How and When to Use Exit Interviews
Written by:
Donna Flagg
Article Overview: As we come off the “expansion” phase of business and commerce in this country and face serious “contraction” with layoffs in record numbers, will companies have the wherewithal and be organized enough to collect employee feedback as part of their broader exit strategies? It remains to be seen.
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How and When to Use Exit Interviews
As we come off the “expansion” phase of business and commerce in this country and face “contraction” with layoffs in record numbers, will companies have the wherewithal and be organized enough to collect employee feedback as part of their broader exit strategies?
Exit interviews are important, but a tool often overlooked that can be hugely informative in managing human resources, effecting change and stimulating organizational growth. They are, and should be, intended to help inform better decisions for a company and its future. But when deciding whether or not collecting feedback on the last day of someone’s employment makes sense for your business, consider if you will realistically do something with the information. Otherwise if not, it’s a complete waste of time. The other thing to bear in mind is that the feedback your employees provide when they walk out the door is data, just like any other information you’d collect doing “real” research. So unless you can build a research-type based system, with checks and balances and mechanisms for consistency around the process, don’t bother. All the data will just languish about. If you do decide to execute an exit interview strategy, here are five tips to employ which can make or break your effort.
1. Establish a set series of questions, so that you collect consistent data. Any comparisons of feedback need to be made on an “apples-to-apples” basis.
2. Divide your questions into categories like compensation, management, job satisfaction, development opportunities, work environment, etc… Think of surveys you’ve taken in the past. It’s the same idea.
3. Blend qualitative feedback with quantitative, but again make sure that the questions asked are consistent across the board. Don’t forget to ask, “What could/should we have done differently?” But here you have to genuinely want to know the answer and be open and objective to whatever response you get.
4. Identify trends, themes and patterns and decide which are the most prevalent, relevant and serious.
5. Design programs that address any shortcomings and devise, then implement strategies that drive the necessary changes forward.
At the end of the day, perhaps the most valuable contribution of the information gleaned from exit interviews is that it can help keep you from making the same mistakes twice, three times and more.
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Article Tags:
business and commerce,
checks and balances,
compensation management,
complete waste of time,
consistent data,
contraction,
development opportunities,
employee feedback,
exit interview,
exit interviews,
exit strategies,
expansion phase,
interview strategy,
job satisfaction,
layoffs,
management job,
managing human resources,
record numbers,
waste of time,
work environment
About the Author: Donna Flagg
RSS for Donna's articles - Visit Donna's website
Donna Flagg spent over 15 years in business before
founding The Krysalis Group, a consulting firm specializing in
management, marketing, training and sales and their respective
relationships to business results. Her management career began in sales
at CHANEL, and before branching out on her own, she spearheaded a new
training function within the Investment Banking Division at Goldman
Sachs.
After earning a BA from Rutgers University and gaining experience on the front lines of Corporate America, Donna went on to attend New York University's Graduate School of Education where she obtained a master's degree in Organizational Development and Human Resource Management, and a post graduate degree in Business Education. She has also been a speaker at City University of New York (CUNY) and New York University through Stern Business School and Delta Pi Epsilon, a national honorary professional graduate society in business education and training. In addition, she speaks at various conferences including those conducted by The Business Leadership Network and The Conference Board, where she was also on the advisory committee for the Enterprise Learning Strategies Conference. For her communications expertise, Donna was invited to be a host at the Liz Claiborne Leadership Offsite to discuss branding during their "Progressive Dinner" event and more recently, a speaker at the Inc. Leadership Conference in Dallas, TX.
Donna is the author of Surviving Dreaded Conversations and is blogger on Pyschology Today and The Huffington Post.
She is frequently featured in the press for her workplace expertise in
outlets including CNBC, the New York Times, WOR, and XM Satellite
Radio.
Donna currently sits on the Board of Directors
of the Randy Foye Foundation where she actively participates in its
mission to assist children and families in Newark, NJ.
Click here to visit Donna's website

More from Donna Flagg
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HR Departments Making Structure Make Sense
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- Regardless of the industry they may be in, it seems all small business owners and entrepreneurs face similar key challenges in growing their business and becoming as profitable as they would like. These can be grouped into the categories of "Time", "Team", "Money", and "Exit Strategy". What has been your most significant challenge, the one that seems to be your biggest hurdle to moving forward and achieving the level of business success (however you define that) that you would like to? If you could have one issue solved in your business, what would that be?
