New York, NY, January 4, 2005 –
“I received a better offer.”
How many times have you heard this
phrase? When pressed for a reason, many employees say
that they are leaving their job for a larger paycheck.
While compensation most likely figures into the
decision, dollars are typically not the only reason an
employee will terminate their relationship with an
employer. Oftentimes, employees leave due to a lack of
professional development, dissatisfaction with
supervisors or co-workers, or lack of career
advancement.
If predictions are correct, employers may
be hearing “I received a better offer” more often in
2006. According to Working in America: The
Disgruntled Workforce Survey,
http://www.shrm.org/ema/news_published/CMS_014369.asp
77%
of the more than 1,000 workers polled in the online
survey are unhappy in their current position and are
either actively or passively looking for a new job. The
survey also revealed that 46% of those polled would
consider leaving their current employer if the economy
continues to improve.
According to the Society for Human
Resource Management (SHRM),
www.shrm.org each employee who leaves a company
generates a significant cost. Conservative estimates
place that cost at 50% of an employee’s salary. The
potential cost, however, can be up to 300% of an
employee’s annual salary. Besides the monetary impact,
it’s important to remember that every time an employee
resigns, they not only walk away with their valuable
skills and knowledge, but also may leave unfinished
projects and lowered morale in their wake.
All is not lost for a company, however.
Employers have a chance to gain insights on ways to
improve their workplaces and lower turnover by
establishing an exit interview process for departing
employees.
“Employees who have resigned may be less
hesitant than current employees to speak the truth on
organizational issues. Plus, their exposure to other
organizations may provide them with additional insights
that could be valuable to the company,” explained
Jennifer C. Loftus, SPHR, CCP, CBP, GRP, National
Director, Astron Solutions.
Still, ex-staffers may be uncomfortable
with the idea of giving honest feedback directly to
someone in their former organization for fear of
“burning bridges.” The outsourcing of the exit
interview process to a neutral, third party firm allows
former employees to remain completely anonymous while
freely sharing their opinions. The interview questions,
which focus on what they liked/disliked about their
jobs, reasons for leaving, and suggestions for changes,
can be administered either via paper forms, the
Internet, Interactive Voice Response (IVR), or a
combination thereof. Once the responses are gathered,
employers can see what areas in their workplace are in
need of improvement or change, and create a plan of
action.
Follow through is the most crucial
element of the exit interview process. “If management
chooses not to address discoveries unearthed during exit
interviews, lower employee morale may result. Employees
and former employees often keep in touch. Word can
spread about the impact of employee comments on
organizational change. Without some management action,
time, money and effort spent in gathering data may cause
a negative reaction from current employees,” added
Loftus. Even if management cannot institute necessary
changes right away, it is crucial that issues are noted
and addressed.
Although it is easy to simply dismiss
former employees, smart employers understand that
feedback can provide a wealth of vital information
imperative to overall organizational success. Exit
interviews put this information within your grasp. Take
hold of the facts before the negative aspects of
turnover take hold of you.
Astron
Solutions is a consulting firm dedicated to the delivery
of HR services and supportive technology. For more
information about how we can help your organization,
please call Astron Solutions at 800-520-3889 or visit
www.astronsolutions.com.