Annette Dixon: When a Key Employee Resigns

When a key employee resigns it can be a very disruptive period within a business as the owner and fellow colleagues see them in a certain light.  

Recently one of my clients experienced this when a key staff member resigned and moved onto a competitor after three years with the business.

Following their resignation the departing employee started to disrupt existing staff members; they created negativity within the workplace and challenged the business owner to see if they would match the offer from the competitor.            

Together we worked with the business owner on a strategy and identified what the ‘pros and cons’ of trying to match the offer.

We reviewed the behaviour of the exiting employee over the previous three months and assessed what kind of succession strategy needed to be put in place to cover this employee.

Upon completion of the analysis it was clear that the business wouldn’t be able to match the offer and the employee’s behaviour had become so disruptive it continued to create negativity within the business. 

Additionally a couple of new staff, who had recently come on board, had been showing great results and it was determined that they would be able to ‘step up’ and cover the clientele this key employee had managed.

The end result was an amicable separation between the owner and the departing employee, the existing staff settled down and the new staff jumped at the opportunity to step up.   

Employees will always move on at some point, the key for all businesses is to have solid succession and coverage strategies in place to manage these types of situations.

Don’t rush into offering more money on receiving a resignation, as this doesn’t necessarily solve the issue. Analysis of the situation is key and taking positive action is a far more effective strategy.     

To discuss how End2End may be able to support the successful operation of your business, call (02) 8977 4002