When an organization separates employees, it can be be by layoff, termination, resignation, or end-of contract off-boarding.
Separation of Employees and Exit Interviews
Employee turnover is the ratio of the number of workers that have to be replaced in a given time period to the average number of workers.The cost of employee turnover is typically estimated to be 20% to 200% annual salary, for some positions (sales or managers) even higher. There are both direct and indirect costs. Direct costs relate to the out-of-pocket leaving costs, replacement costs and transition costs. Indirect costs relate to much higher losses in production, reduced performance levels, unnecessary overtime and low morale, but are much harder to measure
Separating employees also reduce the productivity of an entire work unit/team, particularly as a result of uncompensated extra workload, stress and tension caused by turnover. If exit interviews are conducted strategically, a company can tap into why they are losing employees, and ultimately take actions to reduce turnover. Employees don’t just wake up one day and decide to quit a job that they’ve held for years in most cases their motivation for leaving is measurable. The only way to access this information is through an exit interview
Since you will likely separate employees for the entire existence of your organization, buying separation management software, or setting up a separation management system can reduce paperwork and ensure consistency. If you need to deliver an employee termination notice or receive a notice of employee resignation, an employee separation guide will help ensure all key steps are followed
About Employee Exit Interview
The exit interview is the single most powerful instrument to pinpoint the issues that drive employees to separate from their employer. At only this time in the Employee Life-Cycle you can accurately capture, “Why do our employees leave?”. At all other stages of an employee’s tenure, this answer is theoretical. When an employee resigns, it is measurable.
An exit interview is a survey instrument that allows an organization to collect information on employees’ perceptions about their jobs, the way they are treated by their managers, and the way they interact with their peers. Exit interviews also indicate to employee exits that their employer values their opinion and their contribution to the organization. Exit interview feedback allows both the organization and the employee exit to maintain contact with one another as a means of future networking relationships. This feedback is most valuable when it is collected soon after the notice of employee resignation, when decisions and reasoning are still at the forefront.