When an employee leaves there are indirect costs in relation to the time and effort that is required to replace any employee as direct recruitment and advertising costs, there are also less tangible cost associated to losing knowledge and experience that is specific to an organization; Prevention is the best cure against the problem of losing good employees.
From time to time employees will leave an organization but it is important for an employer to know that people are leaving for the right reasons and not for reasons that could have been addressed and resolved.
Concerns of employees can be identified early by the regular use of well designed job satisfaction surveys, allowing for problems to be resolved and helping to minimize needless loss of staff. However some problems, for example those that are the result of a clash of personalities, do not always come to light until it is too late.
A lack of career development and/or poor management are two common reasons for employee dissatisfaction that can often result in personnel deciding to change jobs. Both of these problems can be difficult to identify even for organizations that adopt regular 360-degree appraisals (i.e. where as part of the overall appraisal employees are requested to evaluate their line managers).
While still employed employees can be very reluctant to criticize their managers for fear of reprisal; they can however be more candid when completing an employee exit survey.
Although adopting exit surveys many not prevent individuals from leaving it will help bring to the surface problems that could, if left unchecked, result in poor staff moral for the remaining staff and worse case scenario, a flood of resignations.
Lack of Career Development
Not all employers can offer, and nor do all employees desire, a clear and long term career path. Some people find comfort and job security in doing one job but there are just as many who prefer to be continually challenged, always acquiring new skills and steadily moving up the corporate ladder. Organizations that succeed and excel need the balance of having high flyers and steady Eddies.
Where losses due to a lack of career development are occasional they may also be inevitable, but where they are frequent, then changes to the organizational structure might need to be considered to allow for greater career development of the employees.
Sub-standard Management
Many managers achieved their position through promotion, but it does not always follow that a good worker will automatically make a good manager and often people are assigned management position without any formal management training.
Managers who perform poorly can be quick to discredit the views of disgruntled staff, ‘I am glad they went it saved me getting rid of them’ and ‘they were useless anyway’ may prove to be common responses to those managers being asked if there are any problems that might be causing people to leave the organization.
It is understandable that senior management would want to support their line managers by giving them the benefit of any doubt and a poor employee may not be averse to unfairly criticising their line manager. If through an Exit survey a man-management problem were to be identified early it presents a realistic chance that the problem could be properly addressed and resolved with appropriate formal training and guidance.
Records
It is not that unusual for a person to leave an employer and put in a claim for constructive dismissal at a later date. With legal representation now adopting the ‘No win no fee’ model even good employers are finding this to be a real problem. At best Exit surveys will provide an organization with a valuable record of the employee’s reasons for leaving, and at worse, provide advanced warning that a possible claim for unfair dismissal might be expected.
A tribunal may not readily accept the word of an employer that when the employee left they did so without indicating any grievance.
When to conduct an exit survey
Exit surveys can with the employee’s agreement be delayed for a few months or be conducted as part of the termination procedures.
If the timing of the exit survey is delayed for a month or two it could allow for a period of reflection where the ex-employee may be less prone to emotion and more objective and if they have started a new job they may be in a position to compare their previous role with their new role.
The advantages with conducting an exit survey as part of the termination procedure is that although emotions may be running high it is probably more reflective of the employee’s state of mind and therefore closer to the reasons they have decided to leave (justified or otherwise). If left until later any comparison between their old and new roles may be the result of them putting on a brave face, and if reasons are given that require action, the delay may well hinder the problem from being resolved.
Summary
By including exit surveys as part of the employee termination procedures organizations will generally benefit in multiple ways. They will at the very least provide good records that could prove very valuable later, at best they will provide management with information that can help improve an organization spiritually and with the bottom line.
See the following survey for sample exit interview questions.