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Operations Why Are They Leaving?
Operations Why Are They Leaving? | Why Are They Leaving? |
| Written by Reed Richardson | |
 What benefits can a formal exit interview process offer to small- or mid-sized businesses? "Employee turnover is a manifestation of other issues," notes Professor Brooks Holtom, who specializes in human resource management at Georgetown University's McDonough School of Business. "If workers who are leaving feel comfortable enough, though, they can be very helpful in identifying problems that a business owner can quickly zero in on." These can include everything from salary issues to organizational mismanagement to poor hiring. And he adds that exit interviews can be a particularly effective tool for catching serious, ethics-related nightmares, such as embezzling, dangerous work conditions, sexual harassment, or workplace discrimination, any one of which could be catastrophic for a small business. How many SMBs actually perform exit interviews? Long a favorite tool of large corporations—an estimated 90% of big businesses conduct exit interviews—the policy has never achieved the same level of acceptance in small and mid-sized companies—a recent survey put the number that ever perform exit interviews at under 70% (see graph).  Leigh Brahnam, author of The 7 Hidden Reasons Employees Leave, says this is understandable. "In my experience, some employers wouldn't listen to the data from an exit interview because of where the information comes from," he says. Holtom agrees, noting that the intimacy of a small company also plays a significant role. "Many small employers won't bother because they think they already know the reason why someone is leaving."Where and when should a departing employee be given his or her exit interview? "Exit interviews on an employee's last day of work do get a higher participation rate," says Branham. "But guaranteeing anonymity is really the key to getting something worthwhile out of them." Consequently, Branham actually advises against using anyone from inside the company, even an HR rep, to conduct exit interviews. "Even though you'll end up with a lower participation rate, I recommend going with an outside company to do exit interviews, preferably contacting the employee by phone two to four weeks after they have left the company," he explains. This lag gives departing employees time to both cool off and better reflect on why they really left. By adding the buffer of a third party, Branham says your chances of getting more forthright responses increases. "That's when you'll hear the most candid comments, the ones that begin, 'I will only tell you this, but ... " What are the potential disadvantages of exit interviews? "In my opinion, there is no upside for the employee to participate in an exit interview," says Nick Corcodilos, founder of the business advice website askthehead hunter.com. "Employers all say that they're just gathering data to make their companies run better. I say, 'What a load of baloney.'" Instead, Corcodilos believes that employees could be jeopardizing their future careers if they speak out (he advises every departing employee to politely say "no comment" to every question) and, because of this inherent conflict of interest, he questions the validity of anything said in an exit interview. "The intent is good, but the timing is lousy," he explains. "That employee who's leaving no longer has any skin in the game, so management has a ready-made excuse for dismissing whatever he says." In the end, what are the best practices for exit interviews? While exit interviews can be a valuable tool in identifying problems, many experts advise small business owners to ask the same questions before an employee announces they're leaving. "I call it the windshield versus the rear-window approach," says Holtom. "If a small business owner decides he can only budget $2,000 a year for exit interviews, he or she is hands down better off taking that money and doing an employee morale survey instead." Corcodilos concurs: "Look, employers should be gathering information from their employees on what is or isn't working, but they should invest the time and effort to do it with current, not former, employees." |
