Exit Interview

Exit interview is held with an employee who is due to leave an organisation. Its basic objective is to identify the reasons for which the employee is leaving the organisation and to take corrective actions to overcome those reasons. Many companies have taken exit interview very seriously because of high employee turnover. Ex : Whirlpool.

Issues In Exit Interview

It must decide the person who will conduct exit interview. Generally, exit interview is conducted either by HR personnel or direct superior of the employee concerned. Another issue is the timing of conducting it. Some companies prefer to conduct it at the last day of the employees tenure while others prefer to conduct it earlier.

 The third issue related to exit interview is its formal text, that is whether it should be structured one, in depth or unstructured one. The last issue in exit interview is the analysis of results and to design action plans based on such an analysis. But there are few major problems in exit interview like: Many organisations do not take it seriously. Existing employees do not disclose all negative factors.

Employee Turnover
Employee turnover is the rate of change in the working personnel of an organisation during the specified period. It signifies the extent to which old employees leave and new employees enter into service in a given period. It can be calculated in quantitative manner and quality also has its relevance.

Causes Of Employee Turnover

Employee related factors : 1. Job hopping tendency among individual particularly at the initial stage of the career. 2. Too much ambition among individuals leading to a state of never being satisfied. 3. Dissatisfaction from the present job and the organisation. 4. Better career opportunities 5. Tendency of home sickness. 6. Tendency to start own business.

 Organisation related factors: 1. Incongruent organisational culture resulting into conflict between the individuals and the organisation. 2. Faulty human resource policies and practices particularly related to the compensation, promotion, training and development etc. 3. Poor leadership and supervision. 4. Poor working conditions. 5. High and unrealistic expectations.

Effects Of Employee Turnover

Cost to organisation: 1. Hiring cost involved in recruitment, selection and placement of new employees. 2. Cost of training and development. 3. Loss of production in the intervening period in which the position remains vacant. 4. Socialisation cost of new employees. 5. Adverse impact on the existing employees morale. 6. Loss of prestige of the organisation.

1. 2. 3. 4.

Cost to employees: Frequent job changes resulting into loss of long-term benefits like provident fund, pension, gratuity etc. to employees. Socialisation process with the new work environment resulting into lower productivity. Frequent dislocations affecting personal and family life adversely. Loss of employees creditability because of frequent job changes.