Send Them on Their Way: The Benefits of Automating Your IT Offboarding Process

Saying goodbye can be tough, especially when it comes to offboarding employees. There’s paperwork to collect, access to revoke, and a multitude of other tasks to complete. And, let’s be honest, no one wants to waste their time on a process that’s notorious for being bureaucratic and time-consuming. But what if I told you that automating your IT offboarding process doesn’t have to be a headache? In fact, it can be one of the smartest things you do for your organization. Here are just a few benefits of automating your IT offboarding process.

A 2019 study by the Society for Human Resource Management (SHRM) found that the average cost per employee for manual offboarding is approximately $15,000, a significant expenditure considering that the Bureau of Labor Statistics reports a median tenure of 4.2 years for employees. By automating the IT offboarding process, organizations can reduce this cost by up to 50%, according to an Oxford Economics study. Furthermore, a survey by ITProPortal found that 89% of IT professionals agree that automation significantly reduces the risk of human error in the offboarding process, enhancing data security.

Save Time and Money

Manually offboarding an employee can be time-consuming. It requires searching for and revoking access to various systems, collecting company equipment, and completing paperwork. However, by automating the offboarding process, companies can save time and cut costs. Without automation, IT and HR teams can spend hours manually removing access to various systems and returning equipment. With automation, however, these tasks can be completed quickly and accurately, freeing up staff to focus on more strategic tasks.

A study by Nintex reveals that HR professionals spend an average of 49 minutes on a single manual offboarding task. This duration can escalate when considering the multiplicity of systems and access privileges an employee might have. Indeed, a survey by the Ponemon Institute found that 62% of respondents who had left their job retained access to their former employer’s systems, implying the failure of manual processes to thoroughly revoke access. The same study highlights that automated offboarding could mitigate this risk by 85%.

When it comes to cost savings, a report by the Aberdeen Group found that organizations with automated offboarding processes experienced 60% lower administrative costs and 12% lower overall turnover costs. Furthermore, an IBM study showed that automation can reduce the time spent on administrative tasks by up to 20%, freeing HR teams to focus on strategic business initiatives.

Reduce Risk

Offboarding is a risk management issue, and failing to do it correctly could result in costly data breaches and compliance issues. When offboarding is manual, it can be challenging to ensure that access to all applicable systems and data is revoked. Automation ensures that all appropriate systems and data access are terminated, reducing the risk of data breaches and the potential for compliance violations.

According to a study conducted by the Ponemon Institute, the average total cost of a data breach in the United States is $8.19 million, a figure that underscores the financial risks associated with improper offboarding. Additionally, the Verizon 2020 Data Breach Investigations Report found that 30% of all data breaches involved internal actors, highlighting the critical importance of properly revoking system access upon employee departure. Automating the offboarding process can mitigate such risks. According to a survey by ITProPortal, 73% of IT professionals believe automation significantly reduces the risk of data breaches during offboarding. Furthermore, IBM’s Cost of a Data Breach Report 2020 found that companies that had fully deployed security automation saved $3.58 million compared to those with no automation. These statistics clearly illustrate the financial benefits and risk mitigation potential of automating the IT offboarding process.

Simplify the Process

Most IT and HR teams dread the offboarding process because it can be complex, with several steps that need to be completed in the correct order. With automation, this process can be streamlined, and tasks can be completed simultaneously, which makes offboarding less daunting for HR and IT staff.

Research further supports the simplification benefits of automation. According to a report by Deloitte, 65% of organizations cite complexity as the most significant barrier when it comes to offboarding employees. Gartner reports that automation can reduce the number of steps in the offboarding process by up to 60%, significantly simplifying the task for IT and HR teams. Furthermore, a survey by ServiceNow found that organizations that have automated their offboarding process experienced a 50% reduction in HR inquiries related to offboarding, further underscoring the efficiency and clarity that automation brings to the process.

Boost Employee Morale

While it’s not often highlighted, automation of the offboarding process can significantly improve the morale of existing employees. A study by the Society for Human Resource Management (SHRM) found that workers tend to feel disengaged and less productive when they see their colleagues go through a messy or disorganized offboarding process. Automating this process ensures it’s handled professionally and efficiently, which can boost the morale and productivity of your remaining team members.

In a recent survey conducted by KPMG, it was discovered that companies that automate their offboarding process see a 50% reduction in the time it takes to offboard an employee. Furthermore, according to a report by the Ponemon Institute, businesses that automate their offboarding process have seen a 30% decrease in the occurrence of data breaches related to former employees. These statistics underscore the significant benefits of automating the IT offboarding process.

Enhance Security

It’s easy for former employees to take sensitive company information with them if their offboarding process isn’t done correctly. Automating the process ensures that all data and system access is removed, reducing the chances of sensitive information being accessed or shared without authorization.

