7 Unbelievable Facts About Exit Management System in HRM

November 2, 2021by Netroots


Need of Exit Management System:


Exit Management System

The dawn of the 21st-century has witnessed a phenomenal transition in the employer-employee relationship. What often used to be a long-term commitment has drastically reduced to a few years or months in some cases. As a result, resignations and employee turnovers can become a severe burden on a company’s resources. If you are a corporate manager or HR, you can probably understand the significance of an employee’s termination processes. Fortunately, a fully integrated Exit Management System (EMS) can help reduce these inefficiencies, making your job a lot easier. 

What exactly is an Exit Management System (EMS)?

An EMS encapsulates the digitization and automation of operations related to an employee’s departure from a company. From submission of resignation to its automated or manual approval, deployment of emails to relevant personnel, initiation of the clearance process, updating the team’s status, and so much more, become more accessible.

Why is an EMS essential for today’s business organization?

However, providing a positive exit experience to a former employee is as crucial as managing turnover. Human Resource experts and business leaders have frequently weighed in on the matter, strongly emphasizing the above. A poor service termination process serves as a negative deterrent and can boost your turnover rates. Additionally, a poorly managed exit process can multiply inefficiencies by consuming more-than-necessary resources, documentation errors, clearance issues, and delays in the imminent hiring process. In short, an EMS helps:

  • Reduce human intervention and bias in termination processes
  • Increase workforce retention by providing a positive Employee Exit Management process
  • Lessen the burden on the HR personnel by automating tasks
  • Improve decision making and planning processes for managers
  • Significantly improve the company’s image from the outgoing employee’s perspective

7 Unbelievable Facts About Exit Management System

An EMS comes into action upon the reception of an employee’s termination commands or a resignation.

Resignation Forms:

Integrated with the HRMS, your employee can submit their resignation through a pre-designed form. Alternatively, the process can be triggered if the employer chooses to terminate the employee’s services.


As most organizations require senior managerial approval to accept an executive’s resignation, the EMS deploys a message through its portal, the inter-office communication application, or it utilizes the email system. Following the approval, the gears of EMS start rolling.

Updating HR data & task calendars:

The EMS updates your HRMS data now that the employee in question is on his way out. In addition, it follows a reallocation of tasks to other personnel, updates in integrated calendars, and restriction of its data. Moreover, it will generate an email to relevant teams and managers for improved communications about any prospect issues that may arise and thus be resolved timely.


The clearance process, about restricting employees’ access and surrendering of the company’s equipment, is also an essential function of the EMS. Automatically fetched lists from the company’s Resource Management System will be dispatched to the employee. After the employee hands over the material and data.

Issuance of Standard HR letters:

Following clearance, the employee will receive their automatically-generated, standard experience letter. Depending on the organization’s rules and the EMS’s configuration, approval of resignation or other relevant documents are also accessible.

Updates in HRMS:

The Employee Exit Process in HRMS is also continuously updated. For example, the initiation of the notice period and their imminent termination are reflectable on the HRMS. These processes run parallel to the chain of tasks already discussed above. Moreover, the EMS can be configurable to provide timely reminders to the outgoing worker’s managers for better planning.

Hiring & Job Posting:

A fully integrated EMS expedites the hiring for the now-vacant position. It integrates job portals and easily connects with the company’s website. But, first, it places the posts with the role’s description, pending HR’s approval.

Are you choosing the right Exit Management System for your organization?

With a range of available options for Exit Management, choosing the suitable EMS might seem a bit overwhelming. However, you can factor in the following to make this a little easier:

  • Size of the organization
  • Nature of Business & processes
  • Resource allocation
  • Pre-existing systems and their compatibility
  • Workforce’s preferences

If you are searching to know more about how Exit Management System works, leave us a comment. Our team of experts is always carrying the answers to your questions!