Especially for employers, an exit interview can be an extremely valuable tool for improving your business, both internally and to your clients or customers. Whether an employee leaves to pursue other opportunities, gets let go or terminated, or quits in frustration, knowing how he or she feels about their employment experience can tell employers a lot about the work environment, specific job functions, supervisors, and company policies and procedures. Above all, the information retrieved through exit interviews should be regularly reviewed and evaluated to look for consistencies that can help with employee retention.

Whether performed in-person or via electronic survey, here are five key reasons exit interviews are a must for every employer.

Improved Company Culture

Management guru and author Peter Drucker is often attributed to the popular quote, “Culture eats strategy for breakfast,” and there’s a reason this quote is resonating with employees and employers in today’s work environment. Employees today desire a work environment that is flexible, friendly, and fun. Employers realize that company culture matters, and they want happy employees and productive employees. Since exiting employees will tend to be more honest than current employees, exit interviews can offer employers a candid perspective into some of the positive and negative characteristics of a company’s culture, which allows the opportunity to make necessary adjustments and improvements, if needed.

Insight into Management Performance

Since most employees never get the opportunity to evaluate their supervisors and managers, exit interviews can often give employers valuable insight into the performance and effectiveness of company leaders. As employers want to make sure they have the right leaders in place, exit interviews can offer eye-opening insight into potential management issues that may need to be addressed or resolved.

Opportunities to Fix Issues

While certain company policies or procedures have the best of intentions, exit interviews can sometimes reveal issues or inconsistencies that might require adjustments or changes to be made. In addition to company policies, exit interviews can also shed light on potential issues with company equipment, resources, or technology that cause frustration or problems for employees.

Accurate and Up-to-Date Job Descriptions

Accurate job descriptions will go far with an employer’s recruitment and onboarding efforts. Exit interviews can help employers know and understand if, and when, a job description needs updating or tweaking to make sure that a new hire will know if he or she is properly equipped and qualified for a role.

Employee Retention

Every employer understands that employee retention is important for both a company’s reputation and bottom line. Losing and hiring employees can be costly due to potential payouts for exiting employees and training for incoming employees. Employers who make the most of exit interviews can easily identify consistencies that can help reduce employee turnover and improve workplace and organizational structure and culture for all.

Are you using exit interviews to the fullest potential for helping improve your business? Our HR experts at LBMC Employment Partners are ready and willing to offer insight for making the most of exit interviews. Contact us today to learn more!