What is offboarding? And why it matters

Offboarding describes the process of separating an employee from their position within a company—a common occurrence, with the U.S. Bureau of Labor Statistics reporting over 5.1 million separations in October 2023 alone. Where onboarding involves training and familiarizing an employee with their new role and workplace, offboarding entails the handover of work product and equipment.

This article explains what offboarding involves, why it matters for your business, and how to create a smooth transition that protects your organization while respecting departing employees.

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Why offboarding matters

Offboarding matters because it protects your business from security risks, preserves institutional knowledge, and maintains positive relationships with departing employees. Without a structured process, companies risk data breaches, lost productivity, and damaged reputation when employees leave, with experts estimating the cost of a lost employee can be as high as 1.5 to 2.0 times their annual salary.

A well-planned offboarding process turns departures into opportunities for feedback and future rehiring, as employees with a positive exit experience are 2.9 times more likely to recommend their former organization to others.

Offboarding vs onboarding

While they sound similar, onboarding and offboarding are two sides of the same coin—the employee lifecycle. Think of it this way: onboarding is the welcome, and offboarding is the farewell.

Onboarding focuses on integrating a new hire into the company. The goal is to get them up to speed, connected with their team, and productive in their role. It's about setting them up for success from day one.

Offboarding, on the other hand, manages an employee's departure. It ensures a smooth and secure transition, protects company assets and knowledge, and aims to leave a positive final impression. A great offboarding process makes a departing employee feel valued, even as they leave—an area where many companies can improve, as research shows less than half of employees are satisfied with their exit process.

What is involved in a typical offboarding process?

So what actually happens when someone leaves? The offboarding process typically unfolds in several key phases, each designed to protect your business while respecting the departing employee.

So what actually happens during offboarding? Here are the key steps most companies follow:

• Written resignation confirmation: While employees often resign verbally, a written confirmation helps document the timeline and details.

• HR exit interview: A structured conversation to gather feedback and address final questions about benefits, equipment, and pay.

• Knowledge transfer documentation: The departing employee creates detailed handover notes covering ongoing projects, vendor contacts, and daily processes.

Training and duty handover: While the company searches for an employee's replacement, it is often necessary for them to train colleagues on how to perform the more specialized aspects of their role.

Equipment handover/IT offboarding: An exiting employee will need to make arrangements for how company-owned equipment will be wiped and returned. Oftentimes, an IT manager will coordinate with the employee on how best to facilitate this. This is a crucial step toward ensuring an employee does not have access to company data and information after they have moved on.

Offboarding best practices and checklist

A thoughtful offboarding process protects your business and treats departing employees with respect. Here are a few best practices to guide you, along with a simple checklist framework.

Key Best Practices:

• Get ahead of the communication: Once someone's leaving, tell the right people quickly and set clear expectations. This prevents rumors and reduces stress for everyone involved.

• Make knowledge transfer real: Don't just ask for notes—schedule actual walkthrough sessions where departing employees can teach colleagues their processes.

• Turn exit interviews into learning opportunities: Ask genuine questions about their experience and really listen. Their insights can help you improve for future hires, especially since so many employees use referrals to learn about job opportunities, and a positive offboarding experience can encourage former employees to provide them.

• End on a high note: A thank you message, team lunch, or LinkedIn recommendation shows you value their contribution, even as they leave.

A Simple Offboarding Checklist:

• Paperwork: Confirm the final day, send official acknowledgment, and prepare final pay and benefits documents.

• Communication: Create an internal and external communication plan.

• Knowledge Transfer: Schedule handover meetings and confirm documentation is complete.

• IT & Asset Recovery: Plan for the return of all company property (laptop, phone, keys) and revoke system access on the final day.

How long does offboarding take?

Offboarding time may vary depending on the company and role. The employee's notice period will also factor in.

For example, if their notice period is two weeks, they will likely spend a great deal of that time performing offboarding tasks. However, if an employee's notice period is three months, they may only spend the final month on offboarding tasks and meetings.

Simplify global offboarding with Oyster

A smooth offboarding process is a critical final step in the employee journey, but managing it across different countries adds layers of complexity. From complying with local labor laws to coordinating equipment returns across borders, a consistent global process can feel out of reach.

Oyster's global employment platform simplifies every stage of the employment lifecycle, from hiring to offboarding. We help you manage compliant departures for your global team, ensuring a professional and positive experience for everyone, no matter where they are. Ready to see how it works? Start hiring globally and manage your team from a single, intuitive platform.

FAQ

Is offboarding the same as termination?

No, offboarding is the broader process for any employee departure, while termination specifically refers to involuntary dismissal. Offboarding applies to all departures—voluntary resignations and involuntary terminations alike.

What is another word for offboarding?

You might also hear it called employee separation, exit management, or departure process—they all mean the same thing.

How long should an offboarding process take?

It typically matches the employee's notice period—two weeks for standard departures, with longer notice periods focusing the final weeks on handover tasks.