In fact, the Center for American Progress Issue Brief published an article in 2012 based on numerous case studies that found the typical (median) cost of turnover was 21% of an employee’s annual salary. Gallup estimates that Millennial turnover costs the U.S. economy $30.5 billion every year.
This makes having a strong exit interview process in place essential that can improve career development, look at company culture and find out why you are struggling to retain your best employees.
The folks at Glassdoor conducted a list of top four reasons to conduct exit interviews.
1. Are you offering opportunities for career development?A 2016 study by the research arm of Glassdoor found that job stagnation leads to high employee turnover. "Adding an additional 10 months in a role increases the chances of an employee leaving the company for their next job by 1%," the data showed. And employees are about three times more likely to leave for a new employer than to stay and move into a new role at their existing company. An exit interview can help you figure out why good, motivated employees are leaving.
2. Do you have a management problem?It can be difficult to figure out if a manager is the cause of someone leaving. However, a steady exodus could be caused by management problems that haven't been flagged in other review processes. In fact, Gallup found one of the most common reasons for people to leave was problems with a manager or management.
3. Money, compensation and benefitsEmployees want to feel like their contribution is valued and if they can receive better compensation elsewhere they will seriously consider it. Make sure your remuneration strategy is up to date and offer them the best you can. Find out during the exit interview what employees really want and consider checking our salary guide for more insights.
ALSO READ: Are you underpaid? Hong Kong salary checklist 2018
4. Company reputationMore and more employees want to work for socially responsible companies where their culture and ethics fit with the employee's own values. By asking for honest feedback from a departing employee shows the company's interest in improving. You can gather information to find out if the company has fallen short in terms of branding, reputation or stated values.
ALSO READ: 12 essential exit interview questions
Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!