Exit Interviews: What Leaders Need to Know

Key Insights from iHire’s Data

As an HR leader, you’ve likely faced the all-too-common challenge of employee turnover. While some departures are unavoidable, many are preventable with the right tools. One such tool? The trusty exit interview. It’s like the company’s version of a heart-to-heart before the breakup—except you’re both hoping for constructive feedback, not a "you’re just not that into us" moment.

Recent data from iHire provides a glimpse into why employees leave, and it’s not always about paychecks. The top reasons employees exit are a toxic work environment (32.4%), poor leadership (30.3%), and unhappiness with their manager (27.7%). Interestingly, unsatisfactory pay ranks much lower at 20.5%. This data flips the script on the common assumption that salary is the main reason people quit, highlighting that a positive work environment and strong leadership matter much more than the size of the paycheck.

On the flip side, employers report personal reasons (51.4%) and career alignment (42.0%) as the top reasons employees leave. However, there’s a disconnect—while employees blame a toxic environment, only 15.3% of employers recognize this as the main factor. This is where your exit interviews come in—providing you with the honest feedback you might be missing.

Why Exit Interviews Matter

If you’re thinking exit interviews are just a checkbox on your HR to-do list, think again. When conducted correctly, these interviews are an invaluable tool for identifying patterns that can inform your retention strategies. They provide real-time, actionable insights that can help you identify areas of improvement—whether it’s a work culture that needs a makeover or a manager who could use some leadership training.

The numbers from iHire make it clear: employees value a positive work environment, good leadership, and healthy manager relationships more than pay. So, the next time someone exits, don’t just wish them luck—ask them why. It could save you a lot of headaches (and potentially a few more resignations).

Tips to Remember for Effective Exit Interviews

Now that we’ve convinced you of the power of exit interviews, let’s dive into how to make them work for you. Here are some tips to keep in mind that’ll ensure these conversations are productive—and not just awkward, one-sided exchanges.

In this video, Tony shares key tips for employers on conducting effective exit interviews to gain valuable

feedback and improve the workplace. WATCH IT NOW!

1. Who Should Conduct the Exit Interview?

2. When Should the Exit Interview Be Conducted?

3. Where Should the Exit Interview Take Place?

4. How to Approach the Exit Interview?

• Make it a safe, confidential space: The last thing you want is for the employee to hold back because they fear their feedback will harm their career. Assure them that the interview is confidential, and that their honesty won’t affect their future job prospects. A little reassurance goes a long way.

• Ask open-ended questions: Avoid yes/no questions that sound like a quiz—your goal is to understand the full picture. Instead of asking, “Did you leave because of your salary?” try, “What factors influenced your decision to leave?” This invites employees to share their experiences in more detail, giving you richer insights into why they’re leaving.

• Don’t be defensive: This is not the time to justify why your leadership team is “really great” or why your workplace culture is “fine.” If the employee shares negative feedback, resist the urge to argue. Instead, focus on listening. If you defend every complaint, you’ll miss the chance to learn from it—and nobody wants to be that HR person who always interrupts with, “But, what about…?”

• Follow up and act on the feedback: Don’t just collect feedback for the sake of it. If you notice patterns—say, employees frequently cite poor management—take action. Implement change where needed, whether it’s through leadership training or initiatives to improve team morale. And, be transparent about it. Let current employees know that their voices are heard, and that you’re working on improvements based on exit interviews. It’s like telling your remaining employees, “We’re listening to you, we promise!”

Top Exit Interview Questions to ask: Good vs. Bad

The questions you ask during the exit interview can make or break the conversation. Here’s a comparison of some bad vs. good questions, and why the good ones will get you the information you need (without sounding like a robot or a detective):

Bad Questions to Avoid:

1. "Did you leave because of your salary?" It assumes pay is the issue and doesn’t leave room for the employee to share their full experience. Plus, it might come off as too blunt or invasive.

2. "What could we have done to make you stay? It puts the pressure on the employee to come up with solutions and doesn’t allow them to give constructive feedback. You’re the one who should be identifying areas for improvement, not them!

3. "Were you unhappy with your job?" It’s vague and doesn’t get to the root cause. Employees might just nod and say "yes" without elaborating on why, and you’ll be left with nothing but frustration.

4. "Do you think your manager was a good leader?" This is a yes/no question that’s way too simple for something as complex as leadership. It won’t give you any real insights into the dynamics of the relationship.

Good Questions to Ask:

1. "Can you share the main reasons you decided to leave the company?" This allows the employee to explain their decision in their own words, giving you direct insight into what motivated them to leave.

2. "How would you describe the work environment here, and how did it impact your decision to leave?" It digs into the work culture, which is often a major driver behind an employee’s departure. It gives the employee a chance to share specifics about their experience.

3. "How did your relationship with your manager and team affect your experience here?" This question zeroes in on the manager-employee dynamic, which is often one of the top reasons people leave. It’s a chance for the employee to give you feedback that could be valuable for improving management practices.

4. "Were you satisfied with the professional development opportunities available to you?" Employees who feel stuck or stagnant may leave due to a lack of career growth. This question helps you understand if career development opportunities were sufficient.

5. "What could we have done differently to improve your experience at the company?" This opens the door for constructive criticism. It shows you’re willing to listen and make improvements—and it helps you pinpoint areas where your organization could do better.

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Conclusion

Exit interviews are more than just a formality—they’re a vital tool for HR leaders who want to gain insight into why employees leave and make meaningful changes to improve retention. By asking the right questions, fostering a safe and open environment, and acting on the feedback you receive, you can create a workplace that attracts and retains top talent.

And remember, exit interviews aren’t just about collecting data; they’re about showing your team that you care enough to listen and grow. So, don’t shy away from those tough conversations—embrace them, learn from them, and use them to build a better workplace.

At the end of the day, if you can prevent just one more resignation by listening and acting on feedback, then that exit interview was worth every minute.

At Timpl, your trusted workforce solutions partner, we help you turn feedback into actionable steps that strengthen your organization. Connect with Timpl today and let us help you create a thriving workplace.