Don't just say goodbye...
Losing an employee is costly. Replacing an employee can cost an organization 150 – 400 % of their employee’s salary.
Recruiting and retaining the right talent improves organizational performance (Human Resources Management. 5th Edition). This translates to:
- Increased profits. There appears to be a positive relationship between job satisfaction and revenue. Some organizations with high job satisfaction have reported profit rates that are at least 4% higher than their competitors (Journal of Applied Psychology, 88, 605-19).
- Higher customer satisfaction. Studies suggest that there is a correlation between employee retention and customer satisfaction (Personal psychology, 56, 383-404).
Exit interviews are a practical way to:
- Reduce turnover. When you understand why your employees are leaving you can prevent it from happening.
Monitoring company trends over time enables you to learn from your results and evoke positive change within your organization that is targeted to address your specific sources of turnover.
For example, Cendant Mobility, a global relocation company based in Connecticut, USA, was able to reduce their turnover by 30 percent and save $8.6 million by offering their employees flexible start and end schedules and four-day compressed work week options. These options were developed after their survey results suggested that the majority of their employees were 30-40 year old women struggling with work life balance, a significant factor in employee satisfaction (Workforce, March 2004, 38-40).
- Retain high quality employees. It’s never too late to ask, “Why are you leaving?” Exit interviews give you the information you need to understand what your employee’s value about your organization and what they believe should change (Human Resources Management. 5th Edition).
- Increase staff satisfaction. It’s important to let your employees leave on good terms. Feedback from exiting employees whom we have spoken with has overwhelmingly been one of relief; that they were able to voice their thoughts, views and opinions – even if nothing was to come of their comments.
- Set the stage for an exiting employee to return. It is common for exiting employees to consider returning to your organization. The exit interview provides you with the information you need when recruiting back your valuable talent (CNNMoney.com, March 2, 2001).
It is best practice for exit interviews to be performed at arms length by a third party. Hiring an outside consultant encourages employees to feel comfortable and motivated to provide honest feedback regarding your organization as they are leaving. HR Management 2008
If you would like more information, please contact Ingrid Kandal at 604.806.5327 or ikandal@bchs.bc.ca.