It’s never easy when a team member quits. But as a leader, the way you approach these challenging moments can directly impact future employee retention.
When someone leaves, it can be a huge burden to fill the talent gap and not let the shift derail your team. And the cost of turnover is significant – ranging from tens of thousands of dollars to as much as twice the employee’s annual salary, according to Gallup. On top of that, a poorly managed exit can also ignite a ripple effect, causing remaining team members to think twice about their own employment with your company. In fact, employees are 9.1% more likely to quit when one of their coworkers quits, according to a study by Visier.
Unfortunately, while reducing turnover is a priority for companies, not enough managers take meaningful steps to understand why a given employee left or what could have been done to retain them. Two-thirds of exit programs are just a formality with no real follow-through, per a study by Harvard Business Review. That’s why it’s so important to recognize the value of exit interviews and to understand that they’re only effective if their feedback improves the experience for current and future employees.
So, how can you transform an employee’s exit into an insightful opportunity that can benefit your team?
Start positive
Remember that people talk. Speaking in icy tones or having curt interactions can make your exiting employees feel negatively about your company or you as a manager – even if they didn’t feel that way already. As a result, they might relay their feelings to your remaining team members or even post bad reviews on employer review sites or social media. A gracefully handled exit, on the other hand, can ensure a lasting impression of respect and gratitude that can strengthen relationships and team sentiments.
So, when an employee hands in their resignation, do your best to respond with appreciation for their efforts and excitement for their next chapter. This approach makes the employee feel valued and reinforces your company’s commitment to maintaining strong relationships, even beyond their tenure.
Encourage honest feedback
One of your biggest goals with exit interviews should be to capture genuine feedback that can be used to improve – and this can only happen when you create an environment where the employee feels safe to share openly. Try to avoid asking yes or no questions, and instead, ask open-ended ones like “What drew you to work here in the first place, and how did the role match your expectations? ” or “How could we have better supported you during your time here?” and even, “What excites you about your new role that was missing in your current position?” It’s also critical to ask follow-up questions that dig deeper into their reasoning. By doing so, you’re showing a true interest in their perspective, and they’ll be more likely to suggest solutions that can help your team in the future.
Focus on learning, not blame
Even if your team members appreciated you as a leader, some comments about your management style may still come up during an exit interview. So do your best not to get defensive and instead respond with curiosity. If your employee happens to comment on a time when you disappointed them, dig deeper to understand why they felt that way. This doesn’t mean you have to agree with their assessment or apologize, although in some cases that might be appropriate. The point is to understand how your actions may have been perceived. And from there, you can either work on improving in that area or adjust your approach for a better outcome with your remaining team members going forward.
Inquire about team dynamics
Your employees may have even more insights into team dynamics than you. So when a team member leaves your company, gaining their feedback on group sentiment and tensions can be really helpful in strengthening your team. Consider asking them if they see any opportunities to improve collaboration or are aware of any team members who might require some additional attention and support. Keeping these questions open-ended invites them to expound, giving you the chance to gain some valuable takeaways about the inner workings of your team and identify improvement opportunities.
Leave the door open
The exit interview shouldn’t be the last interaction you have with the employee because it can potentially end things on a less personal note. On their last day, consider calling them or popping by their workspace to express your appreciation, encourage them to keep in touch, and tell them you hope your paths cross again. This sends a message to the exiting employee and your current team members that your support is genuine. Plus, doing so could lead to more opportunities down the road – whether it’s rehiring them or working together in another capacity. You never know where, how, or when these same people will re-emerge in your life and career.
