MBA1309 Your Procedure When Someone Leaves Your Company

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Welcome to the $100 MBA show where your business gets better by the minute every day with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of the Hundred Dollar mba, a complete business training and community online. And in today's episode, you will learn how to create a procedure when somebody leaves your company. Whether an employee resigns, moves on to another opportunity, is unfortunately laid off or even fired. You need a protocol or procedure that you can go to that you can rely on when this happens. There are logistics as well as cultural important tasks that you need to do in your business. You need to make sure that your team knows what's going on. There's no mystery, there's no gossip as well as the fact that you need to make sure you have a procedure in place so whenever anybody leaves your business, you don't forget to remove certain access, company property, things like that. Even if you're just starting out and you have a small business and you're starting to make just a couple small hires, even part time hires, this is important. Setting the procedure is going to help you now when you're small and when you grow later on, this is not glamorous, this is not sexy, this is not fun, but it's necessary to run a tight ship with your business. So let's get into it. Let's get down a bit. I want to start by saying that no matter what the circumstances are, when your employee leaves, you need to have the same procedure and we're going to Start with how this is communicated to the rest of the team. When somebody leaves your team, the way you handle it is very important, especially in the early days of your business. You know, maybe we don't realize what's going on when we're working at a company with, you know, 500 plus employees. You don't even notice if somebody in a department you're not even associated with leaves. For people that are starting out with teams of 5, 10, 15, 20, 30, 40 people pretty much know everybody that's working there. Now, a lot of people say transparency is the key in these situations. Now, I don't think transparency is the right word. I think clarity is the right word. Why? Because there are certain pieces of information in these, you know, delicate situations, in these sensitive situations that are not supposed to be privy to everybody on your team. Maybe an employee has approached you and said, hey, I'm moving on to another position because of a personal situation I have, or maybe I'm taking some time off, and they don't want to share that information with everybody in the world or everybody on the team. So raw transparency is not really always the best policy here. But clarity is you want to make sure you clear the air and you let people know what's going on. So regardless if they're being fired, if they're resigning, whatever the situation is, I highly recommend that you communicate changes to your team regularly. So whether you do a monthly, you know, all hands meeting, or if you post updates in your, you know, project management software, whether it's basecamp or Trello or whatever, or in Slack, let people know, hey, so and so is leaving the team. They're moving on right now. And I also like to include our appreciation for their contribution. So we appreciate their work. And this is regardless if they're being fired or let go or anything like that, they did something, they contributed in some way, hopefully during their time with the team. So I just like to, you know, say, hey, thanks for all the contributions they made during their time with us. We wish them all the best. It's better for them to hear from you than through the rumor mail. The worst thing you can do is not communicate at all and say nothing. Where they're just like, hey, where's so and so? And they're like, oh, you know, that person left the company, you know, three weeks ago, really? And that creates a sense of instability on the team when. When they feel like they're just not in the know and things are changing and they start thinking about themselves, well, am I gonna get let Go. So you need to get in front of it as the leader of the business. Sometimes this is a lot easier than other times. Like say, for example, you had a, you know, superstar employee on your team that's been working there for three years. We just had an amazing employee that has moved on to another opportunity. And this is really easy because you can get on a call with everybody and you could say, hey, so and so is leaving. We wish him all the best, he's fantastic, we appreciate all the hard work. We can make a few, you know, compliments and jokes, stay in touch and it just clears the air and everybody knows. But when it's not so pleasant, you still need to do the job. You don't need to give details, but you need to let people know what's going on and that this person's no longer be working here. One of the things I like to communicate, and I've learned this in a lot of books that I've read from other entrepreneurs, successful entrepreneurs, is that when you are delivering this type of news, the underlining message you're giving the team is, hey, we appreciate everybody's contribution and this person's gonna move on to another opportunity is leaving us, but the show must go on. The ship has to keep moving forward. Our goal as a company, as a team needs to be fulfilled. And it's not to say that everybody's expendable, but it's to say everybody contributes to that goal now. And then when they leave, you know, we just pick up the slack and we just continue going. You know, we working towards that goal and that we need each other so we can get there. And then don't worry as a member of management, we're going to make sure that we find somebody to fill in the gaps and replace this person so we can keep moving forward. And that's kind of the general kind of consensus of a lot of entrepreneurs and leaders. I've read that it's important for you to communicate as a leader that we are a team, we're working towards it. Another good analogy is a sports team. So every year a sports team tries to win the championship or wins the cup or whatever, but if a player gets traded or leaves or whatever, retires, it's not like they stop trying to win. They keep trying and they try to, you know, recruit other players, try to, you know, move on and keep trying to achieve greatness. And that's the message you need to send your team. Secondly, you need a simple list of to do's logistically that you or somebody on a team needs to do to make sure that this person is off boarded from the team properly. Just like you onboarded on them, you know, they had training and you gave them access to all your, you know, software and materials and your product itself and all that kind of of stuff. And you set them up with an email, you're gonna have to just reverse that. So in our company we have an onboarding procedure and an off boarding procedure. So when somebody moves on, we know exactly after their, you know, last day at work, we calculate their, you know, remaining salary, we make sure they get paid out. There's a list of to do's we have to do, remove their access, close out their email. And one of the things we like to do at Webinar Ninja, our software company, is when somebody joins us, we give them a company email. You know, so and so webinar ninja.com and all the access runs through that email. So whether they're using software, they're using that email. So if we deny access to the email, it helps because then they can't do password resets and go into the inbox and verify because they don't have access to the inbox. Because as soon as they leave, we remove access to their email, we remove access to all the other apps that they're using. And it's pretty straightforward thing that takes about 15 to 20 minutes. And you don't need to do this. You can have an executive assistant do this, you can have, you know, a VA do this for you. But the point here is that you need to have a procedure show you cross your T's, dot your I's, make sure that all the access that you gave them during the onboarding gets removed. Now what's helpful is that you give this employee a heads up. Hey, your last day is on this date, the day after we remove all the access. So if you want to get in touch with everybody on the team, maybe pass on your personal email, your personal phone number, whatever to stay in touch. You know, we as the company have that information so we can give your final payout and all that kind of stuff, but we don't share that with the other employees. So you, if you want to stay in touch, you can go ahead and do that now so they know that hey, they're not cut off from their friends and colleagues at Capella University.

