Effects of employee departure

From CEOpedia | Management online

One of the major problems in human resources management is to move employees out of work and the consequences arising out of their departure. The departure of employees from the company is caused by:

  • departure of their own volition
  • as a result of redundancy,
  • due to unforeseen random events.

The departure of an employee voluntarily may be caused by a number of economic, psychological, health factors, etc. The greatest influence on departure from work is:

  • bad atmosphere in the workplace
  • better wages in another workplace,
  • family or personal relations i.e.: distance from home, family needs, finances.
  • stress
  • little opportunity for professional development in a given position,
  • transition to retirement or pension.

In turn, the departure of workers due to layoffs, may be the result of:

  • job cuts,
  • the elimination of the vacancy,
  • termination of a contract for a specified period,
  • disciplinary dismissals,
  • the unsatisfactory results achieved by the employee.

The employee's departure due to random events may be the result of unexpected events such as:

  • illness,
  • all kinds of serious accidents,
  • death of the employee.


For workers, positive effects of departure include:

  • improving financial situation as a result of the emergence of new attractive work,
  • sense of value,
  • improved mental state.

Negative consequences of departure are:

  • worsening financial situation, and hence impoverishment of the individual and his family,
  • a sense of worthlessness,
  • family problems,
  • hopelessness, apathy, isolation from society,
  • in extreme cases, loss of a job can lead to a nervous breakdown and even death.

Examples of Effects of employee departure

  • Loss of Talent: When an employee leaves, the company loses the talent and expertise of that individual. This can be a loss of knowledge, experience, creativity, and innovation.
  • Loss of Productivity: The departure of employees can lead to a decrease in productivity as the company must find a new employee to fill the role and train them.
  • Loss of Morale: Departing employees often leave behind a feeling of disappointment and a lack of morale among their coworkers. This can lead to decreased employee engagement and a sense of instability.
  • Increased Costs: Companies must invest a significant amount of money and resources when hiring new employees. This includes costs associated with recruitment, onboarding, and training.
  • Loss of Relationships: Employees build relationships with their coworkers and customers over time. When they leave, these relationships are lost and must be rebuilt.

Advantages of Effects of employee departure

Employee departure can bring both advantages and disadvantages for an organization.

  • It can help reduce costs, as organizations no longer need to pay for the employee’s salary and related benefits.
  • It can create more space for new and better employees, thus helping to improve the overall performance of the organization.
  • It can also help to create a more positive work environment, as the people who remain in the organization can take on more responsibility and be more productive.
  • Departing employees can also provide the organization with an opportunity to re-evaluate and streamline processes, which can lead to improved efficiency and higher profits.
  • Finally, employee departure can also help to open up new positions and create new opportunities for growth and development.

Limitations of Effects of employee departure

Employee departure can have a variety of effects on an organization, both positive and negative. Below are some of the major limitations of employee departure:

  • Decrease in employee productivity: When an employee leaves the organization, their productivity is immediately diminished, as the organization must find a replacement and new employees typically require training and time to become productive.
  • Loss of institutional knowledge: Employee departure can also mean a loss of institutional knowledge. This can be especially challenging in organizations with complex and/or long-term projects.
  • Impact on morale: Employee departures may also have a negative impact on morale, as co-workers can feel that their efforts and contributions are not valued.
  • Increased costs: Employee departures can also lead to increased costs, as the organization must pay for recruitment and training of new employees. Additionally, the organization may need to offer severance packages to departing employees.

Other approaches related to Effects of employee departure

There are numerous approaches related to the effects of employee departure, such as:

  • Retention strategies: Companies should focus on creating effective retention strategies to ensure that employees feel valued, motivated, and included in the organization. This can involve offering competitive salaries, flexible working hours, career mobility, and providing a healthy work-life balance.
  • Succession planning: Organizations should plan ahead for employee departures, in order to ensure that new hires are the right fit and adequately trained for the roles they are taking on. This includes creating job descriptions, evaluating current employees, and actively recruiting to fill the gap.
  • Training and development: Companies should invest in training and development to ensure that employees are equipped with the necessary skills and knowledge to perform their jobs effectively. This can involve providing on-the-job training, offering mentorship programs, and offering opportunities for career growth.
  • Employee engagement: Companies should ensure that employees feel a sense of engagement with the organization and their colleagues. This can include providing meaningful work, fostering a culture of open communication, and recognizing and rewarding employees for their efforts.

Through effective retention strategies, succession planning, training and development, and employee engagement, companies can ensure that the effects of employee departure are minimal. By investing in these practices, they can ensure that employees remain engaged and motivated, while also preventing a gap in the workforce.

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