Unemployment in Australia is at an all-time low of 3.5% and the average Australian workforce turnover rate is at the highest percentage in over a decade at 9.5%, so it’s never been more important for business to consider – why are people leaving and what can we do about it. In my experience there are always 2 reasons people leave a company the 1st is the polite, socially acceptable reason and the 2nd is typically a less palatable version of the first. Let me explain.
The 1st Reason
The first reason, the person is leaving your organisation is the polite reason that employees tell their managers and the general work population. This reason makes everyone feel good and it generally sounds something like,
“I am so sad to be leaving but this other role is just a great opportunity for career development”; or
“I hate to leave, but this new role is closer to home”.
These polite reasons are rarely questioned and certainly a contributing factor, however it is only part of the story and most likely the feedback that won’t spark any real change within your organisation. By settling for the 1st reason, we hurt our company by:
1. Robbing ourselves of the opportunity to learn more about our business and what it’s like to work within our organisation; and
2. If we aren’t delving deeper and seeking to understand things on a more profound level, we sign ourselves up for stagnation and nobody wants that!
The 2nd Reason
There is often a 2nd reason that the person has left your organisation which is generally where the gold is hidden. The second reason might be tied to the first reason and it's likely to be bit harder to admit. The employee wants to leave on good terms and feels uncomfortable to share the whole truth. It probably sounds something like this:
“I have been working really hard for that promotion you awarded to Gary. I was overlooked because I didn’t have the right experience and I don’t see how I will get to that position working here;” or
“I have brought up with my manager several times that I need more flexibility with my hours and its always fallen on deaf ears.”
As you can see gaining more insight into the 1st reason by hearing the 2nd reason provides the business with an opportunity to improve.
The benefits of obtaining the 2nd Reason include:
1. Acquiring constructive feedback to support your organisation to do better
2. Less time and money spent on recruitment related activities
3. Every time talent leaves your organisation you also lose company IP
4. People leaving can also be detractors, affecting your company’s reputation.
How to get the 2nd Reason?
So how do you get this information? The best way is through a formal exit interview process. This is where you provide exiting staff with a formal interview with an impartial employee (ideally HR) with standardise questions.
There are lots of resources available to put together a formal exit interview form, some great questions to ponder and get you started include:
1. What prompted you to start looking for another opportunity
2. Did you have the tools you needed to succeed / if not what was missing?
3. Has the role changed since you were onboarded?
4. Do you feel that your achievements were recognized throughout your tenure?
5. What suggestions do you have for the company? How could we have improved your experience with us?
6. Is there anything we could have done to change your mind about leaving
7. Would you recommend working here to your friends?
I hope this has prompted you to consider what reason’s you are listening to and whether this is providing your organisation the opportunity to grow and improve.
I’d love to hear your thoughts on Exit Interviews.
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