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An exit interview is a survey conducted with an individual who is separating from an organization or relationship. Most commonly, this occurs between an employee and an organization, a student and an educational institution, or a member and an association. An organization can use the information gained from an exit interview to assess what should be improved, changed, or remain intact. More so, an organization can use the results from exit interviews to reduce employee, student, or member turnover and increase productivity and engagement, thus reducing the high costs associated with turnover. Some examples of the value of conducting exit interviews include shortening the recruiting and hiring process, reducing absenteeism, improving innovation, sustaining performance, and reducing possible litigation if issues mentioned in the exit interview are addressed.
The exit interview fits into the separation stage of the employee life cycle (ELC). This stage, the last one of the ELC, spans from the moment an employee becomes disengaged until his or her departure from the organization. This is the key time that an exit interview should be administered because the employee's feelings regarding his or her departure are fresh in mind. An off-boarding process allows both the employer and employee to properly close the existing relationship so that company materials are collected, administrative forms are completed, knowledge base and projects are transferred or documented, feedback and insights are gathered through exit interviews, and any loose ends are resolved.
Exit interviews in business are focused on employees that are leaving a company or when employees have completed a significant project. The purpose of this exit interview is to gain feedback from employees in order to improve aspects of the organization, better retain employees, and reduce turnover. During this interview employees will be asked why they are leaving, what specifically influenced their decision to leave, whether or not they are going to another company and what that company they are going to offers that their current company does not. Businesses can use this information to better align their HR strategy with what employees look for in an organization and enact programs and practices that will influence top talent to stay at the organization.
In the past, exit interview data was being collected by the organization but not much was being done in terms of interpreting the data and making it actionable. Today there are metrics, analytics, benchmarks, and best practices that help organizations make sense of and use the data towards proactive organizational retention programs. Recently an array of exit interview software has been developed and popularized. However this method of conducting Exit Interviews has some significant flaws, most notably, that it identifies the wrong drivers of staff turnover.
Common questions include reasons for leaving, job satisfaction, frustrations, and feedback concerning company policies or procedures. Questions may relate to the work environment, supervisors, compensation, the work itself, and the company culture.
Examples:
How satisfied were you with your role and responsibilities? Did you feel adequately supported in your professional growth and development? Were there any challenges or areas of dissatisfaction? If yes, please elaborate. Did you feel a sense of belonging within the team and organization? Were there any aspects of the working environment that negatively affected your experience? How would you rate the work environment and culture? How would you describe the effectiveness of your immediate supervisor? Did you receive sufficient feedback and recognition for your work? Were your goals and expectations aligned with the organization’s vision? Were there any communication gaps or challenges within the team or organization? Did you have ample opportunities for collaboration and cross-functional interaction? How would you rate the company’s communication and feedback mechanisms? Did you find the company’s policies and procedures fair and equitable? Were there any policies or practices that you felt were hindering productivity or employee satisfaction? How would you rate the organization’s support for maintaining a healthy work-life balance? Were you able to manage personal commitments alongside your work responsibilities? Were you satisfied with your salary and benefits package? Did the organization provide fair recognition and rewards for your contributions? [1] Exit interviews play a pivotal role in understanding the dynamics of employee turnover and enhancing organizational success.By asking the right questions and effectively interpreting the data, organizations can make informed decisions to improve workplace culture, boost employee satisfaction, and drive long-term success.
Exit interview participation rates vary depending on the method used to conduct the exit interviews. Passive methods of data collection such as online or paper surveys have the lowest participation rates of around 30%. Involving a human being in the process increases the average participation rate to 50%. Outsourcing the exit interview process, while a relatively recent development, achieves the highest participation rates of 90% or more.
Completion rates often vary according to employee type with white collar employees generally having higher completion rates than blue collar employees or field based workers or others who are not office based (e.g. on mining sites, in hospitals). However, there are some exceptions to this.
Among active exit interview practices (conducted by human beings), participation rates are also affected by who it is that does the interviewing. If the direct manager of the departing employee conducts the interview, only 26% of organisations achieve completion rates of 90% or more. If junior or administrative Human Resources staff conduct the interview, only 31% achieve completion rates of over 90%. Outsourced consultants, HR Managers (or equivalent HR professionals), and indirect managers achieve higher participation.
Exit interviews in education are conducted with students who have graduated from an educational institution. These interviews are meant to gather information about students' experience while attending that institution, what they benefited from, what was missing, and what could be improved to enhance the experience of the next generation of students who attend that institution. This type of interview can also point to areas in which the institution should invest more or less resources to enhance a student's learning and development experience.
A less common practice is conducting Exit Interviews with high value or long term customers, for example customers of aged care facilities.
