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Respect her notice and let her go. She probably already did a looooot of thinking and considering before making this decision so don’t add pressure/guilt to her situation especially bc she is leaving to focus on herself and her family. Wish her well and let her know she is appreciated, praise her work, and assure her that she is leaving on good terms and would be welcomed back.
Ask her to document her knowledge in case you can’t bring on a FT person before she goes. In the meantime focus on hiring to get the candidates in interviews asap so you can get someone on board. If that really does take to long, hire a contractor who you can convert to FTE if they do a good job. It’s great to use contractors but without long term possibility that means you will be doing knowledge transfer again and again in short periods of time.
You can give her option of going on mat leave and returning with full support from the team. I’m not sure which country you’re in but in Canada they get about 12-18 months and US they get 3-4 months. You could chalk out a solution with HR and her if you would like her to return. Otherwise you can hire somebody before she leaves and have an overlap period where she could train them
12-18m?! holy… might as well hire someone else lol
Can you add a freelance budget for consulting hours? Bring her in the fold 5 - 10hrs a week after 3 - 6 months of being off.