James Nicholson, managing director of Robert Walters in Australia and New Zealand, says the ability to retain top talent is vital to any employer's success, and believes many tend to ignore the opportunity exit interviews can present.
The report finds most professionals give honest and constructive feedback in their exit interview, but a quarter of employers file this away without acting on it. Nicholson says collecting feedback is a good way to gain insights into an organisation and if used wisely, provides an opportunity to build a better workplace through making changes that could improve the employer brand, attraction strategies or staff retention.
"The insights gleaned from former staff can shed light on all aspects of the working environment, from the culture, systems and day-to-day processes, to problems with the company's management style and underlying factors contributing to low retention rates," Nicholson says. If managed carefully, the exit interview can also be a way for staff to leave on a positive note or give bosses the chance to make a counter-offer.
As half of employees who are unhappy in their role say they would talk to their manager first before "jumping ship", employers often have the opportunity to take steps to ensure staff remain engaged and motivated, says Sean Brunner, director of Robert Walters in Wellington.
"These include setting KPIs [key performance indicators] and achievable targets, discussing opportunities for career progression in the company, and providing ways for staff to upskill by funding short courses.
"It's important to promote open communication in order to monitor staff satisfaction and tackle such issues before employees start their search elsewhere," he says.
Over a quarter of employees leave because of problems with colleagues or the company culture, and the survey found most bosses can tell when someone is unhappy through signs such as lateness, more sick days and negativity over work or colleagues.
Nicholson believes it is important to address any unhappiness as quickly as possible, not just for the worker concerned, but also to avoid decreased productivity and negativity from affecting other employees.
He says it's advisable for managers to get help from the HR department to set up a meeting and find out the root cause of a worker's unhappiness.
"Taking this initiative may change an employee's mind about leaving and therefore save the costs of staff turnover, or give you more time to consider the current market and your recruitment strategy before the formal resignation."
Nicholson advises that to improve staff retention rates and hold on to star employees, hiring managers should present their employees with both challenging work and a very clear path to progression.
"Attention should be paid to acknowledging employees for the hard work they do and rewarding them with non-monetary benefits such as regular feedback and recognition."
Past research from Robert Walters has found that education and training are highly prized career progression initiatives, and benefit both the individual and the company when a course is selected that offers something new and is relevant to the employee's role.
Robert Walters also suggests that for staff who have performed well but are already at the top of their particular division's ladder, employers should consider moving them to an international office or seconding them to another part of the business.
