exit interview research study abstract: unlocking why employees quit & how to retain them

Created for:

Talent Management Solutions

www.retensa.com (212) 545-1280

Uncover Why Your Employees Quit:The Future of Exit Interviews

Exit Interview Research StudyResults Report Highlights


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Exit Interview Research Study: Business Case

• Modern organizations are consistently challenged to retain top talent, regardless of economic climate.

• Retention will not get easier : In the ~70 year history that BLS tracked data, as unemployment decreases, turnover increases.

• Exit interviews are the only tool that can capture “Primary drivers” of employee turnover.

Exit Interview Research Study Goals:

1. Provide a benchmark for exit interview program standards2. Capture all exit interview methods and variations3. Measure the impact of exit interviews on performance4. Establish Best Practices in conducting exit interviews



Exit Interview Research Study: Parameters

Retensa’s Research Division developed a 40 item survey that includes questions on:

• Key organizational characteristics• The methods currently used to conduct

exit interviews• Exit interview effectiveness

Of the 353 respondents in EIRS;• 295 completed majority of survey

questions• 75% of organizations currently conduct

exit interviews for all units• 18% of organizations conduct exit

interviews for some units• 7% do not conduct exit interviews at all



Defining Exit Interview VocabularyA common language is needed to ensure consistency across programs/solutions, most often cited phrases:

1 SeparationAn active individual’s departure from an organization for any reason

2 Resignation All Voluntary employee separations

3 TerminationAll Involuntary separations (often misstated for any person departing)

4 Principal Individuals who complete an Exit Interview

5 ObserverManagers or HR department who observe or comment on employee (like 360s)

6 Exit InterviewA survey conducted at the end of an individual’s tenure (often employee, though can be members or students) to gather experience perceptions

7Post-Exit interview

Conducted a minimum of 3 months, typically 4 to 6, after separation to increase “boomerang” effect of returning highly valued staff



Defining Exit Interview VocabularyA common language is needed to ensure consistency across programs/solutions, most often cited phrases:

8 ConfidentialDemographic information may be connected to principal, by third party or exit interview software, but individual responses are not associated or published

9 AnonymousNo personal information is linked to an individual survey or responses

10Web-Based Survey

Web-based exit interviews are sent directly to separating employees' inbox, where they can complete the exit interview in privacy at their convenience - VARIATION: “Kiosk”-style walk up webpages for anonymity

11Voice-Based Survey

Often over the phone, these exit interviews are most appropriate when organizations want to know the complete picture

12Paper-Based Survey

For organizations in manufacturing, retail, mining, transportation, or other field-based industries whose workforce may not have easy Internet access.



Exit Interview Research Study Resources

To download the full 50+ page Exit Interview Research Study report with advanced insights:

http://exitinterviewsurvey.com/termination-checklist/

Use this coupon code for to get a significant discount: SLIDESHARE12





Research Study Respondent DemographicsIndustries

Profes-sional

Services/Law/Con-

sulting 16%

Health Care 16%

Manufac-turing/

Chemicals12%

Financial Services/

Insurance/ Real Es-

tate11%

Information Technol-

ogy/ Tele-com10%

Retail/ Hospitality/ Food Ser-

vices9%

Nonprofit/ Govern-

ment/ Ed-ucation

6%Consumer

Goods 4%

Energy 4%

Other4%

Media/En-tertain-

ment/ Pub-lishing

3%

Phar-maceu-

tical/Biotech

3%

Automo-tive/

Transporta-tion/ Air-

lines/ Aerospace

3%

Size of Workforce: Total (Including Seasonal)

Conduct Exit InterviewsYearly Voluntary Turnover Rate

Proportion Workforce: Generation Y (under 30)

Organization HR Structure

Less than 10011%

101-25022%

251-50018%

501-1,00012%

1,001-2,50014%

2,501-5,00010%5,001-

10,0004%

10,001 plus9%

Less than 10

15%

11-2031%

21-3029%

31-4015%Greater

than 4111%

Less than 10 Percent

54%

11-20 Percent

39%

Greater than 21 Percent

8%

Yes75%

Yes (not at all units)

18%

No8%

Centralized 77%

Shared Services

18%

Localized Decentral-

ized 5%



Voice

Web

Paper

What Exit Interview program methods are used?



