MBA2448 Don’t Make These 3 BIG Team Member Offboarding Mistakes

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Hey oh. Welcome to the $100 RMB where your business gets better with our practical business lessons. I'm your host, your coach, your teacher, Omar Zenholm. And in today's lesson you will learn how to avoid the three big mistakes you can make when offboarding teammates. Offboarding your team members is just as important, if not more important than onboarding them. When somebody on your team leaves you, whether they get fired or they decide to move on to another opportunity, you need to do it right. Not only for short term gain but also for your long term future of your business. And I'll explain why. I'm going to explain what are the three big mistakes a lot of businesses make when it comes to offboarding team members. I'll share real examples from my own business when I did it right, when I did it wrong and give you some tips to make sure you nail your off boarding. There can be some serious consequences when you get this wrong. So let's make sure we get it right. Let's get into it. Let's get down to business. One of your biggest jobs as an entrepreneur is recruitment. It's being a great recruiter, bringing the right people to your team so you can build an incredible business that adds a lot of value to people's lives so that you can earn an income, earn a living and change people along the way. But a part of building a team is losing teammates. Whether they again they get fired, they get laid off or made redundant or they decide to leave. And when they do leave, you need to do it right. One of the biggest mistakes, and this is the first mistake a lot of people make when it comes to off boarding, is not leaving people on a high note. You want to close the relationship right, so you can leave the door open. One of our first hires here at the Hundred Dollar MBA was Cindy. She was incredible at helping us create the podcast we have today. She was a part of the foundational team and she worked with us for a bunch of years. But after a few years, she decided to go out and do something for herself, build her own business. And this is going to happen, by the way, as a business, own people learn from you. The A players may decide, hey, I want to build something for myself. And this happens to us sometimes because we teach how to build your own business. It's part of what we do here at the 100 MBA. So some of that stuff rubs off sometimes and that's okay. So Cindy went off and built her own business. But a few years after that she wanted to come back and do some creative work and work for us. And because we did this right, we closed off the relationship properly and and left the door open. We were thrilled to have her back. And hey, if you hired them in the first place, they must be a great talent. So you would love to have somebody like that back in the fold. And Cindy's back with us, managing the podcast and doing a great job. I learned this from Felix Dennis, who is the founder of Dennis Publishing and the author of how to Get Rich, which is a book. I did a must read episode here on the podcast. Search for it on our website, 100mba.net, one of my favorite books of all time. But he teaches that you should always off board people properly and make sure you do it on a high note. You leave them on a high note for two reasons. Two scenarios could happen. Number one, they can start a competitive business to you and it's better for you to be on friendly terms with that person. If they're a competitor, the second option is that they go out, try something, it doesn't work out for them and then they want to come back. You don't want to make it awkward for them to come back. You want to make it easy for them to come back. And that's why you want to celebrate them and that's why when we say goodbye to our team members, no matter what the reason is, we like to celebrate them a bit and you know, give them a shout out on our all hands meeting. When we meet with the team, we recognize their value, we thank them for their contributions, we maybe even show a few pictures and share a few stories and we say thank you. We make sure we close out properly and say, hey, we wish them all the best and be genuine with that because hey, we do wish them all the best and we want to see them win because one day you might see them again. It's a small world in business and hey, you want to have the reputation of treating people right. Mistake number two that people make is just forgetting to offboard people properly. When you onboard somebody, when you hire somebody, you give them access to a bunch of stuff like an email account, you know, access to software and tools, maybe even physical things like a laptop and a phone if they're in sales or something like that. But when they leave the company, a lot of people don't have a system to make sure that they don't have access to those things. Again, they hand those things properly, or I should say hand over those things properly. And what we like to do is an offboarding checklist. And we have a specific checklist for each department. So there's a different checklist for engineers versus you know, support staff versus admin staff. The reason why we do this is because, you know, every department will have access to different tools and by having a checklist and somebody responsible for each item, like say for example, the accountant is in charge of making sure that they get their last pay and they're off the payroll from that point on. You know, maybe somebody's in charge of removing access to their company email by having an off boarding checklist. You make sure you cross all your T's, dot your I's, and that way there are no leaky areas in your business. This could be a serious security threat for your business if you mess this up. So make sure you have a checklist so you cover all your basis and you make sure people leave properly with no more access and they give up any property that they need to give up from the business. This is also good advice just for practical reasons, to save money on tools. You know, a lot of these software tools charge per user, remove their access, don't give them access anymore, so that way you don't get charged for their usage. Save some money and if you don't have a system, you don't have A checklist. This usually doesn't get done properly. A lot of people just focus on the onboarding, not the off boarding when it comes to access. Also make sure there's a system to hand over any materials or any work procedures or any tasks that that person is working on before they leave the company to somebody else in the company, whether that's a new hire or somebody else in the department. Make that the responsibility to the person that's leaving. Make sure they know that this is what they have to do before they leave. This is what they have to hand over, this is what they have to record or have to document before they wrap up their last day at work. Third big mistake that people make is not getting feedback. When somebody leaves your company, they have a lot of knowledge and experience of working with you. For you in your organization, it's amazing what you can learn by having a simple conversation. A lot of people, what they do is they like an exit survey, where they send them a survey to fill out. But not a lot of people are gonna take that seriously. And you're not gonna learn as much as if you just have a conversation, a 15 minute conversation with this person. Sort of like an exit interview they call it. But I like to just call it a chat. And usually in that chat, I spend a few minutes thanking them and wishing them all the best and learning what's next for them. And then I ask some simple questions, like I'm interviewing them on a podcast and I just say, what was your favorite thing about working for us? And what are some of the things that you'd like to see improve? Or what are the things that you would tell somebody who's new to the company to look out for how to be successful? I sometimes ask the question, if you were the boss for the day, for the whole company, you can make any changes you want. You had a magic wand, what would those changes be? Now? I used to personally do these interviews myself, but then as the team grew, I actually had somebody else do these questions. And sometimes that's even better because maybe somebody would be more forthcoming and a little bit more honest and not feel embarrassed if the owner of the company is not asking these questions and somebody else, maybe from HR or an admin person, and then they can record all the answers. You can even record the call if you want to, and then transcribe it to make it easy. But the point of the conversation is so that you can improve. If they're just saying good things, okay, great, double down on those things. But you want to Learn what you can do better and how you can add more value to your team members. Getting feedback is so important. Even if you just get one little thing, one little nugget from one person, it's going to be worth a lot. Because it's very rare to find somebody that has worked in your company and then is moving on to somewhere else. They're seeing both sides of it, how it is to be in the company and out of the company at the same time. So their perspective is actually really valuable and can help you attract the right people, keep the people that you love on your team happy and employed with you, and just overall have a better business that your team members will love working for.