Automation significantly reduces the risk associated with human error in the offboarding process. According to a report by Symantec, human error accounted for 27% of data breaches in 2019. Automating your IT offboarding process can prevent such lapses by ensuring that each step is performed accurately and consistently. In fact, a study conducted by Ipsos found that organizations that have automated their offboarding process reported a 60% decrease in data breaches related to former employees. Such statistics underscore the importance of automation in maintaining data security during the offboarding process.

Ensure Compliance

Various regulations and compliance requirements mandate proper offboarding of employees. Manual processes can be error-prone, leading to violations of compliance policies. By automating the offboarding process, organizations can more easily achieve compliance and avoid penalties.

For instance, according to a report by the Ponemon Institute, non-compliance costs 2.71 times the cost of maintaining or meeting compliance requirements. This statistic clearly illustrates the financial implications of non-adherence to compliance policies during the offboarding process. Moreover, a study conducted by Osterman Research found that 67% of organizations have suffered a data breach as a result of employees having inappropriate access to company data, underlining the compliance issues associated with improper offboarding. By automating the offboarding process, companies can significantly reduce such risks. Indeed, a survey by ITProPortal revealed that 75% of IT professionals believe that automation significantly reduces compliance risks during offboarding.

In Conclusion

Offboarding processes can be burdensome on HR and IT departments, but automation can make it a lot easier and more efficient. By streamlining the process, automating can save time, reduce risk, simplify the process, enhance security, and ensure compliance. Don’t be daunted by the seemingly complex IT offboarding process. With the help of automation, you can streamline the process and enjoy a more efficient HR system while at the same time being confident that your compliance requirements are always being ticked off.

Six Steps to Successful Employee Offboarding

When an employee leaves a company, offboarding is the process of ensuring that they have a smooth and secure transition from their current role to their next one. This includes tasks such as ensuring that all their accounts are closed and transferred, returning all devices and that the former employee can proceed easily to their new job.  

Employee off-boarding is critical not just for securing company data, but also for maintaining a safe workplace. A recent study has shown that about 89% of employees still had access to their company’s network and data after termination and around 83% continued to access their old employer’s accounts. With insider cyber-attacks rising by 44% over the past two years, it is more critical than ever to properly off-board employees after they leave your company. 

Here are some of the key steps involved in successfully offboarding an employee along with some of the best practices for making the process smoother.  

1. Disable all accounts and change passwords

One of the first steps in offboarding an employee is to disable their user accounts and change any passwords they may have had access to. This helps to ensure that the former employee does not have any access to company data or systems. Additionally, it is important to update any additional identity security measures such as multi-factor authentication that the employee may have been using. 

2. Collect company-owned devices

The next step is to collect any company property that the employee may have, such as phones, laptops, keys, or ID badges. It is important to do this as soon as possible so that the employee does not have access to company resources. Additionally, you should check with the employee to make sure that they have not taken any confidential information with them. If an employee is working remotely, you will need to arrange for someone to collect their devices from them or have the employee ship their devices back. 

3. Securely erase company devices

Either remotely or when the company devices are returned, securely erase the information on those devices. This will ensure that any company data on the devices cannot be accessed by the former employee. Once this is done you can prepare the devices for use by a new employee.

4. Contact Third-Parties

You should also notify any customers, partners or vendors, with whom the employee worked and provide them with the new contact information for your company. This will ensure that there are no potential information issues and that third-parties are able to continue working with your company without interruption.

5. Update your company’s HR records

Finally, you will need to update your company’s HR records to reflect the employee’s departure. This includes removing them from any health insurance or other benefits they may have been receiving. You will also need to update their contact information and emergency contact information. Once this is done, you can send out a farewell message to current employees. Additionally, by keeping open communication with the departing employee, you can help to make the transition as easy as possible for them. 

6. Follow cyber-compliance policies

When offboarding an employee, it is important to make certain you are operating within compliance of any relevant cyber-security regulations. For example, the National Institute of Standards and Technology Cyber Security Framework (NIST CSF) requires companies to take specific measures when deleting employee data. Additionally, ISO 27001 is a standard for information security management and requires companies to have a plan for terminating employees. The Health Insurance Portability and Accountability Act (HIPAA) requires companies to protect the privacy of employee health information. By following all applicable regulations, you can help to ensure that your company complies when offboarding employees. 

You can make sure that your company’s offboarding procedure is effective and safe by following these procedures. Whether an employee leaves your company by their choice or yours, offboarding them as quickly and efficiently as possible is key to limiting any exposure of your business to a disgruntled former employee. By following these tips, you can minimize the amount of time they have access to your IT systems and ensure that they depart on good terms. If you have any questions about how to execute these tips or would like help with offboarding your employees, feel free to reach out to us at sales@montra.io.