Many managers are scrambling to hold on to talent as the Great Resignation still looms over a post-pandemic world. During the past two years, companies have had a hard look at themselves to try to stop their most valuable employees from leaving. An exit interview seems like a sure-fire way to get to the bottom of the outflow. But is it an effective way of addressing the overall health of an organisation? Or is it merely a band-aid for the symptoms?

The purpose of exit interviews

In theory, exit interviews have two objectives: learning where the company can improve; and maintaining good relationships. And the overarching goal is to gather helpful information to bolster staff retention. But research by Harvard Professor of Business Administration Boris Groysberg and US Military Head of Behavioural Science and Leadership Everett Spain shows that an exit interview seldom achieves its goals because of two reasons (and I'm adding a third).

Reasons why exit interviews fail

1. Data quality

If the departing employee and their manager didn't see eye to eye, the information gained from the interview might be exaggerated, emotional and without context. On the other hand, the exiting employee may not be open or forthright about why they decided to resign. Since their vested interest is leaving with them, they may simply not feel it’s worth their time or energy.

2. A lack of consensus on best practices

Findings and recommendations from studies are ambiguous or conflicting. It also seems like many companies are either shooting from the hip or sticking to a rigid format of questions and answers that put the interviewee in a difficult position. Everett and Boris report how one HR leader summed it up: ‘Are they really going to tell you they’re leaving because they don't like their boss? Probably not, because they want references.’

3. Employers don’t use the information obtained in exit interviews

I'm adding this third reason based on my own experience. When data has been gathered and the employee has left, what happens from there? Regrettably, only a handful of companies process the information and apply what they've learnt. We know that exit interviews seldom reach their goal of improving retention, which begs the question: what can companies do to shift their focus while their employees are still invested? And how can they increase the likelihood of honest feedback?

What makes a good exit interview?

The answer lies in psychological safety. Psychological safety for employees is the certainty that they won't be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes. It’s a mental space where they feel comfortable to openly discuss their beliefs, fears and ask questions. It sets courage and candour as prerequisites for the employee and leader alike. In the process, they build trust and compassion.

In a psychologically safe space, employees can be invited to talk about interpersonal conflicts, salary expectations, workload management, role likes and dislikes, preferred leadership styles, training and development, career goals and their personal need for flexibility. No topic is off limits, and their manager or supervisor is receptive to feedback – but so is the employee. Such an environment aims to address concerns as they arise and to cultivate empathy on both sides. The dialogue is a continuing conversation that moulds the best possible working environment for everybody.

Of course, there are limits to what a leader can accomplish within a company’s parameters. And despite HR’s best efforts, retaining everyone is impossible – some talent will inevitably leave for a better salary or a growth opportunity. However, when they resign and have a good exit interview, the manager will gain insight into why they are leaving the organisation and the employee will be departing as a loyal alumnus.

However, the best exit interview is not just a once-off conversation. This is not to say that the standard exit interview should be scrapped altogether. If leadership lives by example and showcases openness, employees might be as comfortable being honest in the concluding debrief as they have been in their day-to-day work. If the exit interview is weaved into the employee’s work cycle as part of the bigger offboarding plan, the strategic value can be priceless.

Unfortunately, it’s often a standalone device meant to ease leadership's collective conscience that they've done all they can. If the exit interview is the only candid conversation a company has with its people, leaders need to ask themselves if they indeed want to know the answers in the first place.

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