Thanks & Goodbye - Employer handling exit interviews to improve retention

More alarmingly for employers in a competitive market, statistics revealed over half (54%) of employees said they are open to leaving their place of work in the next six months, and one in five (20%) are unlikely to recommend their place of work to a friend or family member.

Many employers rush into offering counteroffers as a panic solution to the problem, when this is far from the solution, as not only does it drive up salaries for the overall industry but it creates a false narrative and a bigger problem internally and externally. Recent LinkedIn Statistics advise 80% of candidates who accept a counter-offer from their current employer end up leaving within 6 months, and 9/10 candidates who accept a counter-offer leave their employer within 12 months.

Counter-offers are high risk and can create a culture where employees feel like they must threaten in order to get a pay rise. This can dramatically impact the workforce and create resentment between other employees and management, also impact financially if not managed.

To improve your employees experience, ironically it begins at the end. The best way to handle a resignation is to conduct an exit interview, gathering crucial data from the employee before they leave. Schedule exit interviews with employees before they leave to gather this information, use this time to research their reasons for leaving and utilise what they share with you to build and implement new strategies that can provide a solution for the problem identified. Don’t be critical, let the employee express their full experience of working for the business. This is an opportunity to pinpoint why people are leaving your business and this vital data can be used to improve your recruitment and retention, as well as contributing to the success of your business.

The process can be conducted face to face, using forms or with an exit strategy survey, enabling employers to identify trends, uncover any conflicts or sore points for low morale and provide a platform to introduce improvements to company culture and management styles. For employees, this will provide a platform to have one last profound conversation with management and give an insight into their overall experience of working for the company.

In an industry that is so people orientated, face to face is always recommended as this will allow an opportunity for the employer to address things directly with the candidate and allow the employee to walk away from the business feeling their feedback is respected and has been taken on board. This is also a good time to advise the employee they are welcome back to the business, if the right opportunity arises that matches their skillset. It’s important that the employee feels this interview is genuinely valued and so leaves feeling like they have been truly ‘heard’ by management.

Organising the interview:

• Schedule a time within working hours when the employee is working their notice period. Do not ask an employee to come in during their own time, this will only further cause upset. This information is essential for your business and should take up to 45 minutes, so make sure to schedule an appropriate time slot.
• Provide the employee with notice so they can prepare and compile any details they wish to present and discuss.
• Always conduct the interview in private to allow for genuine conversation and discussion, not in a public area that staff and customers are frequenting and can see and/or hear.
• Plan questions that will give you the best insight to the daily operations and the company culture that staff members are experiencing – does this match what you are advertising on your website to the wider industry? If not, you have a cultural problem that you need to urgently tend to.

Questions to ask:

• What made you search for another job?
• Would you return to the business? What is your reason for this (either way)?
• Do you feel the job you applied for was the role you stepped into?
• Did you feel you had management support behind you?
• What did you enjoy most about your time here?
• In your opinion, what kind of person should we be seeking to replace you?
• In your opinion, are there any areas you feel we can improve on from an employer’s perspective?
• Is there anything else you would like to add….

Did you know: Only a third of employees complete an exit interview

Given the significance of the importance of this data to the recruitment & retention strategy of a business, all employers should be allocating time to conduct these with leaving employees. This is not an opportunity to ask the employee to reconsider, instead use the information collected to help improve management styles, retain talent and improve the overall performance of the business. By not conducting exit interviews, you are losing valuable information that can help improve employer positioning, branding as well as safeguard your reputation.

Benefits of conducting an exit interview

• The employee walks away feeling their experience has been noted, and most of all valued and learnt from.
• You get an understanding of how this person would discuss your business with other potential employees.
• This is an opportunity for the leaver to highlight potential areas of concern that employers can address.

Exit interviews are an invaluable resource and present an opportunity to hold up a mirror to your company and see what is really happening on the floor, for better or worse! The good and the bad aspects both matter equally when it comes to your ability to attract and retain talent to your business – listen and act accordingly. Take the information obtained and thank the employee for their service and wish them well in their new position.

So, remember: Staff handing in their notice, can leave employers feeling hurt, betrayed and some can take the news personally. It’s important to digest the news and not let ego take over and say something you may later regret, causing a negative perception of the business. Remain professional, wish the candidate well in their position and avoid counter offers. Allow the exit interview to delve into the specifics as to why the employee is leaving and use this information for the better good of your business. They could well be moving for career development and more experience, let the exit interview collect that data.

Final Thought

Exiting employees will provide valuable insight which current workers will be reluctant to share! Gather the evidence, utilise the data and implement a new or improved approach with your learnings. It’s worth noting, exiting employees can also be future employees. Consider the talent pipeline.