Exit interviews are a powerful method of gathering important information, yet they are often underutilised by many employers. When an employee decides to leave, it’s easy to just let them go on their merry way and move on, after all why invest more time and resource in someone who isn’t a future part of your business? However, taking the time to conduct a thoughtful and thorough exit interview can provide invaluable insights that can help improve how your business operates, employee satisfaction, and retention rates. So what are the benefits of exit interviews and why should they be a key part of your HR strategy?
Employee Turnover
High rates of employee turnover can be incredibly damaging to a business. On a purely financial level employee turnover costs you money. Deloitte estimate that losing an employee will cost a business between 1.5 – 2 times that employee’s annual salary. Exit interviews are extremely beneficial as they help businesses to gain a deeper understanding of the reasons why employees are leaving in the first place. By understanding the root causes, measures can be put in place to mitigate issues. There can be a myriad of reasons why employees leave but typically it is due to better opportunities elsewhere, dissatisfaction with their roles, low salary or issues with management and colleagues. Getting an understanding of these reasons will then mean that a business wide view can be taken to determine if there are specific patterns for leavers and then informed strategic action can be taken to address any problems.
Employee Satisfaction
Feedback from exit interviews can help you to identify a range of issues that may need improvement. For example, if numerous employees talk about a lack of career progression as a reason for leaving during their exit interviews, then you might want to think about putting in place a more robust training and development plan that is backed up by a supporting budget and gives employees a clear career pathway. By addressing such concerns, you can improve overall employee satisfaction, create a more positive work environment and in doing so reduce employee turnover.
Recruitment Processes
Exit interviews can also provide insights into your recruitment process. If leavers frequently mention that their roles did not match their expectations, then you need to re-evaluate your job descriptions and recruitment practices. As an employer you should ensure that through the recruitment process, candidates have a clear understanding of what would be expected of them, what the role really involves on a day to day basis and what it is like to work for you. If expectations are realistic and the job meets those expectations then employees starting and then leaving quickly will reduce significantly.
Company Culture
Understanding the reasons behind employee departures can help you strengthen your company culture. Exit interviews can highlight issues related to teamwork, communication, and even how staff are managed. Addressing these issues can lead to a more cohesive and motivated workforce and a better company culture, which is essential for long-term success.
Legal Risks
By carrying out exit interviews you can also help reduce legal risks to your company. When employees leave, there may be underlying issues that, if left unaddressed, could lead to them or others attempting to bring claims against you. Exit interviews provide an opportunity for leavers to express any issues and if these issues are a cause for genuine concern then you can take steps to mitigate the potential risk.
Employer Brand
When a company is known for listening to its employees and making changes and improvements based on their feedback it is likely to build a positive employer brand. Prospective candidates are more likely to be drawn to a company that values employee input and is committed to continuous improvement. Leavers who feel that they have been treated well and given a chance to have their say via an exit interview are also unlikely to bad mouth an employer. In fact they can even become ambassadors for you by leaving positive reviews about their employee experience on sites like Indeed and Glassdoor.
How to Conduct Effective Exit Interviews
In order to maximise the benefits of exit interviews, it’s essential to conduct them effectively. Here’s some basic steps to follow:
- Confidentiality: Employees should feel safe to provide honest feedback without fear of repercussions. Make sure that exit interviews take place in a private environment where staff will feel comfortable talking.
- Structured Format: Prepare a standard set of questions for your exit interviews to ensure consistency and also give the leaver a chance to say anything else that is on their mind.
- Listening: Pay close attention to what the leaver is saying and ask questions to gather further information when necessary, you might need it to pick up on issues and take further action later on.
- Notes: Keep detailed records of the feedback provided during exit interviews, doing nothing with the information gathered makes the process pointless. Make sure that exit interviews information is collated centrally and that it is assessed to try and identify any patterns or trends.
- Follow Up: Use the insights gained at exit interviews to make meaningful changes and communicate what those changes are to your remaining staff so that they see the value in providing feedback.
Investing time in exit interviews is not just about saying goodbye to someone and going through the motions of a tick box exercise. If they are done well then exit interviews can help you and your business to learn, grow, and continuously improve.
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Why not also check out our blog on a similar topic A Guide To Staff Retention
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