Inside information: the value of an exit interview
Staff turnover is one of the most significant HR costs in any business. The direct costs seem obvious but based on a review of 30 case studies in 11 published research papers, it is estimated the cost to replace a worker is one-fifth of an employee’s annual salary.
The indirect costs are less obvious but potentially greater:
- The loss of knowledge and experience,
- Lowered productivity because of the vacant position and the increased workload of other staff taking on added duties and responsibilities, and
- The possible negative impact on staff satisfaction and morale.
This means employers are continually looking for ways to improve recruitment and retention to minimise staff turnover, including:
- Strategic behavioural interviews and assessments at the recruitment stage,
- Continuous training and development programmes,
- Competitive and equitable pay systems,
- Employee benefits,
- Performance incentives and recognition,
- Staff relationship programmes, and
- Succession planning interventions, e.g. mentoring, coaching and job-shadowing.
Knowing what your staff need and want from the employment relationship, and how they think of and compare you to your competitors, is imperative for the quality of your recruitment and retention strategy.
Getting honest input and feedback from the staff who are currently working for you is challenging because of the real concern that any negative comments may jeopardise their chances of promotion, recognition and or rewards within the company.
Gather valuable feedback from exit interviews
Although not without some of the same trepidation - even though specific to securing a future work reference, maintaining friendships and his professional network - interviewing an employee who has already made the decision to leave will almost always produce more balanced honest input.
Conducting a strategically-designed and well-executed exit interview with departing employees can reveal vulnerabilities, deficiencies and threats within your business and industry which can show you where you need to make changes in your organisation.
If this information is to be truly valuable, it needs to be collected over time so allowing you to identify patterns or trends that point to objective, rather than subjective, contexts. The interviews also need to follow a strict professional format and schedule to ensure consistency and integrity in the data collection process.
Cover these 5 topics in your exit interview
1. Reason/s for leaving,
2. Levels of satisfaction or dissatisfaction with various aspects of the employee’s employment experience, including nature of the job, working relationships, management, pay and benefits, policies and procedures, training, recognition, opportunity for growth,
3. Suggestions for change and or improvements,
4. Advice on what skills and qualities are needed in his replacement, and
5. If the opportunity presents itself, and if the company is interested in keeping the employee, negotiate how his decision can be reversed.
To eliminate any confidentiality and anonymity concerns, partner with a third party facilitator, especially if you don’t have a dedicated HR department or objective HR professional.
Whether outsourced to a third party or conducted and managed internally, you can’t overestimate the potential of a successful exit interview to provide valuable inside information to advise and inform on effective recruitment and retention strategies.
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Kay Vittee is the CEO of Quest Staffing Solutions and previously she worked at Absa. Kay is also a superb business leader who inspires her organisation to live the essence of superior customer service. Clients trust her judgement and will continue to include her in driving quality solutions for their businesses. |