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All right, so those are the three big mistakes. Let's recap real quick. Number one is not celebrating them when they leave. Number two, making sure they're off boarded properly with an off boarding checklist. And. And the third one is getting feedback from that person that's leaving. Now, one of the things I like to do when I learn that somebody is leaving or when we have to have that conversation where we tell them that they're not going to be working with us anymore, we're firing them, is I try as much as possible to actually communicate more with them, whether it's through message or through their manager or make sure that they know that, hey, we're going to support them through this transition, we're going to help them out. Whether that's letters of recommendation or references or training or resources, they need to do well. In their next position. I know that sounds strange, but I want to make sure that I finish strong with anything I do, and that includes a relationship with an employee, I want to let them know what's going to happen. Hey, this is the, you know, the last few weeks are going to work. This week you're going to do this, the next week you're going to do that. This is how you're going to close off your last day. This is how you're going to get paid. This is your last payment, all that kind of stuff. So they're clear and they know that they're being taken care of. You want to be as professional as possible about this and make sure they know that, hey, even though our working relationship is going to come to an end, we're going to do it right. Another tip I want to share with you is when it comes to after they leave and they're looking for work, maybe, or maybe they're in a new job and they need some feedback or help, I like to stay in touch with teammates that have contributed positively to our business. I get their email, I get their social media, and I like just to check up on them maybe every once every six months. How are you doing? How's the new job? What's going on? Can I support you in any way? Do you need a phone call or recommendation for a promotion in the job you're about to go into or in the company you're in? And the reason why I do this is because good talent is rare. And if they're good, I want to just stay in touch so that when they're looking for a new challenge or they're looking for a new opportunity, maybe something will open up in your company. A new position, a new role, something that would be perfect for them as they have grown in other capacities in other companies to keep that door open again. Sometimes I just know that there's a good role in another company. A friend of mine's company, my network, another fellow entrepreneur, and I tell them about it. And then what happens is that the law of reciprocity kicks in. And then one of my friends, one of my colleagues in business does the same for me when I have an opportunity, when I'm looking to hire somebody. So just because our working relationship is over doesn't mean our relationship is over. I can continue to contact them and make sure they're okay. And also, I'm just really concerned about making sure they're all right as people. Well, there you have it, guys. You want to avoid these three big mistakes like the plague. But you want to make sure you do it right and do the right things that I mentioned, the right practices, and you be as professional as possible. Finish strong is what I say. Make sure that you show this person that's leaving that no matter what the circumstances are, you're going to do what's right. That wraps up today's lesson. Thank you so much for listening. If you love this podcast and you want to support us, the best thing you could do is to subscribe to the show to follow us on Spotify or Apple Podcasts. We're on every player, every podcast app. So whatever you like to use, go ahead and follow the show right now. Thank you so much for doing that. Before I go, I want to leave you with this. One of the hardest things about running a business is people, is managing people, is working with people. Because people are different. People have emotions, people have ideas, opinions, ways of thinking. And you need to adjust and adapt and be flexible with that. But also you need to create a cohesive culture in your own company that people have to fall in line with. So I would say the people element is the hardest part of business. So if you get that right, if you work on that on a regular basis, you're going to be all right. Everything else is quite easy in comparison. Thanks so much for listening and I'll check you in the next episode. I'll see you then. Take care. Of.

ADP knows anything can change the world of work. Like what if a blocked shipping port caused a worldwide coffee shortage? Suddenly, businesses are scrambling to manage an increasingly drowsy workforce. Productivity slips 20% just due to the extended time it takes to conduct a job interview while yawning. Anything can change the world of work. From HR to payroll. ADP helps businesses take on the next anything. ADP always designing for people.