An employee exit survey helps identify reasons for voluntary employee turnover. The cost of employee turnover can be extensive and high turnover can easily destroy profitability and decrease market share. Employee turnover costs include lost productivity, both of the lost employee and those who must cover that employee’s work, recruitment costs to find a replacement, training for the replacement, new hire costs, and more.
So, how do you minimize turnover? First, you need to determine why people are leaving. Yes, you can ask them when they submit their resignation, but they may be hesitant to tell a poor manager that he’s the reason. The best way to understand why people leave the organization is through an employee exit survey conducted by an unbiased third party. Employees should be surveyed as close to their exit date as possible to maximize response rate.
A well-designed employee exit survey provides valuable insight into the reasons why employees leave and helps you identify and address those problem areas within the organization. Are employees leaving because of managers, career development, compensation, or personal reasons? Is turnover higher among certain employee populations such as specific job functions or generations?
Armed with information about why people are leaving allows you to address those issues to reduce turnover, improve employee engagement, morale, and productivity.