When an employee decides to leave your company, don't just end it with thanking him for his service, conduct an exit interview as well.
You see, when employees have made a decision to leave, they often feel more comfortable giving their opinions about company practices, recruitment, supervision, pay, benefits, office culture, growth opportunities and other aspects of your company.
Basically, the information you get from exit interviews can be used to improve employee retention or reduce employee turnover with both immediate and long-term effects.
Immediate effects include reducing costs of replacement, saving time and improving organisational performance, all of which contribute to the long-term effect of improving profitability and returns to your stakeholders, the Practical Guide to Human Resources Management explains.
And that means exit interviews will help you to do the following:
Five benefits of conducting exit interviews
#1: Save time. Unnecessary time spent dealing with replacing and re-training is reduced, as well as the flow-on effect of time spent recreating the corporate culture, patching up the dynamics of the team and redistributing the workload left by your departing employee.
#2: Determine the real reasons for people leaving. Exit interviews are a useful diagnostic tool for uncovering underlying hidden agendas and may contribute to reversing your employee's decision if appropriate.
#3: Minimise the risk of litigation. It's important to ensure that all possible processes have been covered in the termination process to minimise any risk of future litigation by your departing employee.
#4: Collect key information for the job description. The person who has hands-on experience can be the best source of information for improving and clarifying the job description and required skills and capabilities.
This improved understanding will in turn contribute to reducing future employee turnover and improving induction and succession planning.
#5: Identify and manage trends and underlying company issues. Exit interviews are an excellent way to identify underlying company issues which may be the cause of high employee turnover and then manage the outcomes, for example if there's hidden political turmoil or conflict, sexual harassment or intimidation.
There you have it. Conducting exit interviews will help you reduce employee turnover and increase productivity in your company.