Exit interviews in associations are administered to members who decide to end membership with an association. These interviews provide feedback to an association regarding what caused the member to leave, what can be improved, and how resources can better be allocated.[ citation needed ]
During elections, pollsters may conduct random exit polls.
There are various methods of conducting exit interviews, each with their benefits and disadvantages.
Historically, this has been the primary method for conducting Exit Interviews (79% of organisations), although this is changing rapidly. These face to face meetings are usually conducted internally by a human resources professional or manager, or in rare cases, by an external consultant.
Benefits: The main benefit of this method is that completion rates tend to be high, as long as the interview is conducted by a relevant and suitably skilled professional (external consultant, HR professional or indirect manager). In addition, departing employees have a personal experience which may cause them to speak more positively about the company (affecting their 'employer brand') after they leave. Also, if Interviewers are well trained, the content can be well structured and checked in real time to ensure accuracy of data, especially concerning reasons for leaving. This method also allows high quality data to be collected from people whose literacy skills are not good.
Disadvantages: The disadvantages of this method are that the feedback is rarely captured in a way that allows reporting on trends with more than a third of organisations using this method having no reporting tool attached to their exit data. If conducted by an external consultant, this method can be expensive. It's also sometimes the case that the human resources professional who might conduct the interview, could be part of the employee's reason for leaving (e.g. I was overlooked in the pay review while on parental leave and my HR person wouldn't return my calls). This would mean that the employee is unlikely to be honest if that HR professional was conducting the exit interview. Unfortunately very few organisations (20%) provide any training on exit interviewing so the quality is often highly variable. In addition, this method is the most expensive if outsourced.
Telephone interviews
Exit Interviews conducted by telephone are becoming more common (41% of organisations) and are the most effective method of Exit Interviews.
Benefits: Feedback is easy to capture and code in a form that allows easy reporting and analysis. Because the Interviewer's visual attention does not need to be dedicated to the person in front of them, as it does in a face to face interview, they are able to capture and code feedback in real time. Completion rates are the highest of all methods, possibly due to there being no need for the Interviewer and Interviewee to be in the same physical place, but also because the interview can be conducted even after the person has left (see Timing of Exit Interviews). If Interviewers are well trained, the content can be well structured and checked in real time to ensure accuracy of data, especially concerning reasons for leaving. And as with face to face interviews, the experience for the Interviewee can be very personal. This method is easy to outsource, and is less expensive than face to face interviews. It also allows for high quality data to be collected from people whose literacy skills are not good.
Disadvantages: This method is that it is more expensive than online and paper surveys. Some Human Resources professionals enjoy conducting the interviews, so outsourcing the interviews removes this task.
Exit interviews taken in paper form allows interviews to be conducted with those who do not have Internet access, and allows for the option of anonymity. However, it takes longer to receive feedback, and respondents who are not literate would find it difficult to use this medium. Information must also be entered into a tracking system manually for this medium. As at 2010, 46% of organisations still conducted Exit Interviews using this method.
As at 2010, 38% of organisations used this method for Exit Interviews.
Benefits: This is the least costly method of conducting Exit Interviews, with several free survey software tools available on the market. It also collects data in a way that is easy to report and analyse.
Disadvantages: There are two significant problems with using online surveys for Exit Interviews. The most critical problem is that they identify the wrong drivers of staff turnover [2] Because online surveys do not allow for testing of root cause, the reasons for leaving are not differentiated from issues that caused dissatisfaction but not resignation. In addition there is no ability to ensure that the commentary for each reason for leaving, is consistent with the reason for leaving option they have chosen from a list. The second problem with using online surveys for Exit Interviews is the relatively low completion rate at 34%. This is around half the average completion rate of interviews that are outsourced to external consultants (66%) and around a third of best practice for outsourcing phone interviews (95%).
IVRs are reliable methods of taking exit interviews because they are accessible by phone, a very widespread and reliable technology. However, IVRs have fallen out of favor due to the cost effectiveness of web based options that yield data at similar or higher quality. In comparison to other options, it is difficult to get rich data from an IVR, or to adjust and change it, since any changes require new voice recordings to be made.
The timing of Exit Interviews has a big impact on the completion rate. Organisations that conduct Exit Interviews in the week prior to departure were more likely to achieve completion rates of 80%+ (32% of these organisations). Conducting them too early is less effective with only 19% of companies achieving high completion. Leaving the interview until after the employee has left results in very poor completion rates with only 11% achieving 80% or more.
A performance appraisal, also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal, sometimes shortened to "PA", is a periodic and systematic process whereby the job performance of an employee is documented and evaluated. This is done after employees are trained about work and settle into their jobs. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.
