The Hidden Cost of Mishandling Employee Exits
Most founders and CEOs focus on hiring the right people—but what about when employees leave?
How you handle departures—voluntary or involuntary—can have lasting effects on your business, culture, and reputation. I recently advised a client who wanted to cut short an employee’s notice period after they resigned. While it seemed like a simple decision, the long-term impact was anything but.
Here’s why exit strategy matters as much as hiring strategy:
✔ Reputation Travels Fast – Former employees are future brand ambassadors—or critics. How they leave impacts what they say about your company.
✔ Your Team is Watching – If resignations are met with abrupt terminations, employees will think twice about offering notice in the future. That leads to unexpected disruptions and lost knowledge transfer.
✔ Boomerang Employees are Real – Employees who leave on good terms are more likely to return in the future with new skills, experiences, and perspectives. Mishandling exits closes that door.
✔ Compliance & Cost Risks – Depending on how you handle exits, you could be opening your business up to unnecessary legal and financial risks, from unemployment claims to wage and compliance issues.
✔ The Ripple Effect – How we treat people—whether they stay or go—impacts not just business, but our communities and the larger professional ecosystem. Respectful offboarding fosters stronger networks, healthier workplaces, and long-term success for all.
The best leaders don’t just hire well—they offboard well, too. Because every departure is an opportunity to protect your company’s reputation and culture, keep future talent pipelines open, and strengthen your business.
🚀 When we treat people well, we create stronger businesses, better communities, and a more connected world. Need guidance on structuring people decisions that drive growth, not risk? Let’s talk.
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