Reassigning an account to a former member

I'd like to better understand the option to "reassign an account to a former member" when deleting a member's community account. Specifically:

  1. Will all of the account data be completely anonymized with NO personal data at all retained?
  2. Will any kind of profile page or history of the user still exist?

The use case I have in mind is former employees. We are considering what to do with departed employee accounts, and would like to understand all options before making a decision. Because many of our employees are based in Europe, user privacy is a major consideration here. We are willing to reassign ex-employee accounts to former members (instead of deleting the account entirely) IF and only if the user data is completely anonymized. Please advise.