Recently the management of a financial services firm was zapped by its killer attrition rate. Too many wickets had fallen over a single month—where was the firm’s management going wrong? Fortunately, there was the data from the exit interviews. The information culled out spoke louder than any griping employee. It revealed that the firm’s first three months’ target was too high. No one had managed to achieve them. Result: employees felt de-motivated and eventually called it quits. The firm kicked into action and re-structured its expectations, performance metrics and goal posts. The attrition rate was stemmed, almost immediately.

Exit interviews are a management tool. They help identify reasons why people leave an organisation,” says Shalini Gupta, director, Talent Mappers Consulting India, an human resources (HR) consulting firm.

“But, the usefulness of the interviews depends on how fairly they are conducted,” adds Chanchal Singh, senior HR manager of a leading financial services company.

Exit interviews work provided that the conversation carried out is exploratory and insightful. And, employers should keep in mind factors to gain from the exercise. “Exit interviews give companies the great opportunity to learn how to improve working conditions,” adds Gupta. Sadhna P., an assistant HR manager in the Sopra Group, recently wrote on a business networking site, “Each exit interview we conduct is documented the very next day. Key points are discussed by the management team. And, if need be, an action plan is decided.”

When employees are reluctant to really speak out, it is the HR department’s responsibility to break the ice. “They need to be assured that the information will not be misused,” suggests Singh. The venue of the “interrogation” often sets the stage. In pure corporate structures, it is preferable to conduct exit interviews in the centre of the work area, basically a familiar environment. This puts the interviewee at ease and doesn’t make them feel that they are at HR’s receiving end.

It’s important to pick the right interviewer. Himanshu Vijay, a food and beverage associate with the Taj Group of Hotels in Chandigarh, recalls why his exit interview was such a breeze. “The HR executive was a young guy, too, and a work buddy. We had an informal discussion and I could be honest about my reasons to quit and plans going ahead.”

Not everybody agrees that the “hanging out” approach works.

Interviews should be conducted by a person who is a few grades senior in designation or age,” believes Kishor Bhalerao, senior vice president of HR at Persistent Systems, a Pune-based IT solutions provider.

True that a “senior” might inhibit a candidate’s frankness. But, Bhalerao believes this obstacle can be overcome by asking open-ended questions and doing a lot of listening.

There is the danger that the process becomes subjective so a standard template, which can be customised, should be put in place. Basically, an exit interview should be transformed into a reverse-appraisal of the company, opines P. Sanchet, a technical specialist at Persistent Systems. He recommends putting a 10-point or 20-point survey as a mandatory procedure to get relevant inputs.

In fact, Persistent Systems has been able to leverage feedback effectively. “We found that employees were leaving to be nearer to their hometowns. Suddenly Puducherry, Gurgaon and Noida were the hotter places to work in, instead of a Bengaluru or a Chennai,” reveals Bhalerao.

Ideally, a firm’s in-house HR department should carry out the interviews. But, larger multinationals and corporates rely on external consultant. In smaller companies they are conducted by either the founder or a senior manager. Gupta and Singh believe only seasoned HR professionals can really capture feedback.

Getting the data isn’t enough. Companies should analyse findings to identify “real” issues. “Action plans should be based on the commonality of the interviews,” advises Bhalerao. You can’t strike of a certain policy just because it didn’t work for a few people. Analyse issues holistically—and objectively. “An exit interview shouldn’t only be about identifying the negatives,” says Raviraj Rajesh, head for HR at Cyber Media—a Gurgaon-based media house. Good feedback helps in establishing benchmarks. “Many of those who left us told us it was a great learning experience and that the bosses were friendly. They helped us strengthen our positives.”

Convert the loss

Can’t keep that employee? At least, keep your cool. Avoid these faux pas during an interview.

Don’t be overly sensitive on hearing the negatives.

Don’t take an employee’s feedback to be the ultimate truth.

Don’t lose objectivity.

Don’t treat this as a mere “formality”.

Don’t let line managers or direct bosses conduct inter views. Hire outside consultants, if need be.

Putting it well

What should an “ideal” exit-interview questionnaire contain? Should it be open-ended, or closed? And answers, should they be subjective or objective? Here are a few must-haves:

Name the top three things you liked and disliked about the firm.  

What growth opportunities did the organisation provide you with?    

How did the establishment support you?  

Will you be willing to come back to the organisation again?