Saying goodbye to employees is inevitable, but it doesn’t mean it’s easy.

There are multiple reasons why an employee may leave his/her position, including termination, redundancy, resignation, and the end of a contract. Today, redundancy is particularly common – as of July, Business Insider reported that 620,000 working Australians had been made redundant because of COVID-19.[1]

Despite the condition under which employment has ended, it’s vitally important that organisations deliver a consistent, compliant and positive goodbye. This can be done with a solid offboarding process that handles exiting employees gracefully. A large part of a good onboarding process involves an exit interview.

Why are exit interviews important?

Exit interviews are just as important as initial job interviews. They serve as information gathering tools where employers can gain a deeper understanding of the organisation though the eyes of someone in the coalface and capture sentiment as they walk out of the door.

Exit interviews can help determine the pulse of a workforce, the effectiveness of day-to-day processes and management styles, individual contribution and employee experience. Below are 3 reasons why exit interviews should never be skipped.

  1. Departing employees are likely to be more genuine when giving both positive and negative feedback and divulge truthful feelings about their time at the company.
  2. Feedback can help an organisation identify their strengths, weaknesses and room for growth.
  3. A well-structured exit interview will leave a positive lasting impression on an employee which benefits the employer brand. It also opens a space for the employee to feel comfortable returning to the company in the future, if they wish.

What an exit interview should entail

Exit interviews can fill in a lot of gaps about why the individual is leaving. Below are some questions that should be asked in the case of a resignation.

  • How long have you been considering your resignation?
  • What’s the reason behind your decision to leave your position?
  • If you have already accepted another position, what do you find attractive about your new role?
  • What did you like and dislike about your role, and what would you change?
  • How would you describe your relationship with your manager/supervisor? What could your supervisor/manager do to improve their leadership style?
  • What’s your impression of the company culture and work environment?
  • Do you feel your professional growth and development was supported?
  • Do you feel your wellbeing was supported?
  • Is there anything else you care to share about your time at our company, and any further feedback/suggestions about the way we do things?

When should exit interviews be conducted?

The offboarding process can be broken down in 10 steps. These are:

  1. Communicate the employees’ departure to the team
  2. Transfer the employee’s knowledge to their successor
  3. Recover company assets (mobile phones, laptops, equipment)
  4. Update your org charts and company directory
  5. Revoke systems access
  6. Complete final pay process
  7. Perform an exit survey or interview
  8. Provide letters of reference and exiting documentation
  9. Thank the exiting employee and make sure they feel appreciated for their contribution
  10. Engage the former employee in an alumni group

As shown above, the exit interview should take place after a number of other steps have been completed and ticked off, so that there is no unfinished business to attend to. To download the full Employee Onboarding Checklist, click here.

Using exit interviews as a compliance tool

Exit interviews can reveal issues relating to compliance and risk management. By asking the right questions, an employer can uncover unfavourable claims such as discrimination, workplace harassment, etc. which can lead to legal action and bad publicity. Dealing with such matters before the employee departs lessens the risk that the individual takes further action later down the line. Using exit interviews as a preventative measure protects the organisation as well as the employee.

Should exit interviews take place when the employer terminates employment?

Whether it’s necessary for exit interviews to take place in the case of involuntary termination (i.e. the employer has ended the employment) is contentious. For one, the employment may have ended because the employee in question was underperforming or breached their contract, in which many of the necessary conversations about the employment may have already taken place before the employee’s last day.

The subject is also sensitive in the redundancy scenario. If an organisation has had to layoff an employee, conducting an exit interview may appear crass. However, if the redundancy is dealt with respectfully, and the employee in question is given the option to fill out a short questionnaire on their way out (rather than sit through an exit interview) the organisation may still learn something valuable, and the employee may feel empowered.

Ultimately, exit interviews are a good opportunity for organisations to squeeze out some last-minute feedback from departing employees with the view to improving how they do things.

HROnboard, an ELMO company, offers a best-in-class software solution that reduces the amount of time HR teams and leaders spend securing the best candidates and undertaking the critical onboarding process for new hires. Our solution also helps manage internal employee role changes and can create a smooth and seamless process for exiting employees.

ELMO Software offers innovative cloud-based HR & payroll solutions to more than 1600 organisations across Australia, New Zealand and the United Kingdom, helping them to manage, engage, and inspire their people. Our solutions span the entire employee lifecycle, from ‘hire to retire’. This includes a comprehensive suite of complementary solutions that further enhance the onboarding experience, namely Recruitment, Learning Management, HR Core, Survey and Connect. For further information, contact us.

[1] “67% of Australians have experienced a change in their employment during the pandemic, according to new research”, Business Insider Australia, August 2020

Learn more about how ELMO can help your organisation.
Learn more about how ELMO can help your organisation.