HR isn’t just about welcoming new employees and managing their time in the company. Employees can leave the company as well for a variety of reasons and HR has to deal with this effectively and efficiently. To guarantee successful separation, HR software can help business deal with the various steps during the process. Here’s a look at how HR software can assist when you are dealing with this unique time in your company’s lifecycle.
Managing important documentation
When an employee is departing a business for whatever reason, it isn’t just a moment to say ‘goodbye and thank you’. The process involves many data from employee records, payroll and benefits. Dealing with this data and documentation can be time-consuming and getting it right is crucial. With HR software, the management of this documentation becomes easier.
It is important to note that the required documentation can depend on the reasons behind separation. However, in all cases you will need written proof of the departure and the reason. This might be the employee’s written resignation or your written documentation for contract determination. Furthermore, you need to retain all communication between the business and the employee, including any disciplinary information.
HR software can help track every document throughout the process. This can include things like exit interviews and termination checklists. Good software will also automate some of the steps which can help lessen the burden on the HR personnel. Furthermore, you’ll also want to ensure the documentation is archived for as long as necessary. There have been cases where employees have sued or made claims against companies long after they have left, and you want to make sure you are protected against those as much as possible.
Ensuring compliance with employment laws
Compliance with the country’s employment laws is essential when dealing with employee separation. Non-compliance can end up costing a lot for your company and you want to avoid it as much as possible. HR software can help with compliance issues and ensure you deal with things like health care coverage, final pay and benefits. With the right software, you could automate and make the following tasks a lot easier:
- Paying and calculating the final salary
- Ensuring the employee is reimbursed for remaining expenses
- Filling and managing termination paperwork
Of course, here the important point for business is to ensure you find HR software that supports compliance. This makes localised and free HR software a good option – you are guaranteed that the regulations and laws of your business’ location are followed. For example, an employer in the UAE will have different legal obligations during separations to a Spanish employer.
Terminating employee access to sensitive information
HR software can keep your company safe during employee termination as well. When your employee decides to leave or is fired, you will need to ensure that sensitive information they know regarding your business isn’t leaked or misused.
The most thing to do is to ensure the employee loses access to information once the contract is terminated. The software can be used to automate this, cancelling and redirecting e-mail or phone calls, changing passwords and cancelling login details. It’s important that these steps can be taken instantly if required.
Of course, there are other ways to ensure information stays safe. For example, it’s important to have a record of the information the employee did have access to as well as documentation that guarantees the employee cannot share or distribute this information without consequences.
Managing final pay and benefits
As mentioned above, compliance in terms of salary and expenses is crucial. While there are legal rules surrounding how these are handled, it is also worth noting that you’ll also need to make sure the process is smooth and transparent. HR software can help with ensuring the final salary and expenses information isn’t only compliant but also accurate. Furthermore, software can be used to automate the payment as well as maintain records of those payments. This ensures that your business is protected against any dispute or claim the employee might make.
Good HR software can integrate directly with your financial department. This ensures proper communication between the two departments and makes it easier to ensure the payments are accurate and timely. Furthermore, modern HR software also allows greater transparency and makes it easier for the employee to be part of the process.
Find the right HR software
The above shows that HR software can be highly beneficial in situations of employee separation. But it’s not just about using the software but also finding the right one for your business needs. You want to identify the kind of software you need, focusing on issues such as integration with existing infrastructure, compliance with local laws and regulations, and the appropriate fit in terms of your business size.