Wednesday, February 03, 2010
I recently came across an article that discussed the benefits of an employee “Stay Interview” rather than an “Exit Interview” (http://jobstay.blogspot.com/). Rather than focus on why employees leave an organization, HR practitioners should direct their attention to the reasons employees remain with the employer. After all, once the employee has decided to exit the organization, how likely is it that his or her mind will be influenced by some last minute effort by the employer? Is the Exit Interview akin to looking in the rear view mirror while attempting to navigate the Interstate? Coming from the Midwest, doesn’t the Exit Interview have something to do with cows and barn doors being left unlocked? Does this mean that HR practitioners have been wasting their time on Exit interviews? Have they been focused on the wrong side of the retention formula? Is the answer to these questions “Yes”, “No”, “Maybe” or “All of the Above?
I suggest that both interview processes have the ability to yield significant insights into the dynamics of why employees remain with or leave an organization, provided those interview processes are executed properly.
As with any employee communications efforts, one goal is to engage the employee and develop an affinity that bonds the employee to the organization. From the standpoint of a Stay Interview, the employee is engaged soon after joining the organization and periodically thereafter in the future. These interviews may take the form of structured one-on-one interviews with the immediate manager or standardized questionnaires (Antidotal information is not helpful.). The use of standardized and structured questionnaires allows the organization to gather information systemically on the employees’ perceptions of the employee-organizational relationship. At the same time, standardized questionnaires permits the organization to measure the relative degree of satisfaction between internal departments and externally with similarly situated organizations.
If repeated over time, a trend analysis can point to changes in the employees’ perceptions of the employee-organizational relationship. Armed with this information, the organization can proactively take steps to alter its ongoing employee communications efforts to address any emerging concerns. At a large insurance firm, I was able to use employee satisfaction survey and other data to demonstrate that the organization’s employees perceived there was no value to them from the employer’s old traditional defined benefit pension plan. This lead to a conversion of the plan to a pension equity style and an upgrade in the 401(k) plan to a safe harbor design. During conversion, employees were allowed a one-time choice between the old and new pension plan options. Follow-up surveys confirmed this change was positively received by employees.
Not to be marginalized, Exit Interviews do have an important role to play in assessing the health and well-being of the employee-organizational relationship. There are times when no matter what the organization does, the employee is going to separate from the employer. Some reasons are beyond the control of the organization and the relative quantities of those reasons need to be known. Not having this knowledge leaves the organization in the dark as to the status of the total employee-organizational relationship. As with the Stay Interview, the use of standardized and structured questionnaires allows the organization to systemically measure why employees are exiting the organization. If preventable reasons are identifiable, the organization can take steps to mitigate the impact of those reasons. Through the organization’s continuous improvement process methodology, efforts can be institutionalized to minimize the future influence of these reasons upon the employee-organizational relationship.
Returning to my original position, both the Stay and Exit interviews have roles to play in assessing why employees attach to and exit from organizations. To be most effective, these processes should employ standardized and structured questionnaires allowing for internal and external comparisons. These comparisons must permit the identification and tracking of procedural, managerial, organizational, and employee issues that may affect the employee-organizational relationship. At that point, the organization has the information needed to make a business case for change, if desired.
I recently came across an article that discussed the benefits of an employee “Stay Interview” rather than an “Exit Interview” (http://jobstay.blogspot.com/). Rather than focus on why employees leave an organization, HR practitioners should direct their attention to the reasons employees remain with the employer. After all, once the employee has decided to exit the organization, how likely is it that his or her mind will be influenced by some last minute effort by the employer? Is the Exit Interview akin to looking in the rear view mirror while attempting to navigate the Interstate? Coming from the Midwest, doesn’t the Exit Interview have something to do with cows and barn doors being left unlocked? Does this mean that HR practitioners have been wasting their time on Exit interviews? Have they been focused on the wrong side of the retention formula? Is the answer to these questions “Yes”, “No”, “Maybe” or “All of the Above?
I suggest that both interview processes have the ability to yield significant insights into the dynamics of why employees remain with or leave an organization, provided those interview processes are executed properly.
As with any employee communications efforts, one goal is to engage the employee and develop an affinity that bonds the employee to the organization. From the standpoint of a Stay Interview, the employee is engaged soon after joining the organization and periodically thereafter in the future. These interviews may take the form of structured one-on-one interviews with the immediate manager or standardized questionnaires (Antidotal information is not helpful.). The use of standardized and structured questionnaires allows the organization to gather information systemically on the employees’ perceptions of the employee-organizational relationship. At the same time, standardized questionnaires permits the organization to measure the relative degree of satisfaction between internal departments and externally with similarly situated organizations.
If repeated over time, a trend analysis can point to changes in the employees’ perceptions of the employee-organizational relationship. Armed with this information, the organization can proactively take steps to alter its ongoing employee communications efforts to address any emerging concerns. At a large insurance firm, I was able to use employee satisfaction survey and other data to demonstrate that the organization’s employees perceived there was no value to them from the employer’s old traditional defined benefit pension plan. This lead to a conversion of the plan to a pension equity style and an upgrade in the 401(k) plan to a safe harbor design. During conversion, employees were allowed a one-time choice between the old and new pension plan options. Follow-up surveys confirmed this change was positively received by employees.
Not to be marginalized, Exit Interviews do have an important role to play in assessing the health and well-being of the employee-organizational relationship. There are times when no matter what the organization does, the employee is going to separate from the employer. Some reasons are beyond the control of the organization and the relative quantities of those reasons need to be known. Not having this knowledge leaves the organization in the dark as to the status of the total employee-organizational relationship. As with the Stay Interview, the use of standardized and structured questionnaires allows the organization to systemically measure why employees are exiting the organization. If preventable reasons are identifiable, the organization can take steps to mitigate the impact of those reasons. Through the organization’s continuous improvement process methodology, efforts can be institutionalized to minimize the future influence of these reasons upon the employee-organizational relationship.
Returning to my original position, both the Stay and Exit interviews have roles to play in assessing why employees attach to and exit from organizations. To be most effective, these processes should employ standardized and structured questionnaires allowing for internal and external comparisons. These comparisons must permit the identification and tracking of procedural, managerial, organizational, and employee issues that may affect the employee-organizational relationship. At that point, the organization has the information needed to make a business case for change, if desired.
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