Lateral Capital Management, LLC

Holding The Departed Dear

A well-known restaurant investor, Roger Lipton, put it this way: “Treat the departing employee with as much respect and encouragement for his or her future as you can possibly muster, perhaps even a bit more than you feel is deserved. The reason is this: Your remaining employees are paying attention.
If your attitude toward the departing associate is ‘he was never that important, we will do fine without him, or we’ll find someone better,’ those remaining employees will get the impression that they are a disposable commodity, too. They will obviously be less committed co their future with your company and inclined to move along at the first opportunity co someplace that will appreciate them more. Secondarily, if the employee did a reasonable job for you, they could come back at some point, and perhaps make an even better contribution in the future. So your departing message, under most circumstances, and it takes very little time or effort to do this is this: ‘You did a fine job, gave it your best effort, we are a better company because of you, we wish you the best, if there is anything we can do to help you in the future don’t hesitate to ask. If things don’t work out in the new place, we are still here.’
This approach with departing employees will cost you nothing. It’s the right thing to do. It will send
an important message to remaining associates, and will pay big dividends over time.”