Conducting an Exit Interview
Written by:
John M. Beane
Article Overview: An exit interview can be a great way to improve the hiring process by finding out what needs to be different initially. Should you hire a different kind of person, should the process be modified, what caused the mismatch between the person leaving the firm and their job.
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Conducting an Exit Interview
The exit interview provides us with a good mechanism to take a hard look at how a company is perceived. Since the employee is leaving, they will often be more open and frank in their discussions about the company as long as they understand they either get a good recommendation or do not regardless of what they say. If they fear you would not give them a good recommendation then they will lie to you in order to get the recommendation. So making certain they understand the ground rules is imperative for the exit interview to succeed.
Here are some thoughts on the exit interview for you:
1. Interviews can be conducted orally or written. I prefer the oral interview since you can get better information and may see an opportunity to delve deeper into certain areas.
2. Think carefully about the information you would like to get before the interview. What is it you are trying to ascertain. This greatly increases the odds of a successful interview. Develop a series of questions you can use.
3. Save the hardest questions for the latter part of the interview. Work up to the tough stuff!
4. A good question to break the ice is ‘would you like for us to be a reference/recommendation for you’? Do not make this offer if you would not recommend the employee!
5. Be prepared for some bombshells. Expect the unexpected – if it ever is to happen it will happen in an exit interview.
6. Carefully select the interviewer. Look for someone that listens well and is open-minded. It serves no purpose for the interviewer to get into an argument to defend the firm with the departing employee.
7. Throughout the interview stay focused on the employee!
8. Look for open-ended questions that allow for plenty of expression. An example of this might be “How did you feel you were managed during your employment with us?” or “How do you feel the company is run.”
9. Other excellent questions are "Under what conditions would you have stayed?" and "If you had a magic wand, what would you have changed?"
10. At some point in the interview ask "Why are you leaving?" if they have not already given you the why.
11. Good general questions are "What did you like most (least) about your position?"
12. Try to find out if there were things the departing employee would suggest to improve conditions, production or morale.
13. Try to get a good feel for how they viewed their compensation and benefits package.
14. Leave room at the end of the interview for general comments.
15. Take notes of the high points. Get the general idea – it is not essential to get exact quotes.
It is more important to listen than write.
16. Immediately after the interview determine if you would rehire the employee. Assume they will reapply.
17. Make use of the information gathered. If you do not use this new information then why do an exit interview?
People can be helpful in numerous ways, many times, without even realizing they are helping us, so use that help to make your workplace a better place.
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Article Tags:
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- Thanks Evan for this great Interview and I will be pleased to be part of the new forum on online businesses!
Question: What has been your biggest business challenge?
- 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.
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I checked this out of my local library today and its pretty interesting... didn't address what I wanted to know, which was how to actually design an online gaming system (indeed this doesn't cover online games at all), but for board games etc. it's pretty good.
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Trivial Pursuit
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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
This can cover machinery, sales invoices even sales orders. It can be a very flexible source of finance to the growing business
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.
Sale and leaseback of a property you own is another good source of funds.
Factoring
Factoring offers a sales ledger administration and debt collection service. Up to 95% of an approved sales invoice is paid within 48 hours, quicker if required. Credit protection is also available to protect against a bad debt. The Factor will own and place a first charge over the book debts and they might also take other charges, depending upon the strength of the financial information.
Invoice discounting
Invoice Discounting can be Confidential or Disclosed; it depends upon the strength of the financial information. The service is the same as Factoring, except that the sales ledger administration and the debt collection is the responsibility of the client and not the Factor. Pre payment of the approved sales invoice is still up to 95% and the factor will still have a first charge on the book debt and therefore own the debt. This service can also have credit protection cover. All sales invoices need to be for a business to business debt, and some proof of delivery is generally required.
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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