A payroll is a list of employees of a company who are entitled to receive compensation as well as other work benefits, as well as the amounts that each should obtain. Along with the amounts that each employee should receive for time worked or tasks performed, payroll can also refer to a company's records of payments that were previously made to employees, including salaries and wages, bonuses, and withheld taxes, or the company's department that deals with compensation. A company may handle all aspects of the payroll process in-house or can outsource aspects to a payroll processing company.
Staffing is the process of finding the right worker with appropriate qualifications or experience and recruiting them to fill a job position or role. Through this process, organizations acquire, deploy, and retain a workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness. In management, staffing is an operation of recruiting the employees by evaluating their skills and knowledge before offering them specific job roles accordingly.
Recruitment is the overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs within an organization. Recruitment also is the process involved in choosing people for unpaid roles. Managers, human resource generalists, and recruitment specialists may be tasked with carrying out recruitment, but in some cases, public-sector employment, commercial recruitment agencies, or specialist search consultancies such as Executive search in the case of more senior roles, are used to undertake parts of the process. Internet-based recruitment is now widespread, including the use of artificial intelligence (AI).
Human resource management is the strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.
Personnel economics has been defined as "the application of economic and mathematical approaches and econometric and statistical methods to traditional questions in human resources management". It is an area of applied micro labor economics, but there are a few key distinctions. One distinction, not always clearcut, is that studies in personnel economics deal with the personnel management within firms, and thus internal labor markets, while those in labor economics deal with labor markets as such, whether external or internal. In addition, personnel economics deals with issues related to both managerial-supervisory and non-supervisory workers.
Employee engagement is a fundamental concept in the effort to understand and describe, both qualitatively and quantitatively, the nature of the relationship between an organization and its employees. An "engaged employee" is defined as one who is fully absorbed by and enthusiastic about their work and so takes positive action to further the organization's reputation and interests. An engaged employee has a positive attitude towards the organization and its values. In contrast, a disengaged employee may range from someone doing the bare minimum at work, up to an employee who is actively damaging the company's work output and reputation.
In human resources, turnover refers to employees who leave an organization. The turnover rate is the percentage of the total workforce who leave over a certain period. Organizations and wider industries may measure their turnover rate during a fiscal or calendar year.
Automated telephone surveys is a systematic collection a data from demography by making calls automatically to the preset list of respondents at the aim of collecting information and gain feedback via the telephone and the internet. Automated surveys are used for customer research purposes by call centres for customer relationship management and performance management purposes. They are also used for political polling, market research and job satisfaction surveying.
Employee offboarding describes the separation process when an employee leaves a company. The offboarding process might involve a phased transfer of knowledge from the departing employee to a new or existing employee; an exit interview; return of any company property; and various processes from the company's human resources, information technology, or legal functions.
Talent management (TM) is the anticipation of required human capital for an organization and the planning to meet those needs. The field has been growing in significance and gaining interest among practitioners as well as in the scholarly debate over the past 10 years, particularly after McKinsey's 1997 research and the 2001 book on The War for Talent. Although much of the previous research focused on private companies and organizations, TM is now also found in public organizations.
E-HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.
Employee surveys are tools used by organizational leadership to gain feedback on and measure employee engagement, employee morale, and performance. Usually answered anonymously, surveys are also used to gain a holistic picture of employees' feelings on such areas as working conditions, supervisory impact, and motivation that regular channels of communication may not. Surveys are considered effective in this regard provided they are well-designed, effectively administered, have validity, and evoke changes and improvements.
Employee retention is the ability of an organization to retain its employees and ensure sustainability. Employee retention can be represented by a simple statistic. Employee retention is also the strategies employers use to try to retain the employees in their workforce.
Employer brand is branding and marketing the entirety of the employment experience. It describes an employer's reputation as a place to work, and their employee value proposition, as opposed to the more general corporate brand reputation and value proposition to customers. The term was first used in the early 1990s, and has since become widely adopted by the global management community. Minchington describes employer brand as "the image of your organization as a 'great place to work' in the mind of current employees and key stakeholders in the external market. The art and science of employer branding is therefore concerned with the attraction, engagement and retention initiatives targeted at enhancing your company's employer brand."
A competency architecture is a framework or model of predetermined skills or "competencies" used in an educational setting. Competency architectures are a core component of competency-based learning.
Human Resource (HR) metrics are measurements used to determine the value and effectiveness of HR initiatives, typically including such areas as turnover, training, return on human capital, costs of labor, and expenses per employee.
Compensation and benefits (C&B) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. While compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and development. Combined, these are referred to as total rewards. The term "compensation and benefits" refers to the discipline as well as the rewards themselves.
Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
A human resources management system (HRMS) or Human Resources Information System (HRIS) or Human Capital Management (HCM) is a form of Human Resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration, time and attendance, employee performance management, and tracking competency and training records.