There’s a common saying in the business world: “A business is only as good as its people.” So what happens when one of your key employees wants to quit?

Although the resignation of an important team member is not a piece of news any business owner wants to hear, it’s an inevitable part of doing business, and it doesn’t have to be a disaster. If you handle the situation well, you can either retain the employee or ensure a smooth transition when they do leave.

In this tutorial, we’ll look at all the steps you need to take to ensure that things do go smoothly. We’ll cover everything from handling the initial conversation and putting together a counter-offer through to arranging the handover, exit paperwork and exit interview if they do still decide to leave. And, in the final section, we’ll also look at a related issue: what to do when the shoe is on the other foot and you’re the one who wants to fire one of your employees.

By the end of this tutorial, you’ll be clear about how to handle an employee resignation or termination effectively. This is part of a larger series on HR for small business, so we’re talking primarily about how a small business owner can handle the situation. In a larger company, many of the same principles apply, but the situation will probably be handled by different people or departments.