After the Horse has Bolted: The Exit Interview

There is some debate about who should conduct exit interviews. Whilst some commentators advocate the use of independent specialists, others argue that the employee’s line manager should carry out the interview. However, this may not be appropriate in every case, particularly where workplace relations have broken down or there are concerns about a particular manager’s capability. For these reasons, other observers suggest that HR practitioners should take responsibility for conducting exit interviews, as they are more likely to have experience of dealing with conflict and/or sensitive employee relations issues. As an alternative, some employers allow the exiting employee to select who they want to conduct their exit interview.

Pros and Cons of Exit Interviews

Exit interviews have a number of benefits for both employers and employees, but they are not without their disadvantages. The pros and cons of exit interviews for both parties are outlined in the following diagram:

Conducting the Exit Interview

Asking the right questions is the key to obtaining insightful feedback rather than superficial responses. Baumruk advocates investigating seven key areas in the exit interview.[1] These can be tailored depending on the organization, the employee’s role and the circumstances of the resignation:

1. Compensation: Was the employee fairly paid for the role? Were they recognized for their work? Were non-financial benefits satisfactory?
2. Working environment: Was the working environment pleasant? Could any suggestions be offered for improvement?
3. Relationships: What were the employee’s internal and external relationships like? Did they get on with colleagues, their line manager, senior managers, customers and suppliers?
4. Opportunities: Were there opportunities for training and career development? How well were the employee’s development needs assessed? What training did the employee find most helpful?
5. Culture: Did the employee feel part of the organization’s culture? How would they describe the employer’s culture or ‘feel’?
6. Job description: Did the role live up to the employee’s expectations? Was the job accurately described?
7. Leadership: Did the employee understand the goals of the organization? Did the employee have trust and confidence in the organization’s leadership?

An Exit Interview Policy

Many employers find it helpful to adopt a policy approach to exit interviews. A good policy should summarize the aims of the exit interview process, how interviews will be conducted and how the results will be used:

• The aims of the exit interview process: This might be to help the employer identify the reason(s) why employees are choosing to leave, to enable the recognition of problem areas so that appropriate action can be taken to reduce turnover.
• Who the policy applies to: Will the policy apply to voluntary leavers only, or will it apply to all types of leavers e.g. including those taking early retirement or voluntary severance? Will incentives be offered to improve participation e.g. gift vouchers?
• When exit interviews will be carried out: Will the interviews be conducted before or after the employee has left?
• Who has responsibility for conducting exit interviews: Will the interviews be carried out by line managers, HR representatives or external specialists? Will the organization allow the employee to choose their interviewer, and/or allow a companion to accompany the employee?
• How the interview will be conducted: Will the interviews be carried out on a face-to-face basis, by telephone, or via an online or paper based questionnaire?
• How format of the interview: Where will exit interviews be held and what areas are likely to be discussed e.g. workplace relationships, level of compensation and company culture?
• How the information will be analyzed: Will feedback be incorporated into a quarterly or annual report? How will the gathered information be analyzed to identify trends and patterns? For example data could be analyzed by region, department and line manager(s). Will the HR department or an external provider conduct the data analysis?
• How the findings will be used: Will the exit information be used in isolation, or as part of a wider retention strategy? Who will have responsibility for acting on the findings? How will the effectiveness of the exit policy be reviewed and by whom?

Using the Findings of Exit Interviews

Although 95% of employers conduct exit interviews, only 30% use the results.[2] Data gathered from exit interviews can pinpoint significant trends within an organization’s exit profile, and is the first step in developing a strategic approach to retention. Key trends may include:

• Which posts are most at risk of people leaving?
• What are the reasons people leave different areas?
• Which business areas or departments have the highest turnover?
• Are particular groups leaving e.g. women or ethnic groups?
• Do resignations occur at specific times e.g. seasonal variations?
• Are new recruits leaving after a short time?

Exit interview data should be collated and analyzed, perhaps on a 6-monthly or annual basis, to identify the issues which give rise for concern. These areas should then be prioritized, and action taken to make improvements where possible. Specific action might include introducing flexible working opportunities, improving induction procedures, providing more opportunities for career development and coaching line managers to improve communication and feedback.

A Continuous Improvement Culture

Continuous improvement can be achieved by a commitment to regular evaluation of the effectiveness of exit interviews, and an assessment of whether targeted improvements are having a positive impact on turnover rates. Exit interviews should not be viewed as a stand-alone tool, but rather as part of a wider strategic approach which informs the evaluation of organizational procedures and practices, to identify areas for improvement. Investment in an effective exit interview process will reap clear benefits in terms of greater employee engagement and reduced turnover in the longer term.