Conduct Stay Versus Exit Interviews

Conduct Stay Versus Exit Interviews

Jeff McLanahan
Contributing Writer
Direct Energy

Turnover is a big challenge in our industry.  People leave companies for a variety of reasons and when we are not prepared, it can have a significant impact on our business.

Besides the potential loss of revenue, the expenses associated with recruiting, selecting and onboarding a new hire can be quite high.  Some believe that you can just post a job and “they will come,” but turnover expenses are like that picture of the iceberg.  Most of the costs are below the water line and are difficult to see unless someone explains them.

These costs include the costs of recruiting materials, the salary and time of people involved in the recruiting and interviewing of candidates, the drop in service levels, the overtime to cover shifts, the stress on those covering the shifts and the costs to onboard and train a new hire.

While some turnover is inevitable, a strategy that has been found to be effective is conducting “stay interviews.”  Many companies conduct “exit interviews” and these can be effective in determining issues that are causing people to leave, but they are reactive.

Effective stay interviews are proactive and help create regular communication with your team.  In a stay interview, the discussion is centered around what keeps the employee wanting to stay with the company.  Some possible questions include:

1 – Have we done what we said we would do?  When someone decides to join your company, it most likely has to do with the expectations set during the interview.  You must ensure that you are keeping your promises.  This question should be asked to every employee after 30, 60 and even 90 days of employment.

2 – What is the company doing very well?  Everyone wants to do good work.  Have the employee explain what they like best about working at the company and also what you do better than your competitors.

3 – What is one thing we could be doing better?  Every company has room for improvement so don’t take this response personally.  In fact, if you are not prepared to receive this feedback in the spirit it is intended, don’t even ask it.  When the response is given, take action on it if possible.

4 – Where do you want to be in five years?  Many employees are content with their role but others are looking for a career path.  Even though your company may not be large enough to provide this career path, employees will stay longer if they are working for a leader that is helping them move towards their professional goals.

5 – Is anything happening that might cause you to leave the company?  When you ask this question and the employee identifies an issue, in most cases you have some time to address and fix it.  If an issue surfaces that cannot be repaired, at least you are on notice that the employee is most likely leaving and you can begin preparing for their departure.

Conducting effective stay interviews can help improve your employee retention.  These five questions can be used but there are many others that can be used as well.

One of the best things about implementing stay interviews is that the only thing they cost you is some time, but the returns from lowered turnover can be dramatic.  Give it a try!