13 Things to Think About BEFORE You Quit! [Tips from an HR Pro]

I get so many calls, emails, and messages with questions about resignations and terminations that I decided to write an article about it. 

Separation anxiety! Fear of retribution and retaliation! Black-balled! Awkward exclusion from important meetings! Muted conversations when you walk into a room! Wonderment about your treatment on the way out the door! Will they prevent you from being rehired? Will they give me a bad reference? All these things (and more) are feelings employees have when it's time to cut the cord from an employer.  On LinkedIn there's plenty of talk about how to GET a job, but not so much about how to leave or what to think about on your way out the door. 

Let's face it, there comes a time when you have to jump ship! When it eventually happens, you need to face your final moments with a company in clear confidence. Hopefully, you are leaving of your own volition and have made a choice to join a better company, but still – you're leaving. In general, employers don't take departures well for a number of reasons:

• It forces them to recruit, which costs time and money
•  It typically causes those who work around you to ALSO consider alternative options (especially those with +3 years of tenure)
• It affects the retention rates, which most organizations report on internally and is often a reflection on HR and Managers efforts on engagement/retention
• Terminations (involuntary) also increase employers Unemployment Insurance experience rate – more UI taxes for them.
•  Leaving causes fewer employees to do even more work (increasing dissatisfaction – which in turn might cause them to look too)
• A new hire will need to be trained and most training lasts well into the 12 - 18 month mark
• Forces employers to consider the elephant in the room – that there was a REASON for your departure (ex. Bad management, salary issues, work/life balance concerns, career/development issues, low morale, ethics or employee relations issues)

So let's get some of the LEGAL CONSIDERATIONS out of the way –

• Reference Checks – most companies only release Date of Hire, Date of Leaving, Position/Title, and Salary (all with a signed release that you have authorized during the offer process). There are still a few companies are left who ask things like "Is John Doe rehirable...did he/she come to work on time...how would you rate their performance, etc." There are legal landmines awaiting companies who answer those questions – most attorneys advise against it generally.
• Rehire Status – If your state has an "At Will" employment law, this law works for both employer AND employee. Most employees think it only applies to the employer who wants to fire you "with or without notice or cause." However, the law extends itself to employees! It means YOU can leave "with or without notice or cause." So if an employer refuses to rehire you because you didn't give 2-weeks notice or left unexpectedly (exercising your At-Will rights under the law), you just might have a winnable case! 
• Negligent Referral/Defamation – If you leave and your last employer gives you a sour reference that is inaccurate, malicious or untruthful in any way, you might have a case on the grounds of negligent referral! Malice is hard to prove though, so there's little consolation in seeking this legal pathway as a refuge. There are also risks for employers if they don't disclose to potential employer that you "stole money" and you're applying for an Accounting job or that "you stabbed someone in a fit of rage" – which lead to you losing your job.

Here are a couple of things you need to do as you prepare to depart

• If you're starting to search for a job and are using LinkedIn, remember that LinkedIn might be reporting to your network that you "updated your profile," which might be a subtle indicator to your co-workers that you're job shopping. Turn off those notifications in your profile.
• Start clearing the computer, because one of the first things most companies do is disable your access. They have every right. So if you have personal things that you want to keep, start getting them off ASAP! 
• If you are resigning without another job to move into, be aware that you will NOT receive unemployment benefits. You are eligible only if you lost your job due to no fault of your own.
• If you are in a dispute with the company, save important emails and documents that support your case – save them down to your a flash drive, Dropbox or email to your personal account. Understand the risk, as this may be a policy violation.
• Start thinking strategically about leave time that you have remaining...especially sick leave, since most companies don't tend to pay it out. Do you have vacation planned? Do you need to take it before you give notice? Will the vacation be paid upon your leaving? Will you be prevented from taking additional leave after giving notice? This may play a strategic role in how you choose to leave or give notice.
• Figure out what past practice has been about the final check. Is it paid on the last day in the office or on the next payroll date? Are you OK waiting for another payroll? If you're being terminated, some states (including mine, Texas) have strict laws on how soon after termination the payment must be made.
• Do you have outstanding 401(k) or other company loans? How will that be handled upon your departure? If you don't pay those loans off the company may 1099 you, making it appear as if you earned more money in the year.
• Is there a vesting schedule for your 401(k)? Should you stay a while longer to get 100% vesting?
• Did you take advantage of Tuition Reimbursement? Do you have to repay it? Don't worry if they've made you sign an agreement saying you'll stay with them for 2 years – some courts have found those may constitute an employment contract. Would they rather pay you a salary for 2 years under that "contract" they've inadvertently made OR forgive the $15,000 they've incurred paying your educational expenses? Some companies may send you a Form-1099 for the expense. It may be in your favor to NOT agree to such things at this point of resignation. If they are going to send you a 1099, there should have already been an agreement for that in place.
• If you are leaving without the company's "preferred" period of notice, you may want to get a written statement about your rehire status. This may help the HR team be reminded that At-Will laws protect you too!
• Most employers understand that you may not want to have your current job contacted for an employment verification. Unbelievably, some employers STILL do it...most times by accident. You need to make sure that you don't allow them to make the mistake. 1) ask them not to verify your current employer 2) if you are filling out a paper authorization form, draw big boxes, circles, stars and notes "DO NOT CONTACT" 3) if you are filling out an electronic authorization, you may want to completely exclude the current job (ask the new employer for permission to do this).  
• If you are leaving a job like IT, HR, Legal, Senior Operational and going to a competitor or have a sensitive role, they may ask you to leave soon after you resign.  If that should happen, it is common and EXPECTED that they should pay you through the last day you proposed in your resignation letter. 
• In writing your resignation letter, keep it nice and polite if you think you might want to work for the company again in the future. Saying negative, insulting or accusatory things could be a reason to not rehire you. Managers, Human Resources, and Employees will change – your termination file will not! Those little nuggets stick around for a long time, so make them sweet!

As you can see there are a a number of serious considerations that should be given to the process of resignation and termination from a job; don't take this process and these steps for granted! The more you know, the better this process will work in your favor. I'd love to hear your feedback and appreciate you sharing this knowledge within your network!

You can learn more about Chris Murray, make booking contact or get one-to-one personal consultation at www.ahiresuccess.com.