Picture the scene. The startup you created has survived the first year and seems to be thriving. Through the bad times, you managed to put a successful and well-balanced team together. If you were partial to acts of selflessness, you’d probably say they are integral to the whole operation. So, life is grand, and the horizon seems bright.

Then, disaster strikes. “Boss, we need to talk. I’ve been offered another job, and I’m going to take it.” The words hit home like a ton of bricks. One of your best workers has dropped a bombshell and ripped the team apart. Even worse, the company’s future is in jeopardy.

Screaming bloody murder is tempting after everything you’ve been through to get to this point. And, understandably, it’s the reaction for most bosses. Dealing with employees who want to quit is never easy, but there are dos and don’ts. Remember that burning bridges is only a good idea if you’re an arsonist!

These are a few productive and effective ways to handle employee resignations.

Listen And Be Proactive

Controlling your reaction is the first piece of the puzzle. Anger doesn’t help anyone because apart from souring a positive relationship, it puts productivity at risk. Employees who are leaving have nothing to lose and are less likely to pull their weight if they are in a war with the boss. On the flip side, there is no need to be magnanimous on hearing the news for the first time. It’s a complicated and tricky thing to deal with, so you are going to need time. Therefore, listen to what they have to say and respond by thanking them and asking for time. The listening part is very important because it should give you an insight into their reasons for leaving. We’ll talk cover this aspect in detail later in the article, as this information can impact your counteroffer.

Speak Candidly

Once you’ve had time to think about the conversation, it’s time to react. Some bosses who have no concept of how to handle employee resignations are often egotistical and don’t want to lose face so accept a letter of resignation without hesitation. Others act on behalf of the company and explain their thoughts and feelings to the soon to be departing. Which type of manager are you? Both have their pros, but the latter is advantageous because it shows that you care. There is a fine line between an honest conversation and emotional blackmail, and finding this balance may be the key. Tell them that you need them and can’t afford to lose them right now. Tell them promotion opportunities are coming up (only if true), and they are on the list of candidates. Tell them that they will get a raise. In short, tell them what you feel and see how it impacts their decision.

Don’t React Emotionally

You may think that they are irreplaceable, but no one person is bigger than the company. So, don’t promise them the world if it is going to harm the firm’s bottom line. It’s incredible how many bosses offer something that is too good to be true that later lowers profits. Yes, they are an integral part of the team, but they aren’t worth crippling the company. Also, think about the reaction of their peers. As soon as they hear that the individual is getting a company car and extra vacation allotment, for example, they’ll want the same. And, how are you supposed to turn them down? If you say no, you’ll have an even bigger crisis on your hands.

Set Up An Exit Interview

Businesses only tend to interview people when they are coming in, not when they are leaving. However, this is a bad habit because it allows people to exit without tapping into their brain first. Employee turnover is something that you want to keep to a minimum for the sake of the firm. So, who better to ask for feedback from than the person who is jumping ship? They will be able to answer honestly and frankly about their reasons for leaving. Your job is to think of the best exit interview questions to give you more of an insight. Once you have the information, you can use it to think of ways to prevent workers from wanting to leave in the future. For example, if they mention money, consider how to reward people financially. Sometimes, the best option is to invest in healthcare or life insurance. You won’t know unless you ask.

Kick-Start Recruitment

As soon as someone leaves, a replacement will likely come through the door. The quicker this happens, the better because it will help the team return to a sense of staffing normalcy. With that being said, please don’t rush into anything which may end up being a mistake. Hiring an employee can be a lengthy process because the stakes are high. Bring them on without thoroughly vetting them, and you’ll have them on the payroll for a very long time. If they are incompetent, this employment decision will result in a significant waste of money and resources. A good trick is to mix outsourcing with in-house interviews. Get an agency to find suitable applicants ASAP and then take your time asking them questions and analyzing their personality. One thing is for sure; you need to start looking for replacements as soon as you see the resignation letter in your inbox.

Speak To Your Lawyers

Hopefully, everything up to this point will have gone smoothly, and there will be no need for legal representation. Still, this doesn’t mean that you shouldn’t speak to the company’s lawyers about how to address the matter. The potential problem is intellectual property – they have access to your records. If they are leaving to go to a rival firm, this will undoubtedly give them an edge. As a result, you need employees on the way out to sign a non-disclosure agreement (NDA) to ensure they don’t share company secrets. A lawyer should be able to draft one up that is airtight and doesn’t harm the future of the business. Sadly, this is a way of life these days and you are obligated to protect your business.

Finally, don’t forget to thank them for their hard work and be willing to provide them with a letter of recommendation in the future if requested. Always remember those were with you from the beginning of your now successful startup.

*Collaborative post