Dealing with employee turnover is part of running a business – it is a natural aspect of the employee life cycle. However, high levels of turnover are undesirable as companies find that losing people in critical roles is both costly and disruptive.
Statistics don’t lie – nearly 4.5 million people quit their jobs in August 2019, leading to tens of thousands of dollars in lost employee costs. This is what companies spend on hiring, training, engaging those employees while also accounting for the errors and cultural impact they’ve left behind.
The fact of the matter is that businesses need to study and understand turnover and find ways to mitigate its impact on the organization at large.
That’s why they conduct exit interviews.
What Is The Exit Interview And How It Helps?
The exit interview is when the HR holds a meeting with the departing employee to get some sincere feedback about their time with the company.
Typically, these meetings can explain the employee’s needs during service and their perception of their experience while at the job – the right interviewers may even be able to gain valuable intel on their new employers.
These exit studies are beneficial for the organization in more ways than one, here’s how they can help you:
Find Reasons Behind Employee Turnover
The exit interview acts as a survey to help discover the weak areas in an organization. HR gains valuable insights regarding employee turnover and uses this info to formulate strategies that help reduce it.
Point Out Implicit Problems
The interview also helps HR understand the not-so-obvious issues that are rampant within an organization. For instance, they get feedback regarding hierarchical problems like managers putting undue pressure on their subordinates. Once they have a clear view of these problems, management can then take action to rectify them.
Identify Gaps In Training
Around 80% of Americans agree there is a skill gap in local workplaces and it affects 35% of them personally. Interviews with departing employees can also help identify gaps in the training. This information can be used to update existing training materials and incorporate new modules that address these gaps.
Discover Problems With Organization Culture
When a departing employee attends the interview, they can be more open about the problems they were afraid to discuss when they were employed. They no longer fear reprisal and HR can get a more candid response from them.
The HR department can then investigate potential complications with organizational culture, harassment, discrimination and other issues that come up during the interview.
Get Insights Into Industry Salary, Compensation & Benefit Packages
An employer can learn about the salary, compensation and benefits package that prompt employees to leave. This can help the organization realign these with the industry average and remain competitive in the job market.
Conclusion: An Exit Interview Should Be Mandatory
Exit interviews allow the HR department to improve company policies and make changes that will benefit the company in the long run. They should be compulsory because businesses cannot afford to miss out on the data gained from these interviews.
These exit studies can be conducted in person, on the phone or via web surveys – it all depends on the budget and scale of the business. However, the HR specialists at CFR Group recommend more personal and in-depth options because these yield better quality data.
Also, make sure that you don’t have a manager taking these interviews because that could hamper the efficacy of the entire process. Instead, use a reputable third-party service to conduct exit surveys. Get in touch with the CFR Group to find out how they can help you.