The direct purpose of an Employee Exit Survey is to avoid having to constantly hire and
train good employees by increasing employee retention. Employee retention should be an
integral part of any organization's business plan. A high turnover rate can be a huge
financial and psychological drain on a company.
Are employees leaving due to external or internal issues? Is it something in your control?
Is there something within the company that may be driving employees away? Is the competition
offering more money or a better opportunity?
Studies have indicated that it costs around $3500 to replace one $8.00 per hour employee,
over 20% of their annual pay. Factors include recruiting, interviewing, hiring, training,
reduced productivity, and more. Estimates are higher for more skilled employees; 30-50% for
entry level salaried employees, 150% for mid-level, and up to 400% for specialized, high level employees!
In order to keep your best people, you need to determine what motivated those who have left your
company's employ in the past and you need to do so in an effective and efficient manner.
A superior employee exit survey can:
- Increase employee retention
- Reduce strain on Human Resources
- Reduce training expenses
- Reduce strain on your other employees who will temporarily cover ex-employee's tasks and train newcomers
- Increase productivity
Conducting this type of survey in-house is fraught with difficulties. If given haphazardly or by a
fellow employee, results are likely to be skewed. The soon to be ex-employee is looking towards
their new position and not likely to give the survey a lot of consideration or merit. A systematic
approach is necessary to obtain good actionable results.
It could be that the cause is one that is easily corrected. Employees often cite job enjoyment
and supervisor/management relationships over direct compensation when asked what they look for in a job.
Is that the case in your company? You will never know unless you ask.