings. Build relationships with them, get to know them as individuals, and show them that you truly care. I’ll leave you with a quote that Karen shared:

“People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

– Maya Angelou

Clay Eure is a director, coach, and facilitator at Eure Consulting dedicated to client success and has been involved with the VACEOs community since 2020. Eure Consulting is a sponsor of VACEOs and co-hosted this Hot Topic Discussion Panel.

Posted by Aida Pehlic at 1:40 pm

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