Exit interviews: How to Get The Most Out of Them for Employees and Employers

Employees change roles and companies much more frequently than they used to. As a result, exit interviews have become a tool that’s growing in importance for organizations. But are companies making the most of this opportunity? And how can departing employees navigate this final interaction to leave a positive lasting impression? This guide explores the art of the exit interview from both the employer's and employee's perspectives.

The Value of Exit Interviews

Exit interviews, when done right, can be a goldmine of information for companies. They provide insights into why employees leave, what the company is doing well, and where it needs improvement. As one Harvard Business Review study found, exit interviews can reveal problems in the organization, shed light on the competitive landscape, and even foster innovation by soliciting ideas for improvement.

These interviews serve multiple purposes:

1. Uncovering issues related to HR: This goes beyond just salary and benefits, delving into job design, working conditions, and company culture.
2. Understanding employees' perceptions of work: This can help improve employee motivation, efficiency, and effectiveness.
3. Gaining insight into managers' leadership styles: This allows companies to reinforce positive managers and identify problematic ones.
4. Learning about HR benchmarks at competing organizations: This helps companies stay competitive in terms of compensation and benefits.
5. Fostering innovation: By soliciting ideas for improving the organization from those who have a fresh perspective.
6. Creating lifelong advocates: Treating departing employees with respect can turn them into ambassadors for the organization.

However, the same study discovered a troubling trend: while three-quarters of companies conduct exit interviews, fewer than a third could cite a specific action taken as a result. This disconnect highlights the need for companies to not just collect data, but to analyze it and act on the findings. Without follow-through, the potential benefits of exit interviews are lost, and they become mere formalities rather than tools for organizational improvement.

Best Practices for Companies

To maximize the value of exit interviews, companies should consider the following best practices:

1. Timing is everything: Conduct the initial interview halfway between the announcement of departure and the actual leave date. This allows for emotions to settle but catches the employee before they mentally check out. Some experts suggest that the most productive moment is after the initial rush of emotion has died down, but before the employee has disengaged. This timing allows for more balanced and thoughtful responses.
2. Choose the right interviewer: Second-line managers (the departing employee's boss's boss) often get the most honest feedback. They're removed enough to be seen as impartial, but still connected enough to understand the context. For follow-up interviews post-departure, consider using an external consultant. External interviewers can often elicit more honest feedback due to their perceived neutrality and expertise in conducting such interviews.
3. Make it a conversation, not an interrogation: Use a mix of structured and open-ended questions to allow for both trend spotting and unexpected insights. A good interviewer should listen more than they talk, avoiding displays of authority and remaining patient and friendly. They should ask open-ended questions and speak only enough to prompt the interviewee or steer the discussion towards important topics.
4. Follow up: Consider conducting a second interview a few months after the employee's departure. Studies show that former employees often give different (and more honest) reasons for leaving after some time has passed. In one study, 59% of former employees who answered a questionnaire mailed several months after their exit gave reasons for leaving that differed from those they'd offered during their initial exit interviews.
5. Share and act on the data: Ensure that exit interview data reaches senior decision-makers who can implement changes based on the feedback. Consider requiring senior line managers to present their subunits' exit interview data in detail at executive committee meetings, including specific actions that will be taken in response to feedback.
6. Respect confidentiality: While it's important to share insights, it's equally crucial to protect the privacy of departing employees. Establish clear guidelines on how exit interview data will be used and shared within the organization.
7. Customize the process: Consider creating an "exit interview menu" that allows departing employees to customize their exit interview experience. This might include choices about the interviewer, location, method (face-to-face, phone, or online survey), length, and follow-up options.

The Employee's Perspective: Navigating Your Exit Interview

If you're the one leaving, an exit interview can be a nerve-wracking experience. Here's how to handle it gracefully:

1. Be professional: Remember, this is your last impression. Stay calm, stick to facts, and avoid emotional venting. Treat this as an opportunity to leave on a high note and maintain positive relationships with your soon-to-be former colleagues and employers.
2. Be honest, but tactful: Provide constructive criticism without burning bridges.  Good endings make good beginnings. Frame your feedback in a way that's helpful rather than hurtful. For instance, instead of saying "My manager was terrible," you might say, "I believe there's an opportunity for improvement in how feedback is delivered within the team."
3. Focus on the positive: Mention what you liked about your job and the company. This helps end things on a good note. Highlight specific projects, initiatives, or aspects of the company culture that you found particularly rewarding or impressive.
4. Be specific: Whether discussing positives or areas for improvement, use concrete examples and data where possible. This makes your feedback more actionable and credible. For instance, don't just say "Communication was poor"; instead, provide an example: "I noticed that important updates were often shared in ad-hoc meetings, which sometimes led to team members missing crucial information."
5. Think big picture: Offer insights that could help the company improve, not just air personal grievances. Consider how your feedback might benefit the organization and your former colleagues in the long run.
6. Prepare in advance: Take some time to reflect on your experiences before the interview. Consider writing down key points you want to make. This can help you articulate your thoughts more clearly and ensure you don't forget important feedback.
7. Stay future-focused: While it's important to provide feedback on your experiences, also try to offer forward-looking suggestions. What changes do you think could benefit the company in the future?

