Practice Management

This month’s article was provided by The Coker Group, an SMA approved partner.

October 2007

  • Exit Interviews: Why Conduct Them?

    By Kay Stanley, Associate Partner

    Managers and others charged with personnel and human resources responsibilities may neglect to conduct exit interviews on a regular basis.  Reasons vary.  In some cases, it’s because the circumstances for separation are unpleasant.  In others, it can be awkward for any number of reasons.  However, Human Resource professionals will testify that it’s well worth the time and trouble it takes to conduct the employee exit interview because of the valuable information that can be obtained.  By gaining an understanding of why people may be leaving (or have left)--what they liked and did not like--companies are able to improve management/employment practices accordingly.

    Exit Interviews provide the opportunity to:

    • Promote positive PR with departing employees, who often enjoy the opportunity to just be listened to, and appreciate their voice being heard.
    • Receive valuable feedback from departing employees about compensation, working conditions, management, and culture.
    • Dive deeper into areas of the departing employee’s most serious concerns, and conversely reveal details of what they enjoyed most.

    Following are some pointers to keep in mind in making the most of these meetings.

    1. Use a form to conduct an exit interview. This will help you to stay on task and ensure that you get the information that you need to obtain. This can be done by asking questions or by presenting a form to the departing employee.
    2. Some people are reluctant to fill out a form, especially if they “have had it up their eyeballs” for whatever reason and quit. Most people want assurances of confidentiality. If there is a lack of trust of the interviewer, it is unlikely that the full picture will be received.
    3. An exit interview helps pinpoint any areas that need attention and perhaps prevent further resignations. For example, one HR professional learned through an exit interview that a male employee manager was harassing the females in his department. He was telling dirty jokes and making very inappropriate comments. When one woman turned in her resignation, the HR manager learned of the harassment problem during the exit interview. The company was able to keep her from leaving the company, and the manager actually was terminated. That went a long way toward showing the other employees that the company was serious about not tolerating harassment. Managers could not get away with inappropriate behavior. It also let employees know to “say something” if something is wrong!
    4. Exit interviews also help to pinpoint salary areas that need improving or benefits that are not competitive. Often, good employees change jobs to improve compensation and benefits—sometimes the increases are more minor than you might think!
    5. An exit interview gives an opportunity to verify the employee’s current mailing address and to let them know the importance of providing a new address if they relocate. After termination of employment, the company will be mailing various communications and paperwork, such as their W2 form, information about COBRA, and information about distribution of their 401(k) plan, and company policies on providing references.

    It is important to keep the conversation on a professional plane yet to be open and concerned.  The interviewer should be capable of listening and learning to the extent that he or she can sift through the emotions to gather facts that will benefit the company, the exiting employee, and those who remain on the job.  Input can help pinpoint potential action opportunities that can encourage reduction in turnover rates and improve employee morale.

    In summary, a well-orchestrated plan for conducting exit interviews, along with other HR initiatives related to maximizing employee attitudes and behavior, has the potential to become a valuable tool to help reduce turnover and increase employee satisfaction and commitment.  Effective reduction in turnover has clear economic and organizational benefits that can be worth the investment in time.

     

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