Offboarding refers to the process of separating an employee from a company. It is an important process for both the employer and the employee. For employers, offboarding helps to maintain a positive relationship with the departing employee, protect the company’s assets, and prepare for the future.
For employees, it is a time to reflect on their experience, receive feedback, and plan for their next career move.
In this article, we will look at offboarding statistics that shed light on the importance and impact of offboarding.
Key Offboarding Statistics 2023 – MY Choice
- 71% of organizations have no formal offboarding process.
- 20% of businesses have experienced data breaches connected to former employees.
- 32% of organizations have a partially automated offboarding process, while only 5% have a fully automated process.
- 76% of IT leaders strongly agree that offboarding is a significant security threat.
- 70.9% of exit interviews are conducted by HR.
- 70% of company IP theft occurs 90 days before employee resignation.
- 60% of data breaches are caused by insider threats.
- 50% of former employee accounts remain active for longer than one day after departure.
- 89% of former employees still have access to private business apps and data.
Table 1: General Offboarding Statistics
|Organizations with no formal offboarding process||71%|
|Annual employee turnover rate in the US||18%|
|Organizations with a formal onboarding process||58%|
|Organizations with a formal offboarding process||29%|
|Employees who have boomeranged back to a former employer||15%|
|Employees who would consider boomeranging back to a former employer||40%|
|Average employee work duration in the US||4.1 years decrease|
Table 2: Offboarding and Security Statistics
|Former employees with access to private business apps and data||89%|
|Former employee accounts remaining active for longer than one day after departure||50%|
|Former employee accounts remaining active for a week or longer after departure||25%|
|Data breaches caused by insider threats||60%|
|Company IP theft occurring 90 days before employee resignation||70%|
Table 3: Exit Interview Statistics
|Exit interviews conducted by HR||70.9%|
|Exit interviews conducted by direct supervisors||19%|
|Exit interviews conducted by direct supervisor’s manager||8.9%|
|Exit interviews conducted by external consultants||1%|
|Exit interview participation rate||30-35%|
|In-person exit interview participation rate||15%|
|Employees who believe their exit feedback is important||93%|
- According to a survey conducted by the Work Institute, 25% of employees who quit their jobs reported that they did not receive any form of offboarding.
- The same survey found that companies with a high retention rate have a more structured offboarding process in place.
- The offboarding process typically includes conducting an exit interview, collecting company property, revoking system access, and providing severance pay if applicable.
- A well-structured offboarding process can help prevent data breaches and protect company assets.
- 87% of HR professionals believe that offboarding is just as important as onboarding.
Benefits of Offboarding Stats
- Offboarding can help to maintain a positive relationship between the employer and the departing employee. This is important as the employee may become a customer or even a potential employee in the future.
- A structured offboarding process can help to identify areas for improvement within the company and lead to increased retention rates.
- According to a survey conducted by the Work Institute, 23% of employees who quit their jobs would have stayed if they had received more support from their employer during offboarding.
- Offboarding can help to preserve the knowledge and skills of the departing employee, which can be shared with the remaining employees.
- A positive offboarding experience can lead to positive word-of-mouth advertising for the company.
Impact of Poor Offboarding Stats
- Poor offboarding can lead to negative online reviews and decreased customer loyalty.
- A poorly executed offboarding process can result in negative feedback from the departing employee, which can spread to their network and damage the company’s reputation.
- According to the Work Institute, 33% of employees who quit their jobs would not recommend their previous employer to others.
- Poor offboarding can lead to legal issues, such as wrongful termination claims or discrimination lawsuits.
- The cost of poor offboarding can be significant, as it can lead to decreased productivity, increased turnover, and decreased morale among remaining employees.
Technology and Offboarding Stats
- Technology can play a significant role in the offboarding process. HR software can automate the process, allowing for a more consistent and efficient experience for both the employer and the employee.
- Automated offboarding processes can help to ensure that all necessary tasks are completed, such as revoking system access and collecting company property.
- According to a survey conducted by Namely, 60% of HR professionals use HR software to manage the offboarding process.
- Technology can help to facilitate the transfer of knowledge and skills from the departing employee to the remaining employees.
- Technology can also help to provide a more personalized offboarding experience for the departing employee, such as customized feedback or personalized job search resources.
Offboarding and Remote Work
- With the rise of remote work, offboarding has become more challenging. Remote employees may have company property that needs to be collected, or access to systems that need to be revoked.
- A structured offboarding process is especially important for remote employees, as they may not have the opportunity for face-to-face interaction during the process.
Types of Offboarding Processes
There are several types of offboarding processes that companies can implement, depending on the circumstances surrounding the employee’s departure. These include:
This is when an employee voluntarily resigns from their position. In this case, the offboarding process can be straightforward, as the employee has provided ample notice and is typically willing to participate in the process.
Involuntary offboarding occurs when the employer terminates the employee’s contract due to reasons such as poor performance, company restructuring, or unethical behavior. This type of offboarding can be challenging, as the employee may be caught off guard and may not be willing to participate in the process.
When an employee retires, the offboarding process can vary depending on the individual’s level of seniority and the company’s policies regarding retirement. Some companies have a set retirement age, while others allow employees to retire whenever they choose.
Redundancy offboarding occurs when an employee’s job is eliminated due to restructuring or downsizing. This type of offboarding can be difficult for both the employee and the employer, as the employee may feel that they have been unfairly let go, and the employer may be concerned about potential legal challenges.
Impact of Poor Offboarding Practices
Poor offboarding practices can have a negative impact on both the employee and the organization. Some of the most significant effects include:
Decreased Employee Morale
If employees witness their colleagues receiving a poor offboarding experience, it can negatively impact their morale and job satisfaction. They may begin to feel that they are not valued by the organization and may start looking for employment elsewhere.
Damage to the Company’s Reputation
If an organization is known for treating departing employees poorly, it can damage its reputation and make it less attractive to potential candidates. Negative reviews on social media and job sites can also deter job seekers from applying to the company.
Increased Risk of Litigation
If an employee feels that they have been treated unfairly during the offboarding process, they may file a lawsuit against the company. This can be costly in terms of time and money and can damage the company’s reputation.
Best Practices for Offboarding stats
To avoid the negative consequences of poor offboarding practices, companies should implement best practices that prioritize the employee’s well-being and ensure a smooth transition. Some best practices include:
Develop a Clear Offboarding Policy
A clear offboarding policy can ensure that all departing employees receive the same treatment, regardless of the reason for their departure. The policy should include details on the process, timelines, and responsibilities of all parties involved.
Conduct Exit Interviews
Exit interviews can provide valuable feedback to the organization on the employee’s experience during their time with the company. This feedback can be used to improve the organization’s practices and prevent similar issues from arising in the future.
Provide Support for the Departing Employee
Offering support to departing employees can help them feel valued and respected by the organization. This support can include assistance with job searching, career coaching, or access to mental health resources.
Communicate Clearly and Transparently
Clear and transparent communication throughout the offboarding process can help to reduce uncertainty and anxiety for the employee. This communication should include regular updates on the process and the reason for the employee’s departure.
Conclusion: Offboarding is an important process that can have a significant impact on the employee and the organization. Companies that prioritize the employee’s well-being and implement best practices during the offboarding process can avoid the negative consequences of poor off