Sunday, March 14, 2010

EXIT INTERVIEW- Purpose, Process and Format

Gone are the days when people use to stick to one job for rest of their life. The trust is lost and the faith is lost as well from both sides. If an employer is having a policy of hire and fire, employees are also free to change their jobs whenever they want. As we need experts to take hiring interviews…we also need experts to take EXIT Interviews. Not everyone can take exit interview.

Purpose While attrition is a natural process for organizations, replacing employees is expensive. The cost goes beyond merely placing an advertisement for the opening in a newspaper. It includes training a new employee, staff time for selecting a new employee, lost productivity while the position is open and lost productivity until the new employee gets up to speed. Understanding why people voluntarily leave the company can provide an opportunity for the firm to make changes to reduce turnover rates -- and reduce the associated costs.

The exit interview serves a number of important functions. When trends in voluntary separations are tracked, the firm may be provided valuable insights on discrimination, training & development, lack of opportunities, concerns relating to benefits & compensation etc.

Conducting the Interview HR managers are a critical part of the separation process. Exit interviews are traditionally conducted by HR staff members with the knowledge and input of the immediate manger of the departing employee. Using HR managers as interviewers, improves the chance employees will open up and provide more valuable feedback. One need to ensure that exit interview is not taken by same department manager or same HR representative of the employee, otherwise employee will not open up or end up with arguments.

There are a number of key issues to keep in mind. The interviewer should always begin the process on a positive note - perhaps by offering a thank you for the employee's service to the organization. And above all, the employee should always be treated with dignity and respect. In some sensitive situations, employees may even be asked how they would like their departure to be handled with peers. It is important for every organization to ensure that all employees leaving the company (especially those leaving for disciplinary reasons or lack of performance) have been provided due process. Every individual must be given the opportunity to have his or her side of the issue heard. It is always important to provide documentation. If the employee has resigned, a letter of resignation should be included with the termination paperwork.

The primary key to an effective exit interview is preparation. The planning becomes an essential component of success in conducting the exit interview. Interviewers should plan out issues to be covered and the questions to be asked. Structured interviews are recommended with the use of questions prepared in advance.

Introspection/ Probing the Reasons Interviewers usually want to determine the real reasons of voluntary separations. This provides an opportunity to make changes - particularly when the separation may also be impacting other people. For example, management is often cited as a common reason people leave the organization. It is good for the company to know the reasons so they can take corrective action.

It is critical to get beyond the "politically correct" reason that the majority of employees provide when leaving a position. The critical portion of the interview should probe the employee for feedback about the working conditions and how they might be improved.

Conclusion With the recognition exit interviews can provide an opportunity for valuable feedback, new approaches are being used. Trends in exit interviews today include outsourcing and automated surveys. Some companies have opted to delegate the exit interview to a third party firm that specializes in conducting these interviews. The rationale is departing employees may be more open and honest with an objective third party. These interviewers are often trained in asking probing questions and can elicit more information.

The information solicited from the exit interview is only valuable if it used. It must be disseminated to the appropriate people within the organization and then actually used to make positive changes. Otherwise, the company has missed a valuable opportunity.