What to Cover in Your Exit Interview

When participating in an exit interview, be prepared to discuss:

1. Your reason for leaving: Be honest but diplomatic. If you're leaving for a better opportunity, it's okay to say so, but avoid comparing your new role directly with your current one.
2. How well your job was structured and if you had the tools to succeed: Discuss whether your role met your expectations, if you had clear objectives, and if you were given the resources and support needed to meet those objectives.
3. Opportunities for learning and growth: Share your thoughts on the professional development opportunities provided (or lacking) in your role. Did you feel challenged? Were there clear paths for advancement?
4. Your relationship with your manager and other leaders: Provide balanced feedback on leadership. If you had a great manager, explain what made them effective. If there were challenges, frame them constructively.
5. What you liked most about your job and the company: Highlight the positives. This could include aspects of the company culture, specific projects you enjoyed, or benefits you found particularly valuable.
6. Your top recommendations for improvement: Offer constructive suggestions for how the company could improve. These could range from small procedural changes to larger cultural shifts.
7. Your experience with company policies and procedures: Provide feedback on how well company policies worked in practice. Were there any that were particularly effective or problematic?
8. Your thoughts on team dynamics and company culture: Share insights on how well teams collaborated and communicated. Was the company culture aligned with its stated values?

Reframing Exit Interviews: The Power of Retention Conversations

While exit interviews provide valuable insights, forward-thinking organizations are shifting towards a model of ongoing feedback and 'retention interviews.' The idea is simple: why wait until an employee is leaving to gather crucial feedback?

Retention interviews, or 'stay interviews,' are periodic conversations with current employees that mirror many aspects of exit interviews. They allow organizations to proactively address concerns, recognize achievements, and foster engagement before an employee considers leaving.

Here's how to implement retention interviews:

1. Frequency: Conduct these interviews annually or semi-annually, separate from performance reviews.
2. Focus: Ask questions like "What keeps you here?", "What would make you leave?", and "What can we do to make your job more satisfying?"
3. Action: Use the insights gained to make real-time adjustments to roles, responsibilities, or company policies.
4. Follow-up: Ensure that concerns raised in these interviews are addressed promptly and visibly.

By normalizing these conversations, companies can create a culture of open feedback and continuous improvement. This approach not only helps retain valuable employees but also makes actual exit interviews more productive when they do occur.

If you’re interested in a more informal way to have these conversations, consider setting up bidirectional feedback rituals with the employees on your team. It’s a way to make sure you’re constantly getting critical information on how you could be improving as a manager and, overall, as a team.

The Bigger Picture: A Culture of Feedback

Ideally, exit interviews should not be the first time employees share their thoughts on the company. Progressive organizations create a culture of ongoing feedback, where employees regularly discuss their satisfaction, career aspirations, and ideas for improvement.

At Candor, we help remote companies embed feedback and recognition into the fabric of their day-to-day interactions. Our platform facilitates regular check-ins, peer recognition, and anonymous feedback channels, creating a continuous loop of communication that can preempt many of the issues typically raised in exit interviews.

Ultimately, an exit interview reinforces the values of the organization. If it becomes part of your organization's DNA, it becomes hugely beneficial. But by leveraging tools like Candor to create a consistent feedback culture, companies can address concerns in real-time, boost employee engagement, and potentially reduce the need for exit interviews altogether.

Conclusion

Exit interviews, when done well, can be a win-win for both employers and employees. For companies, they offer invaluable insights that can lead to meaningful improvements. For departing employees, they're an opportunity to leave on a positive note and potentially help shape the organization for the better.

However, the true power lies in creating a culture of continuous feedback, where exit interviews are just one part of an ongoing conversation. By implementing regular retention interviews and leveraging platforms like Candor, organizations can create an environment of open communication, proactive problem-solving, and continuous improvement.

Whether you're conducting exit interviews or participating in one, approach it as more than just a formality. It's a chance to learn, to improve, and to end a professional chapter on the right foot. After all, in today's interconnected business world, you never know when your paths might cross again.

Remember, the goal is not just to understand why people leave, but to create an environment where great employees want to stay. By mastering the art of the exit interview and embracing a culture of ongoing feedback, organizations can do just that.