What to do when an employee resigns, from the initial panic to planning your next hire. 

We talk candidates through handing in their notice almost every day.

What to say, how to approach the conversation and what happens next. It's all very normal to us.

But actually, handing in your notice can be challenging for both employees and employers.

As a business owner, I've had my fair share of resignations. Some I've handled to perfection (if I do say so myself), others I've panicked over and probably said completely the wrong thing.

One I even cried over. Not in the room, thank God, but it was genuinely hard to hear!

Whilst employers are often held to a higher standard, we're only human. We care about our people and sometimes a resignation can feel like a bit of a kick in the teeth.

So, if an employee has just handed in their notice, here's my advice on what to do, what not to do and how to plan your next steps.

What should you do when an employee hands in their notice?

First things first: stay calm, acknowledge their decision and avoid making promises in the moment. Understand why they're leaving, ask them to confirm the resignation in writing and review their contract before making decisions about notice periods, counteroffers or replacements.

Sounds simple, doesn't it?

Until you get that unexpected meeting request.

"Have you got five minutes for a quick chat?"

Immediately, your mind starts racing. What's happened? Are they leaving? Have they won the lottery and decided they're never working again?

And then comes the blow...

"I'm handing in my notice."

Cue panic, frustration, worry, confusion and about 15 other emotions arriving all at once.

Here's how I'd recommend handling that initial conversation.

1. Acknowledge it. A simple "Thank you for letting me know" is a perfectly good place to start.

2. Seek to understand. Ask what's prompted their decision and listen. If you're considering a counteroffer, this information will be pretty important!

3. Don't panic-promise! Offering more money, a promotion or flexible working might be tempting, but don't commit to anything before you've had time to think.

4. Explain the next steps. Let them know you'll review their contract and come back with a plan. Ask them to confirm their resignation in writing if they haven't already.

5. End positively. You might be disappointed, relieved or internally screaming, but you don't need to share all of that with the person opposite you.

What happens after an employee resigns?

Right. They've left the room, you've shut the door and your brain is doing approximately 100mph.

Who will manage their clients? What about that project? How long is their notice? Can we replace them? Do we even want to replace them?!

My advice? Give yourself a minute.

Particularly in a small business, losing someone can feel enormous. Speak to a trusted colleague, have a cup of tea (maybe something stronger later) and rationalise your thoughts.

You need to respond to the situation, not react to it.

Then work through a few key questions:

1. What does their employment contract say?

Before making any decisions, get your ducks in a row.

Review their contractual notice period, holiday entitlement, any restrictive covenants and whether garden leave is an option.

Make sure you understand where you both stand and seek HR or legal advice if you're unsure.

The last thing you need is to turn a resignation into an employment dispute!

2. Should you try to retain an employee who's resigned?

Sometimes a resignation comes completely out of the blue and you're devastated to lose someone brilliant.

Other times, if we're being completely honest, it might not be the worst news you've ever received.

Perhaps there have been performance challenges, cultural differences or concerns about whether they're right for the business long term.

Ask yourself whether you genuinely want to retain them or whether you're simply worried about the gap they'll leave behind.

They're two very different things!

3. Should you make a counteroffer?

Ah, the counteroffer. A topic we discuss A LOT in recruitment.

If someone is leaving purely because of salary, perhaps there's a sensible conversation to be had.

But if they're leaving because of culture, progression, leadership or workload, throwing another £5k at them probably isn't going to fix the problem.

A counteroffer needs to make commercial sense, be fair to the wider team and genuinely address the reasons they're leaving.

Don't make one simply because you've panicked about having an empty desk on Monday morning.

4. Should an employee work their notice or go on garden leave?

This depends on their contract, responsibilities and the needs of the business.

Garden leave means an employee remains employed and paid during their notice period but isn't required to carry out their normal duties.

In theory, they're at home enjoying their garden. In reality, they're probably catching up on Netflix.

It's not always necessary or appropriate, so check the contractual position before making a decision.

Whether they're working their notice or not, make a plan for handing over responsibilities, communicating with clients and informing the wider team.

5. Do you need to recruit a replacement?

Now we're getting into my territory!

The natural reaction when someone resigns is often, "Right, we need to recruit someone. Immediately!"

But before dusting off the old job description, consider what your business actually needs.

Maybe the person leaving has been with you for five years and the business looks completely different now.

Perhaps your marketing team needs stronger digital skills, your creative department has evolved or your business would benefit from a more commercially focused marketing leader.

And let's be honest, sometimes the person leaving wasn't quite delivering what you needed anyway.

This is your opportunity to review, not just replace.

Across the Birmingham and West Midlands marketing, creative and digital recruitment market, we regularly speak to businesses whose hiring requirements have changed significantly since they last recruited.

Before going to market, get clear on the role, salary, responsibilities, working arrangements and what success looks like.

Then speak to a recruitment agency you trust. A good recruiter should help you understand the market, challenge your thinking and plan your next hire, not just throw CVs at you.

Finally, we're all human.

Having someone hand in their notice can be difficult, particularly when you've invested time, energy and emotion into building a team.

We're expected to handle these situations professionally, and rightly so, but that doesn't mean we're not allowed to feel disappointed or frustrated.

The important thing is what we do next.

Take a minute. Get the facts. Make a plan. And try not to say anything you'll regret later.

Trust me, I've learnt that one the hard way!

Need advice on replacing an employee or planning your next marketing, creative or digital hire?

At Pitch we're a midlands-based recruitment agency supporting employers across the region and beyond. Whether you're replacing a Marketing Manager, recruiting a new Digital Marketing Executive or restructuring your creative team, we're always happy to offer advice.

And you don't have to be briefing us on a vacancy to pick up the phone.

We're in this for the long game, and our advice always comes for free :-)

Rebecca