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When somebody leaves the company, it's never easy on you as a leader, as well as the fact that your other teammates are going to be a little bummed. Oh, man. You built a relationship with that person. You know, they've kind of bonded a bit, and it's never a pleasant feeling, whether they were a great employee or a mediocre employee or a horrible one, Even if they're like, woo, finally, that person is gone. It feels a little bit shaky when somebody leaves a company, so you got to be mindful of that. And, and this is when you give a morale boost to your company, your employees, you show them that you are their leader and that things will be great. You're going to push forward, you're going to achieve great things because they're going to be looking to you to say, what now? You know, this just happened. What do we do now? You know, what should be the sentiment? Stay positive. Stay mission driven and appreciative of all the contributions that person gave in the process. I also want to mention one more thing. Sometimes this doesn't go perfectly. Sometimes employees leave disgruntled. They're upset. They're just not really good handling bad news. You got to stay professional. You're the professional in the equation here. You got to protect your business, make sure that you're doing the right thing. But the one who acts professional will be obvious to your team. People are watching you as your leader, and they're watching what you do and don't do. Thank you so much for listening to the Hunter Ombie Show. If you love what you hear, hit subscribe. So you don't miss an episode. You don't miss a lesson. Thank you. By hitting subscribe on whatever you use to listen to podcasts, whether it's Spotify or Stitcher Radio or Apple Podcast or Overcast or whatever it is. By hitting that subscribe button, you make sure that when the next episode's available, it's ready on your device. It also gives you access to our archives, all our episodes, over 1300 of them. Only way to get access is to hit subscribe right now. Before I go, I want to leave you with this. Businesses often fun and rewarding and exciting. But sometimes it's mundane. But we have to do the mundane tasks, the boring stuff, so we can enjoy the exciting stuff. Even if we don't have to do it. Even if somebody else in our company does it. We have to have the procedure in place to get it done. Thank you so much for listening, and I'll check you in tomorrow's episode. I'll see you then. Take care.

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