Why are exit interviews important?

When one door closes, another one opens. While an employee’s notice of resignation is generally sad news, exit interviews provide a strategic opportunity for the company to learn from its mistakes. There are many reasons to conduct exit interviews, such as improving future retention rates or learning about gaps in company culture. In this comprehensive blogpost, our Canadian HR experts walk you through how to conduct an effective and consistent exit interview in five steps.

1: Assign an exit interview policy

The exit interview process begins long before an employee resigns. Exit interviews are typically voluntary, but you can improve employee participation by setting expectations early in the employee’s career at the company. An exit interview policy communicates that exit interviews are a standard part of offboarding and prepares employees for the process well in advance.

An exit interview policy should outline:

The purpose of exit interviews within the company.
The company’s general process for conducting exit interviews.
Who will be interviewed (for example, employees who voluntarily resign) and by whom.
How information collected from exit interviews (including employee responses) will be documented, stored, and shared.

Assign your policy to new employees along with other onboarding materials in their employee handbook.

2: Create a standardized process

Asking every interviewee the same set of questions in the same way helps you track information consistently so that you can identify patterns more easily. You should ask both qualitative and quantitative questions. These questions should cover how the company can improve retention in the future.

Exit interview questions Canadian employers should ask

Ask questions about the employee’s experience and opinions on the company’s:

Training and development opportunities
Compensation and benefits
Supervision and management
Work culture and work–life balance
Work environment and working conditions.

Exit interview questions you shouldn’t ask

Those that don’t offer insight into how to improve in the future
Those that are too personal
Those asking the employee to reconsider their decision
Any that involve office drama or gossip

Decide whether interviews will be conducted through an in-person or virtual conversation, through a questionnaire, or both. When making this decision, consider whether you would prefer employees to answer questions anonymously (for more honest feedback) or with an interviewer who can encourage them to elaborate when needed.

3: Plan and schedule the exit interview

Even with a standardized process, you can be flexible with some exit interview elements and tailor your approach for each situation. Before conducting the exit interview, consider the following:

Location: Whether you conduct the exit interview through a conversation or a questionnaire, ensure the employee can answer questions in a quiet, private, and distraction-free setting.
Time: There are pros and cons to conducting an exit interview before, during, or after the employee’s departure. Employees are more likely to participate when they are still employed by the company, but they may give more honest answers after their last day. Decide what works best for your organization.
Interviewer: Employees are more likely to open up to someone they trust, like their supervisor, HR, or a neutral third party. The interviewer should also be neutral and empathetic with strong emotional intelligence and active listening skills.

4: Conduct the exit interview

Opening

Before beginning the interview or providing a questionnaire, mention the following:

Exit interviews are generally voluntary. Thank the employee for participating.
Remind the employee why the company holds exit interviews and that any feedback they have—positive or negative—is valued.
Reassure the employee that they will not receive any form of reprisal for giving truthful answers to your questions.
Let the employee know they can skip any questions they don’t want to answer.
Inform the employee that you will be taking notes and remind them of how the information you collect will be kept confidential.

During the exit interview

If you choose to conduct an exit interview with an interviewer, they should:

Remain positive and neutral throughout the interview, even when receiving negative criticism.
Listen more than speak. The exit interview is a chance to learn, not to persuade the employee to stay or to offer personal opinions.
Take notes on the employee’s responses and job details: for example, role, supervisor, and department.
Encourage the employee to give full answers and ask them to elaborate when necessary.

After the interview

The employee’s responses may trigger other employer obligations. If the resigning employee informs you of any issues they experienced or witnessed involving sexual harassment, discrimination, or other unlawful activity at work, follow company policies and promptly investigate the issue. If you are unsure about your obligations, consult one of our Canadian HR experts.

Additionally, continue to protect the reputation of the employee. Confidentiality isn’t always possible, such as in small companies with low turnover, but follow company policies to avoid compromising the employee.

5: Analyse results

Conducting the interview is only part of the process. You also need to know what to do with employee responses. Compile the information you collected from each exit interview in one place, be it a spreadsheet or HR software. Then, look for trends and patterns:

Is there a specific manager whose direct reports are leaving at higher rates?
Are employees in a specific job category finding jobs elsewhere for higher pay?
Are departing employees leaving for the same reason, such as unaddressed workplace hazards, poor work–life balance, or lack of recognition?

Analyse different segments of your workforce, too. Sort the information you have by categories: for example, demographics, tenure, department, performance, turnover reason, and job title. Prioritize improving retention rates when turnover in a specific segment is more costly, more frequent, and contributes more to organizational strategy than in other segments.

Share results with authorized individuals in the company who can make organizational changes that will address turnover trends. Improving workplace practices based on employee feedback can reduce problems like active disengagement. Schedule regular opportunities (for example, quarterly) to share trends and insights and discuss solutions. Be sure to also highlight what’s going well according to employee feedback and build on those strengths.

Sample exit interview questions

McLean & Company found that regrettable turnover (employees who voluntarily quit but whom the company wished to keep) commonly happens for these reasons:

Career advancement opportunities;
Satisfaction with their job and responsibilities;
Base pay;
Skill development opportunities; and
How much they were able to use their skills in their job.

Ask employees questions related to these factors in the exit interview, such as:

How did your job duties and responsibilities compare with your current job description?
How could the company improve training for your role?
Do you feel the company made the best use of your knowledge and skills?
How would you describe the opportunities for career advancement at the company?
Do you feel you were appropriately compensated for your work?

Exit interviews are a valuable way to get insight into where your company can improve retention, but they shouldn’t be the first time you explore issues in your workforce. Ask employees about their engagement at the company and improve conditions before they submit a notice.

Is it mandatory for employees to complete an exit interview?

The exit interview is generally a voluntary part of the offboarding process unless the employee signs a contract that specifically states they will participate in the exit interview once they leave the company.

When should I conduct an exit interview?

The ideal time to conduct the exit interview will vary by organization. There are pros and cons to conducting an exit interview before, during, or after the employee departs. Decide what works best for your organization.

What questions should I ask in an exit interview?

Ask a combination of qualitative and quantitative questions about how the company can improve retention. You can target questions to the turnover patterns or trends you previously identified to understand why they are happening.

Where should I conduct an exit interview?

Exit interviews should be conducted in a quiet, private, distraction-free setting, such as a private office separate from where the employee usually works.

Who should be given an exit interview?

Company policies vary between organizations. Generally, exit interviews are reserved for all employees who voluntarily resign (including retiring employees), regardless of length of service.

Who should conduct an exit interview?

The interviewer should be someone the employee trusts and can provide truthful answers to without fear of reprisal. The interviewer should also be neutral with strong active listening skills.

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