Exit Interviews: The Unexpected Goldmine for Business Growth!

<div class="grey-callout"><h2>Key Takeaways</h2><ul>
<li>Offsite interviews: Holding exit interviews offsite on the last day encourages candid feedback and avoids workplace interruptions.</li>
<li>Single interviewer: Only one person, ideally not the problematic manager, should conduct the interview to avoid a biased or intimidating atmosphere.</li>
<li>Setting the tone: Begin with reassurance, empathy, and a clear request for honesty to gather valuable insights.</li>
<li>Follow a script: Be thorough in questioning to uncover deeper issue.</li>
</ul></div>

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Exit Interviews are Essential

On an employee’s last day, many simply leave. They’ll probably have a heartfelt conversation with their colleagues and discuss catching up in the future (they rarely do). But they never have a proper conversation with senior leadership about their real reasons for leaving. When they walk out the door that last time, all their insights about how the business might be improved go with them.

That is why Exit Interviews are a SECRET part of my recruitment and business strategy. 

An Exit Interview is a meeting between a departing employee and a business representative. Its primary purpose is to get feedback on the firm’s hiring and management, and (if they were not made redundant) to find out what contributed to the employee’s departure. The insights gained can profoundly improve recruitment, management, and the overall business.

When and where to hold an Exit Interview

It’s best to hold Exit Interviews offsite. Departing employees often feel more comfortable sharing their thoughts when they aren’t in the work environment, and you won’t need to worry about being interrupted.

I recommend holding Exit Interviews on the last day of employment. By this time, there will be less fear that an employer will make a departing employee’s life difficult, so they will be candid. Information will also still be fresh in their minds, and they will offer more valuable insights.

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Who should hold an Exit Interview?

I recommend that only one person from the organisation hold an Exit Interview. Otherwise, it can feel like an inquest. 

Ideally, the employee’s manager should host it because their knowledge will allow them to probe more effectively.

However, suppose the employee’s manager is potentially the problem. In that case, it is inappropriate for them to attend – the manager might filter out key findings or be less inclined to share them. If this is likely the case, find someone more senior or from human resources. If you don’t have anyone suitable, consider using a non-executive director, recruitment advisor, or HR consultant.

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What to say in an Exit Interview

You must set the right tone so that the departing employee feels comfortable:

• Provide reassurance: Everything they say may be treated as confidential (using “may” gives you an opt-out).
• A future reference will be given: You don’t need to mention whether the reference will be positive.
• Use an empathetic tone and choice of words: Show compassion for their situation.
• Make it clear that you are sorry to see them leave: The business wants to improve and prevent further employees from leaving.
• Request honesty: For the conversation to succeed, you need honesty. This is an excellent opportunity to create a positive, lasting impression.

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<span class="grey-callout"><span class="text-color-purple">Warning:</span> A common mistake is not being thorough and failing to ask follow-up questions. This is usually because:
<ul><li>You are negatively biased: You no longer trust the employee, and since announcing their departure, you can only see the “bad” side of them, so you don’t value what they say.</li>
<li>Your reputation is at stake: You’re concerned that by delving deeper, the employee may say something that reflects poorly against you.</li></ul>

If either of these points could be an issue, you aren’t the best person to host an Exit Interview.</span>

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A typical conversation would start with, “Thanks for taking the time to meet me. I want to start by saying that everything we discuss here may be treated confidentially, and we will happily provide a future reference. Naturally, I’m really sorry to see you go, and I’d like to learn from this experience because what we discuss today could help the business improve. Clearly, I need you to be really honest. Don’t worry about offending me – please tell me what I need to hear. Does this sound okay to you?”...

Before they joined your company:

• “I’d like you to think back to when you accepted our job offer. With the benefit of hindsight, where perhaps did we not meet your expectations?”

The role:

• “What is it you particularly enjoyed about your job?”
• “What did you not enjoy or could have been improved?”
• “What was a source of frustration?”
• “What stopped you from getting your job done effectively?”

The company:

• “Overall, how well do you think our staff are treated?”
• “What could we do to improve how staff feel about working here?”
• “How could you have been supported better?”

The customers:

• “How do you think we could do a better job of helping our customers?”

The competition:

• “What are our competitors doing better than us?”

Reasons for leaving (don’t ask if you’re making them redundant):

• “I know we’ve discussed this before, but just to make sure, what are your reasons for leaving us?”... “Why else?” (Suggest other reasons that may have influenced their decision if necessary.)
• “What are you hoping your new job will offer you?”

Priorities:

• “If you were in my position, what’s the one thing you’d start working to fix?”... “What would be next on your list?”

Is there anything else?

• “Is there anything in the organisation you think I should know about but may not see?” (Listen carefully - this question can encourage “whistle blowing”.)
• “Is there anything else you’d like to discuss so that we can improve the business?”

Finally, what about you?

• “Obviously, no one is perfect, myself included. Have there been times when I’ve said or done something that has frustrated you?”
• “What else would you recommend I improve on?”

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Remind the employee of restrictive covenants

At this point in the meeting, it may be worth reminding the employee of any restrictive covenants.

These clauses in an employment contract restrict an employee’s ability to compete with their former employer after their employment ends. Typical clauses include prohibiting employees working for a competitor, poaching other employees, or disclosing confidential information.

It’s worth consulting an employment solicitor as restrictive covenants aren’t always enforceable. A judge may decide a clause is unreasonable if it applies for too long, is too wide-ranging or is overly restrictive. They’re more likely to be enforceable for restrictions on sharing trade secrets than those preventing someone from earning a living. For this reason, solicitors typically recommend that boilerplate restrictive covenants be reserved for senior leadership.

I often find that reminding employees of these contractual clauses is sufficient to encourage the behaviour you want because it can be time-consuming and expensive for them to contest it.

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Outcome of an Exit Interview

The feedback you receive may leave you thinking that the employee is deluded and feeling glad they’re leaving. However, very often, I’m amazed by how objective and balanced the feedback is. Sometimes, I’m shocked by the insights – there are so many things I didn’t know. During one Exit Interview I hosted, an employee turned whistleblower and informed me that an accountant had taken over £400,000 out of the business! (The accountant eventually ended up in jail for two years on fraud charges.)

When staff see a colleague leave, they may lose confidence in the organisation. To reduce this contagion, I recommend prioritising points raised about how staff are treated, how they feel, and how they can be better supported.

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Diarise a call with the departing employee

Losing a Great Performer can be extremely costly to a business, but there may still be a chance to rescue the situation.

Put a reminder in your diary to call them unexpectedly one month after they’ve left. There’s little point in asking how their new job is going because it’s human nature not to admit a mistake. Instead, approach the conversation by asking, “Hi {name}, I was just thinking about you and how much we miss you on the team. So I thought I’d call and ask if we could do anything to welcome you back?”

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Additional Resources

• Recruiting Book; The Secrets of Great Recruitment: How to Recruit Great Employees.
• Downloadable PDF guide; Discover the Power of Exit Interviews: Gain Insight to Improve Your Workplace.
• Downloadable script; Script for Exit Interviews.
• Article; How to Conduct an Exit Interview: Gathering Valuable Insights from Departing Employees.