Our Termination and Exit Interviews Survey Is In c How Do You Compare?
by Stephen Bruce, PhD, PHR
Wednesday, February 18th, 2015 - HR Daily Advisor
Employee termination and turnover are daily challenges for
HR—unfortunately, you canft retain them all! BLRfs Termination and Exit
Interviews Survey sought to discover whatfs happening in the real world with
these important processes. How do your practices stack up?
Highlights of the Termination and Exit Interviews Survey (conducted
in December 2014):
- 82% of respondents indicated voluntary termination is more
common than involuntary.
- 89% of participants conduct exit interviews in order to
identify problem areas within the organization so they might enhance
future retention.
- Only 5.5% of those surveyed indicated they are gvery
effectiveh in acting upon information collected during exit
interviews.
- 17.8% of participants indicated that conducting interviews
in person, either on the phone or face-to-face, was one of the most
important exit interview practices.
- Severance pay is offered to departing employees for 32.8% of
respondents.
Thanks to all 1,892 individuals who participated in the survey! Here are the
detailed responses.
Turnover
Employee turnover can be an issue for employers, especially in a tight labor
market. Involuntary termination isnft usually the problem, or is it? Voluntary
termination is almost always a concern for employers—if therefs too much of it.
For 82% of survey participants, voluntary termination is more common than
involuntary termination.
The first step to keep termination from running rampant in any organization
is to find out why employees are leaving. That, of course, begins with tracking
turnover, which is why 73.3% of our survey participants have a process in place
to do just that. Oddly, 87% know their annual turnover rate even though not all
of them track turnover. For example, 16.5% report an annual turnover rate of
more than 20% and 11.1% report a rate of 16% to 20%.
Exit interviews
A hefty 79.5% conduct exit interviews with departing employees, with 81.1%
indicating they do so in order to determine the reason for the employeesf
resignation. Even more, 89%, conduct them to identify problem areas within the
organization in order to enhance future employee retention. And, 68.8% conduct
exit interviews to find ways to improve organizational culture. Only 20.3% cite
managing turnover cost as a reason for conducting exit interviews. A mere
33.6%, however, conduct exit interviews gall the timeh and 43.2% conduct them
gmost of the time.h
Employee type has a lot to do with whether exit interviews are conducted.
For instance, interviews are conducted with departing director level employees
for 59.3% and with hourly employees for 82.7%. In fact, the higher the
employeefs level the less likely an exit interview will be conducted.
In person is the method of choice for conducting exit interviews for 83.3%,
followed by paper surveys for 36.3% and phone interviews for 25.2%. Online
surveys round out the group with 14.1%. Conducting exit interviews internally
is preferred by 96.1%, with HR handling the task for 90% and the departing
employeefs direct supervisor conducting the session for 13.6%. Most exit
interviews (45.8%) are conducted during the departing employeefs notice period
and 43.1% take place on the last day of employment. Exit interviews are
conducted within the first week after leaving for 11.2%.
Regarding the exit interviews that are conducted externally (by an outside
third party), 61% are confidential with names and other unique identifiers not
available to the employer. Regular reports from their vendor are received by
40% while customized reports are received by 16%. Another 30% access their
reports online, and 10% are debriefed by the outside third party.
Surprisingly, only 36.7% include a compliance/ethics question regarding
unethical, illegal, or fraudulent behavior as part of the exit interview. Exit
interview information is reported/reviewed sporadically for 40.8% and weekly
for 4%. Monthly is the norm for 12.1% and quarterly works for 14.7%.
Exit interview information is relayed verbally to senior management for
45.8% and via e-mail for 22.8%. Only 15.4% formally review the information with
senior management.
Exit interview information is somewhat valued by senior management for 36.7%
and very valued for 17.7%. The information is somewhat effectively acted upon
for 43.9% and very effectively acted upon for 5.5%. Getting senior management
buy-in is a hurdle to effectively utilizing exit interview information for
25.9%, and creating an action plan is a challenge for 19.6%.
Exit interview information is used as a guideline for future organizational
improvement for 50.2% of survey participants. It is used to create an action
plan to resolve issues that surfaced for 20.7%. Of those who create action
plans, 92% utilize internal resources led by an internal initiative
leader.
Metrics
When asked about the type(s) of metrics used to monitor the effectiveness of
action taken with regard to exit interview information, 4.3% track their action
plan success rate, and 2.7% track retention rate. Turnover rate is tracked by
9.7% with 2.72% tracking turnover by department and/or supervisor and 1.8%
tracking voluntary turnover.
A hefty 40.5% have no metrics for monitoring the effectiveness of their
action plans. Their responses included interesting comments such as:
gWe are a small organization with only 2 people in our HR department and
once we conduct the exit interview we donft do anything with the information.
Some of our senior management donft see the value and look at it as a way for
the employee to bash the organization.h
gWe are so small of a company that HR can report back to the CEO if there
were positive or negative improvements as a result of sharing a negative exit
interview.h
gWe do not even use a standard list of questions. Each manager will ask or
not ask whatever they think is important or relevant.h
gTurnover has become so problematic that keeping the open positions filled
with competent staff is consuming most of the available resources.h
gWe have no metrics since we havenft implemented any action plans.h
gWe do not use anything formal; we simply follow up or know the status
because wefre the ones taking the action.h
Another 37.3% indicated that using metrics is not applicable for their
organization.