How are exit interviews conducted? Reported?How do you collect Exit Interview Data?

In-Person (Internal Staff)

Paper Based (Mail/Fax)

Web Based (Survey)

Voice Based(Phone)

Touch Tone (IVR)

0% 20% 40% 60% 80% 100%

84.3%

30.2%

19.6%

15.7%

0.4%

HR Department

Separating Manager

Dept. Regional Director

External Third Party

Other

0% 20% 40% 60% 80% 100%

95.3%

11.5%

4.7%

3.8%

1.3%

Who Conducts Your Exit Interviews?


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How are exit interviews conducted? Reported?

Other

Not Compiled/ Nothing

External Third Party

Executive Leadership

Dept. Regional Director

Separating Emp.'s Manager

HR Department

0% 20% 40% 60% 80% 100%

0.9%

6.0%

2.1%

2.6%

1.7%

2.6%

89.7%

2.6%

3.8%

1.3%

32.9%

14.1%

15.0%

87.2%

1.7%

7.7%

0.0%

47.0%

29.1%

25.2%

74.8%

Implements Change Reviews/ Evaluates Information Compiles/ Reports Information

Who Is Responsible for Compiling/Reporting Information, Reviewing/Evaluating Information, and Implementing Change Using Information from Exit Interviews?


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What do exit interviews cover?Which Areas Are Covered with Specific Questions in Your Exit Interview?

Reason for Leaving

Compensation/ Benefits

Employee Perception of Organization

Supervisor/ Manager Relationship

Opportunities for Advancement

Position/ Job Responsibilities

Treatment of Employees

Training/ Development

Organization Leadership

Organizational Culture

Colleague/ Peers

Company Reputation

Nature of Work/ Industry

Work Life Balance

Physical Work Conditions

Performance Appraisals

Reason For Joining

No Specific Areas

Other

0% 20% 40% 60% 80% 100%

95.7%85.5%

85.5%

82.1%

77.9%

69.8%

69.8%

68.9%

66.4%

64.3%

57.4%

52.8%

51.1%

43.4%

42.1%

40.4%

26.0%

3.0%

1.7%


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Research Study: Selected Results

Voluntary Separations: Typical Advance Notice before Resignation

Voluntary Separations: When Are Exit Interviews Typically Conducted?

Leave with no notice

0-1 Week

1-2 Weeks

3-4 Weeks

5-6 Weeks

7-8 Weeks

9-10 Weeks

11 Weeks

0% 20% 40% 60% 80% 100%

1.3%

1.3%

86.8%

9.0%

0.0%

0.4%

0.0%

1.3%

Confiden-tial

58%

Neither anony-

mous nor confiden-

tial35%Other

5%

Anonymous1%

Exit Interviews Are Typically:

As close to resig-nation no-

tice 31%

After res-ignation and prior to separa-

tion60%

Within a week af-ter sepa-

ration 5%

1- 2 weeks af-ter sepa-

ration2%

2 Weeks or Later

After Separa-

tion2%


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Research Study: Selected Results

Open-Ended

Likert Scale

Yes/No or True/ False

Multiple Choice

Rank Order

Single Choice

Other

0% 25% 50% 75% 100%

85.2%

47.0%

15.2%

13.0%

8.3%

3.5%

1.3%

Number of Questions on a Typical Exit Interview

Types of Questions on an Exit Interview

5 or less questions

8%

6-10 questions

26%

11-15 questions

30%

16-20 questions

23%

21-30 questions

10%More than

302%


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What changes are made from Exit Interviews?