Your insights are invaluable and I appreciate your honesty.
Regards,
Gavin
Re: Question: What has been your biggest business challenge?
- [quote="gcr1976a":1niq7gnj]Regardless of the industry they may be in, it seems all small business owners and entrepreneurs face similar key challenges in growing their business and becoming as profitable as they would like. These can be grouped into the categories of "Time", "Team", "Money", and "Exit Strategy". What has been your most significant challenge, the one that seems to be your biggest hurdle to moving forward and achieving the level of business success (however you define that) that you would like to? If you could have one issue solved in your business, what would that be?
Your insights are invaluable and I appreciate your honesty.
Regards,
Gavin[/quote:1niq7gnj]
The biggest hurdle for moving forward and achieving the level of business success for me is getting enough traffic to my website a day. There are many ways to do this, and there are many "perfect plans" out there, but doing so is a lot harder than it seems. That's why I must keep trying.
Different Types of Funding
- Finance for business can be obtained through a number of different sources.
Let's review some of those channels to help you decide what's right for your business needs:
Grants
There are over 930 different EU and UK grants and loans available from over 100 issuing bodies. This is the cheapest form of finance and an important part of the funding package that companies and individuals need. We can help you find your way through this maze.
Technology
Micro Projects: 50% of eligible costs up to £20,000
Research project: For a technical and feasibility study of an innovative idea for new technology 60% of costs up to a grant of £75,000.
Development project: For development up to pre production 35% of costs up to a grant of £200,000
Developing an innovative idea: valuable for small companies and individuals at the start of a technical project: 75% of costs of hiring a mentor and consultants.
Export
To start exporting or moving into new markets grants of 50% of costs up to £20,000 each.
Training and Education
Knowledge Transfer Partnerships, Achieving Best Practice in Your Business, Investors in People
Modern Apprenticeships
New Deal for various grants.
Environment
BOC Foundation for the Environment: 25% to 50% of Project cost, typically £20,000 to £100,000
Clean up Fund: Emission reducing equipment up to 75% of cost
Community Chest Fund: Up to £25,000 for projects near active SITA sites
High Impact Fund: £150,000+ for larger projects near SITA sites
Assisted Areas
Regional assistance grants of between 10 and 35% for capital expenditure in less favoured areas of the UK.
Loans
Loans are an excellent source of finance if you have suitable security to borrow against or a reliable earnings stream. This needs to be planned and presented well to obtain funds.
Credit cards
Provides up to 56 days free credit if you play the game!
Overdraft
Banks are surprisingly supportive when presented with a well thought through plan and competent management.
Bank Loans
Lenders tend to look for a good business plan and security. Typically the loan is approved by a centralised back office function rather than the person you meet. Terms and rates depend upon the risk. Repayments can be very flexible to meet your specific needs.
Mortgages
These can include flexible repayment terms to meet your business needs. This can even be incorporated into your overdraft finance so that you have one flexible account for both personal/ business mortgages and overdraft
Small Firms Loan Guarantee Scheme
Up to two years trading: Up to £100,000
Over two years trading: Up to £250,000
However these are difficult to obtain and are a loan of last resort.
Export Guarantee Scheme
This is government backed insurance against appropriate export documentation.
Mezzanine
This is a halfway house between loan and equity. It can be an innovative way of raising funds for the more established business. Mostly for expansion capital.
Equity
This is not as easy as the papers would have you know. Only 1% of business plans received by Venture Capital Funds are successful. However, a good business proposition consisting of a strong demand for the product or service, management track record and a sound financial plan will enhance the chance of success.
Business Angels
These are high net worth individuals who are successful businessmen looking for investment opportunities. They can provide both time expertise and money. Typical investment size is £25,000 to £250,000 but can go as high as £2m for the right opportunity. Exit within 3-5 years.
Venture Capital
These are investment funds seeking high rates of return. However typically investments are over a million pounds. Some funds are targeted at lower amounts depending upon the sector and region. These funds are looking for exponential capital growth over 3-5 years.
Asset backed finance
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Leasing
This will cover your capital expenditure and spread the cost over a three to five year period. It is particularly useful if you do not have taxable profits to maximise your capital allowances.
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Factoring
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Trade Finance
This is funding provided against stock purchases, signed contracts and orders whereby the funder will prepay a certain percentage of the value
Pension fund
It may be possible to use your pension funds for a loan back to the business
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