Why meaningful exit interviews can be a key talent retention strategy

When an employee decides to leave an organisation, an exit interview is typically conducted as part of the offboarding process. However, are exit interviews truly effective or do they represent just another box to check for organisations?

Afterall, at this stage, the departing employee could be emotionally disconnected and may say what they think the interviewer wants to hear. For these employees, there is little motivation in being emotionally invested in how their exit can benefit the organisation.

Yet, many organisations are not giving up on the exit interview. According to a survey by the Harvard Business Review, 75% of organisations are still conducting exit interviews. In the overarching goal of retaining their best talent and creating a thriving work culture, exit interviews can still play a key role, provided organisations rethink their approach.

“Exit interviews are always beneficial to employers of both big and small organisations,” Bhavani Krishnasamy, Communications Consultant and Trainer, International PR Training, told HRM Asia.

“In the past, employees usually left an organisation for better pay, good prospects or work culture.  Today, there are many more reasons which push an employee to seek a job change.  Generation Z and Millenials look for new experiences and interesting opportunities, and this is true of some seniors too. It is becoming a challenge to retain good, talented staff.”

A well-designed and well-structured exit interview can help to gather insights into why employees leave an organisation, which can range from job satisfaction, work culture, and management styles. By understanding the reasons why employees choose to leave, organisations can revise their strategies to ensure that other top talent do not follow through the exit door.

To maximise the full potential of exit interviews, structure them with consistent questions and a flexible format, Bhavani advised.

She explained, “Consistent questions support data analysis and a flexible format allow the interviewer to ask probing questions where necessary.  More importantly, there should be a private and relaxed setting where the employee feels at ease to share personal views and opinions.”

Not all employees leave as dissatisfied staff, Bhavani also reminded. On the contrary, some are leaving with happiness after gaining great experiences and are looking forward to new ones.

“By leveraging data analytics, organisations can transform exit interviews into a powerful tool to understand and improve employee and work experience.” – Bhavani Krishnasamy, Communications Consultant and Trainer, International PR Training.

Regardless of the employee’s state of mind, organisations can also consider engaging an external consultant to conduct exit interviews or leverage the power of data analytics. “Today, data analytics can help to provide deeper insights into trends and patterns and identify common reasons for employee turnover,” Bhavani said. “Analytics tools can process not just qualitative data but also the emotional tone of responses. Data is what drives decision making and guides HR strategies.”

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For instance, an AI-powered system, removed from personal bias, perceptions and emotions, can potentially make employees feel more at ease to share honest feedback, especially if they are concerned about confidentiality or fear of judgement from a human interviewer.

“AI-driven methods can analyse responses in real time and flag critical issues for attention. The responses collected can also be seamlessly integrated into HR analytics platforms, facilitating easier data analytics and reporting. By leveraging data analytics, organisations can transform exit interviews into a powerful tool to understand and improve employee and work experience,” Bhavani concluded.