Trainin

g and

Develop

ment

Superv

isor/M

anag

er Rela

tionshi

p

Treatm

ent o

f Emplo

yees

Teamwork

/Peer R

elation

ships

Compe

nsation

and B

enefit

s

Opport

unitie

s for A

dvance

ment

Organiz

ationa

l Cultu

re

Perform

ance

Apprai

sals

Position

/Job R

espon

sibilitie

s

Work

-Life

Balance

Organiz

ationa

l Lead

ership

Physica

l Work

Conditi

ons

Compa

ny Rep

utation

/Brand

Other

0%

20%

40%

60%

80%

100%

22% 24%32% 35% 38% 39%

45% 45% 47% 47% 51%57%

63%70%

64%66%

62% 57% 52% 53% 46% 43%50%

45% 40%38%

33%26%

14% 10% 6% 8% 11% 8% 9% 12%3%

8% 9% 5% 4% 4%

No Modifications Slight Modifications Major Modifications

More change Less change


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Advanced Research Study AnalysisAdvanced statistical analysis of the study results provided in the Retensa’s Exit Interview Research Study Report includes insight of comparisons across organizational demographics and between different practices themselves.

The advanced findings highlight statistically significant differences found between organizations by varying demographics:

1. Industry2. Size of Workforce3. Voluntary and Involuntary Turnover Rates4. Percent Seasonal Workforce5. Percent of Workforce that is “Generation Y” 6. Modifications/Improvements7. Implementing Changes


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Exit Interview Program Change Outcomes

1. Increase Manager Effectiveness2. Increase Attraction of Candidates3. Reduce Training Costs4. Reduce Turnover5. Improve Customer Experience6. Improve Orientation (Shorten the

Learning Curve)7. Reduce Absenteeism8. Improved Transfer of Knowledge9. Increase Performance

Results derived from valid and reliable exit interviews benefit organizations in the following ways:


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What is the Impact of Exit Interviews?

There are significant differences in the perceived applicability of exit interview responses related to areas of modification.

MODIFICATION MADE TO: Retain High

Performers/Potential Employees

Reduced Turnover

Increased Morale /Motivation of

Current Employees

Outweighs Cost of Performing

Them Reduced

Absenteeism

Teamwork/Peer Relations Company Reputation/Brand Compensation and Benefits Opportunities for Advancement

Organizational Culture Organizational Leadership

Performance Appraisals Physical Work Conditions

Position/J ob Responsibilities

Supervisor/Manager Relationships

Training and Development

Treatment of Employees Life Balance/Flexible Work Arrangements


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Best Practices: Future Program Standards1. Organizations that have uniform and consistent exit interview(s) more

strongly agree that the information collected is valuable to organizational improvement

2. Exit Interviews are most effective when they are performed 2 weeks before to 2 weeks after separation date

3. Post-exit interviews are most effective four (4) to six (6) months after separation date

4. Consider Confidentiality, not Anonymity, for highest application of results

5. Mixed methods provide most cost-effective approacha. Voice-based for high level positions / high value individuals / high turnover

areasb. Web-based for most othersc. Minimize paper-based when possible


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Best Practices: Future Program Standards6. Use dedicated Exit Interview Software to automate and simplify

deployment and reporting, look for:a. HRIS integrationb. Multiple survey capabilityc. Multiple method capabilityd. Multiple observer or 360 capability (including HR Only questions or Manager

questions)

7. In order of Return on Investment (ROI) value, Exit Interview target populations should include:a. Voluntary (Resignations)b. Retireesc. Transfersd. Involuntary (Layoffs/Reductions in Force)e. Internshipsf. Contingent/Project staffg. Involuntary (Terminations)


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Internationally recognized employee retention experts by:

Who is Retensa?


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Exit Interview Research Study Resources

To download the full 50+ page Exit Interview Research Study report with advanced insights:


Use this coupon code for to get a significant discount: SLIDESHARE12




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Thank You

Discover the next generation of Talent Management solutions:Insightful Exit Interview Software: www.ExitPro.com

Revealing HR Metrics Dashboards: www.HRMetricsPro.comROI Driven Employee Retention Strategies: www.Retensa.com

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exit interview research study abstract: unlocking why employees quit & how to retain them

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