Employees are the core of any business, and every business owner may have the desire to keep talent within the organization. But due to many reasons, employees leave their job either voluntarily or involuntarily. This will create open positions, and the company may have to find suitable candidates to fill the role.
The human resources cadre is responsible for managing employees within an organization. So, they have to deal with the employee leaving process. As a part of HR, you should possess great knowledge of various types of termination and procedures. It will boost your knowledge and help while dealing with the termination of employees within the organization.
Here we have listed multiple termination types in brief that can help you to process the employee separation from the organization in a proper manner.
Voluntary termination is a type of job discontinuation that occurs when an employee desires to end their contract early or wants to leave the job. There are three types of voluntary terminations i.e., employee resignation, job abandonment, and early retirement. An employee may leave the job for various reasons, such as dissatisfaction with workplace culture, lack of performance recognition, or, most commonly, finding a new and better job.
1. Employee Resignation
Employees simply resign when they feel the job no longer fits their skills and future goals. They share a formally written letter with the employer stating their desire to leave their current position at the company. Then the employer checks the reason for leaving and then shares a relieving letter with the employees as an acceptance of their resignation.
2. Job Abandonment
This type of situation occurs when an employee stops going to work without any notice. Job abandonment can create problems for employers as they may not have been informed of an employee's leaving. Therefore, the position will remain open until they find a suitable candidate. Job abandonment can be risky for employees as they might not have sufficient time to pack their belongings from the workplace and find a new job. When employees do not get in contact till the number of absent days mentioned in the predefined policies, the employer terminates the employee.
An employee gets retires when they have the desire to stop working altogether. Most employees retire when they have reached a certain age and have saved enough funds to live a comfortable life. However, some companies have predefined policies that when employees reach a certain age, they will have to retire.
This is a type of separation where an employer removes an employee from the employment. It occurs when an employee has poor job performance, breached the workplace rules, or the company is downsizing. This type of employee dismissal occurs under the will of the employer.
1. Constructive Discharge
Constructive discharge occurs when an employee leaves the company under unlawful threats. When an employer creates unbearable work conditions for an employee, it leaves them no choice but to quit. This could happen due to discrimination, harassment, or hostile workplace culture. This kind of employee dismissal from a job happens due to unprofessional behaviour, and it affects the reputation of the business.
When a business is facing financial problems, it may leave no other option but to dismiss employees from the job. It also happens when a reorganization of the company takes place. It may make the unsuitable employee’s job no longer necessary. Layoff may happen to single or several employees at the same time.
3. Dismissed From the Position
Employees might get dismissed from their position if they are underperforming or have breached workplace policies. The employer might interact with employees to solve the problem if possible. After a certain period, if they are still not meeting the expectations, they might get fired from the job.
4. Separation Through Mutual Agreement
In this process, employees and organizations have come to an agreement on employee separation. This could happen when the business is downsizing, or the employment contract is ending. In order to do so, both parties must agree with the terms of the agreement. This applies to both permanent and fixed-term contracts and takes place during the entire duration of the employment contract.
It becomes crucial to understand various types of employee terminations for HR to effectively deal with the separation process. Also, when an employee leaves the company, HR may require to find a replacement to keep the business running smoothly. However, choosing unsuitable candidates can affect productivity levels, and eventually, the organization may face huge losses. Therefore, If business owners focus on branding, the chances of getting the skilled and suitable candidate’s attention. Ultimately, it will help HR in hiring top talent and retaining them in the organization.