Exit interviews: why they are crucial and how to conduct one

The skills shortage continues to make life difficult for businesses across the country. In fact, 2011 will be the year that many employers are predicted to lose staff to their competitors. But employers able to ascertain why staff leave may be able to retain their top talent by cultivating change within their organisation.

One of the most effective ways to do this is by conducting an exit interview with departing staff, which can provide some clues as to what can be done to ensure staff stay with your business.

A whitepaper by OneTest, an Australian company that develops online survey platforms (including exit interviews) found that people don’t usually leave an organisation for one single reason – most people leave because a number of thoughts, feelings and events develop over time.

Because of this, asking a person ‘why did you leave’ tends to result in one of two answers: a complete history of their time in the organisation, including every problem or issue they ever had, or more commonly, a simplistic and trite response such as ‘better pay’. The paper points out that neither of these answers is very helpful.

But an effective exit interview can narrow down their reasons for leaving.

The statistics

Research by The Interview Group found that in Australia and New Zealand, 92% of organisations conduct exit interviews in some form. However, most feel they struggle with the process, with just 15% of organisations agreeing or strongly agreeing that they receive maximum value from the process.

Most organisations (79%) still use the old-fashioned approach of a face-to-face meeting between the HR person and the departing employee. The other three methods are paper forms, online surveys and phone interviews.

Lenore Lambert, director, The Interview Group, which gathers retention intelligence for employers, says all companies should conduct exit interviews with all departing staff.

“Gather lots of information. It’s your last chance to ask for it. Think about what you’d like to report on,” she says.

Christine Khor, director of sales and marketing recruitment specialist firm, Carrera Partners, says the objective of an exit interview should be to gain information regarding the real working environment.

“You want to increase staff satisfaction, increase staff tenure and as a result, increase productivity and profit.”

Khor says it’s important that exit interviews don’t simply become a standard procedure that isn’t sufficiently analysed. She says that if a company has a board of management, they need to be supportive of the interview and the outcomes.

“It’s essential that the business takes a real interest in the results. The real use of an interview is in the execution of the results.”

The first step

Firstly, make sure that staff understand you plan to ask questions to ultimately make improvements to the conditions within your workplace.

Ilan Rimer, director of interview skills training organisation, My Interview, says companies should explain the confidential nature of the exit interview process clearly. Make it clear that their feedback, however positive or negative, is valuable and highly appreciated.

“Tell the employee during the exit interview that you intend to follow up on their suggestions and don’t get defensive in response to any of the answers given,” he says.

Rimer says some employees may feel there is nothing for them to gain by granting an exit interview. Some could even worry that they may burn bridges.

“The reality is that companies relish the opportunity to receive some brutal honesty, as they rarely receive such lucid, risk-free feedback from a current employee. As such, not only does the employee get one last chance to make their voice heard, which can be cathartic for many, but the employee can potentially strengthen ties with the organisation by giving valuable feedback,” Rimer says.

How to conduct an exit interview

Robyn Smith, director of people and culture for HR outsourcing and recruitment company Chandler Macleod, says the exit interview should be arranged by the organisation and not the departing employee.

“The employee should also be given time to prepare and the interview should take place well before the employee’s last day. This provides an opportunity to reflect and review and potentially resolve issues, allowing both parties to separate on good terms. You never know when you might want to work together again.”

Smith also says it’s important to be sure the employee is treated with respect and dignity throughout the interview process and to reassure them that issues raised will be used effectively for the benefit of the employee’s colleagues.

Rimer agrees. “The employee should feel completely free to express their opinion without any fear of recrimination or bridge burning. Therefore, choose a setting that is as casual and relaxed as possible.”

Rimer says employers should use the exit interview process to find out:

• The two main reasons why the employee is leaving.
• Steps the organisation could have taken, in hindsight, to keep the employee.
• Workplace morale.
• What the employee liked about the company.
• What the employee would change about the company if they could.
• Information on how to maintain a good relationship with a departing employee.