5 Steps to Controlling Unemployment Claims: Resignations

http://www.alcottgroup.comEmployee turnover is an inevitable part of business and there are times when an employee will choose to leave your organization. The steps you take in handling resignations are extremely important as it will save you the grief of having to challenge an unemployment claim in the future. In addition, it will provide you with insight to possible risks within your organization or business practices that are causing you to lose good employees. By following these 5 steps in handling employee resignations, you’ll be ensuring a smooth transition for both your organization and your employees.

  1. Discuss the reason(s) for the employee’s departure
  2. Ask for a letter of resignation with the date of departure and signature (typically, a 2 week notice is given depending on position type)
  3. Prepare termination paperwork and submit with letter of resignation
  4. Setup date and perform an exit interview
  5. Analyze the exit interview to see if there are any improvements that you can make within your organization

A few things to remember:

It is extremely important to document the employee’s resignation. I have stressed the importance of documentation before, but it is even more crucial when an employee resigns. After you are informed, it is critical to receive a signed letter of resignation or at minimum an acknowledgement in an email. The reason for this is simple-if the employee applies for unemployment insurance, a voluntary resignation of employment most likely will result in a denial of benefits. This in turn helps reduce the ever-increasing costs of unemployment insurance and reduces the rate that we must pay.

Second, it is also important to find out the reason as to why your employee is leaving as minimizing turnover is beneficial to your business. An exit interview can provide a window into how employees perceive your organization and may bring to light risks that you are not aware of. Often, an employee may not be totally candid as they are uncomfortable in telling you the reasons.

So remember, when you learn that an employee is leaving, find out why and then ask for it in writing.

Bob Chanin is the director of HR for Alcott HR Group, a leading Professional Employer organization (PEO) providing HR support and employer services to small and mid-sized organizations.

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