After the Death of an Employee: Professionally Handling Awkward Situations

Some employee-related topics are more difficult to discuss than others, and certainly the death of an employee can be one of those. And, as described in my previous HRTools.com Insight, handling this responsibility is one of the toughest jobs any business owner or manager faces. 

In the previous post, I touched on more of the emotional elements or aspects related to handling an employee’s death; some of which are less obvious than others, so you may want to add it to your reading list, as well.   

This Insight touches on more of the practical or mechanical considerations when a business experiences the death of an employee. 

First of all, as they say, and not to sound cold, business must go on. After the death of an employee, an employer or manager will have to start reassigning the late employee’s work to other staff members, or perhaps a temporary employee can be brought in until a permanent replacement can be found. 

This is where a succession plan comes in, especially to replace executive positions. Even if a formal plan has not been created, smart business owners should have a contingent plan in place, even if only for an interim period. 

Another necessary duty in the event of a death is to provide records of beneficiary designations and work with insurance companies or third-party administrators to locate the deceased employee’s beneficiary designees for all the benefits. 

A business may also be required to process and handle any final payouts; and to do so according to the respective state’s laws and regulations. In addition, you will need to follow the normal termination procedures for terminating health insurance coverage and addressing areas such as returning company property, which may include a car, credit cards, cell phones, etc. 

In some respects, you can follow the same basic procedures for almost every situation. 

In closing out this topic, I’ll share the following experience to help illustrate how planning ahead will help in most instances; and in other instances, you simply have to know how to remain professional, calm and flexible. 

Previously I worked with an organization, and I was involved with the employee death notification process, as well as handling the life insurance administration and retirement plans benefits areas. 

During that period, one of the long-term employees, who had worked with the organization for almost 30 years, suddenly died. Everyone within the organization knew this employee, and many had even worked for this individual. 

Because of my role in HR, I stepped in and assisted with notifying the deceased manager’s department personnel, as well as other managers of other departments. Employees were given time off to attend the funeral. 

We also made sure the employee assistance program (EAP) resources were offered to all the employees, and we brought in onsite counselors, as well. Many employees took advantage of these supportive measures and resources. 

The company executives also met with and spoke to the employees, and they were reassured of their job security. All in all, this company and its people responded to this employee’s death in ways that set the tone for showing respect and sympathy. 

But sometimes you could run into situations where you must demonstrate flexibility and be ready to handle them at your professional best. 

In this case, we found that the most difficult part was handling the process related to the deceased employee’s beneficiaries. The employee had listed three children as equally entitled to life insurance and retirement benefits. 

This process was made more difficult, because the children’s relationships with one another were obviously strained and almost hostile. In fact, they wouldn’t even speak with one another, so after the initial meeting, we had to bring them in separately to sign the documents, as well as when they came back for their beneficiary checks. It was, to say the least, an awkward time, because it was difficult to ignore the extreme tension when they were all together. 

My point in describing the above is this: Even though some may never face this situation, businesses must be prepared to deal with these matters, and in as professional and sensitive a manner as possible. 

This example also serves to help point out how having a plan in place can help a business better cope and manage the stressful times and uncertainties that you can count on to happen after the death of an employee.

Businesses must be prepared to deal with the death of an employee, and in as professional and sensitive a manner as possible.