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.
It is inevitable that employees will leave from time to time but a good employer will want to know why an employee has decided to leave to ensure that personnel are leaving for the right, and not the wrong, reasons.
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, especially those that are the result of a clash of personalities, are not always brought to the surface until it is too late.
There are two very common reasons for employee dissatisfaction that can often result in personnel deciding to change jobs, a lack of career development and/or poor management. 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 system, employees evaluate their managers).
Some employees while still employed may be reluctant to criticize their line managers for fear of reprisal; however they can be more candid when completing an employee exit survey.
It is unlikely that an Exit survey will prevent any individuals from leaving but it will help identify problems that could, if left unchecked, could result in poor staff moral for the remaining staff and worse case scenario, more resignations.
Limited 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.
Poor 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. But by conducting exit surveys, if a man-management problem were to be identified early there is a good chance that it can be addressed and resolved with the 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. Exit surveys will at best, provide a valuable record of the employee’s reasons for leaving, and at worse, provide early warning that a possible claim 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
With the employee’s agreement Exit surveys can be delayed for a few months or be conducted as part of the termination process.
There can be an advantage in delaying an exit survey for a few months in that a former employee may be less emotional and more honest with their views and 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 the exit survey is delayed then any comparison between the ex-employee’s past and present role may be the result of them putting on a brave face or just biased because of them having a new and fresh role, and if the reasons they left be ones that require action, then the delay may hamper the problem from being resolved.
Summary
Organization that include exit surveys as part of their employee termination procedures will generally benefit in a number of ways. Having good records could prove to be very valuable later and they will also provide management with information that can help them improve an organization’s moral as well as the bottom line.
See the following survey for sample exit interview questions.