Does the Result of Exit Interview Add Value to the Organisation Performance - Research Proposal Example

DOES THE RESULT OF EXIT INTERVIEW ADD VALUE TO THE ORGANIZATION PERFORMANCE A Research Proposal By Your name Presented to: Course/ Class: University: City and state: Due date: Table of Contents Chapter 1: Introduction 4 1.1 Research justification and purpose of study 5 1.2 Research aim and objectives 7 Research objectives 7 Research questions 8 CHAPTER 2: LITERATURE REVIEW 8 2.1 Exit interviews in perspective 9 2.1.1 Face-to-face 10 2.1.2 Survey 10 2.1.3 Combination 11 2.2 Benefits of exit interviews 11 2.3 Procedure of the employee exit process 12 2.4 Components of employee exits 13 2.4.1 Knowledge transfer questions 13 2.4.2 Operational responsibilities 14 2.4.3 Standardized exit surveys 14 2.4.4 Employee exit interview 15 2.5 Outsourcing: a new dimension in exit interviews 15 CHAPTER 3; METHODOLOGY 17 3.1 Research strategy 17 3.2 Research design 18 3.4 Sampling 18 3.5 Data collection methods 18 3.6 Data analysis 19 3.7 ETHICS 19 Conclusion 21 References 23 Chapter 1: Introduction Employees are an important pillar of any organisation. They are a resource, which an organisation cannot operate without and therefore requires utmost care. The ultimate goal of every organisation is to generate profits and they do so through ensuring that their employees are productive enough. Given the critical role that employees play, employers cannot afford but to provide maximum support to their employees. These employees are however not permanent and at any one time, may decide to leave an organisation for reasons best known to them. This particular time, when an employee is leaving an organization calls for management. In human resource terms, this time that an employee is leaving has come to be referred as the exit process. The exit process is conducted differently in most organizations but they all have an essential component referred to as exit interviews. Exit interviews are an essential component of human resource management. It is a concept developed to assess feedback from employees who are leaving employment with intent of improving on the performance of an organisation in the long run. These interviews are important because they are beneficial to employees as well as the organisation. This is because the organisation is able to retain some knowledge from the employee who is leaving while the employee gets to leave a positive impression. 1.1 Research justification and purpose of study The purpose of this study is to investigate whether exit interviews add any value to the performance of an organisation. The study will also attempt to establish interviews to be done and their specific contributions towards the overall performance of an organisation. The 21st century has witnessed a very high turnover of employees in various organisations. With the current economic crisis affecting companies and organisations across the globe, employee turnover has been high and this has led to expenses previously not budgeted for. Whitepaper (2003) reiterated that high turnover leads to organizational losses. According to a study conducted by the Beach, Brereton & Cliff (2003), the workforce turnover in seven FIFO mining operations sites in 2002 stood at 10 to 28 per cent while the average was 21 per cent. Other findings suggest that employees in lower cadres of employment such as contractors are much less stable than those who are on permanent service (MOSHAB, 2002). Employee turnover is therefore a serious issue that has caused concern to most organizations because of the huge range of losses occurred. Consequently, one way of trying to reduce this huge employee turnover has been through managing the exits and gaining knowledge from employees leaving an organisation. Ideally, the exit process is the time for an employee to state the weaknesses and areas that can be improved in an organisation. Once an employee leaves, the task is for the top managers to make suitable changes based on recommendations by these former employees. What is however unclear is whether the results from these exit interviews serve any benefit in terms of the performance of the organisation and thus the need for this research. Although employee attrition is natural for most organisations, replacing employees who leave is not easy. Employee turnover is expensive for organizations since employees are an asset to every organisation. The impact of employee turnover has therefore been a headache to many human resource professionals. This is especially so because a majority of employees who leave an organization are usually the ones who are most productive (Bernstein, 1998). Replacing these employees is an expensive venture that is very costly and it is more than the announcement of an existing vacancy. It includes other hidden costs such as the training costs of a new employee and the productivity lost as the position is not occupied. It is therefore imperative for a company to understand reasons why people are leaving as this will be productive in the long run. Owing to aforementioned reasons, organisations have attempted to minimize employee turnover. One of the ways has been through the introduction of exit interviews. These are usually conducted by human resource professionals in view of identifying the strengths of an organization and improving on the areas of weaknesses. 1.2 Research aim and objectives The aim of this study is to develop an understanding of the results of exit interviews in organisations. The study will seek to find out whether these exit interviews are of any value to an organization. Research objectives 1. To establish if there is any relationship between the performance of an organization and exit interviews. 2. To investigate how exit interviews are conducted in organizations. 3. To identify whether the performance of exit interviews in organizations has consequently led to a reduction in employee turnover. 4. To critically apply the theoretical perspectives in exit interviews and recommend better approaches of conducting the same. Research questions The following questions will form a basis for the research I. Does your organization conduct exit interviews? II. How has exit interviews contributed to the performance of your organization? III. Have you ever implemented any suggestions given by past employees? The research will commence with a review of pertinent literature as regards the field of exit interviews. It will focus mainly on studies that have tried to show a relationship between the performance of an organisation and the conduct of exit interviews. Three principle areas will be reviewed namely; the role of exit interviews in organizations, types of exit interviews and the connection between performance of an organization and their conduct of exit interviews. CHAPTER 2: LITERATURE REVIEW This section presents pertinent literature available as regards the field of study. It begins by giving an account of exit interviews, how it is conducted, and the benefits OF exit interviews to organisations. An attempt has been made to review some of the studies regarding exit interviews and subsequently place it in the context of the study. The concept of conducting exit interviews is based on the need and desire to improve organizational productivity. Exit interviews affect nearly all areas of an organisation because they reduce the employee turnover and enable the management to focus on increasing investments. This culminates to improved organizational performance (whitepaper, 2003/2004). 2.1 Exit interviews in perspective An exit interview acts as a survey and provides information on many areas ranging from reasons for employee exit to what they enjoyed most about the organisation. Houran (2011) affirmed the need for organization to conduct exit interviews when most of its employees are leaving the premise for another company. During these surveys, the employee mentions areas of excellence in the organisation and those that needs improvement. The task of the management will be to critically assess the areas identified and act accordingly. There are two reasons that can make an employee to leave an organization. These can be broadly classified into “push” and “pull” factors. In this case the push element is when an employee is dissatisfied with the present job while the “pull” factor is when an employee gets a more attractive opportunity elsewhere(Public Sector Commission, 2009) Several methods can be used when conducting exit interviews. The commonly used mode is the face-to-face approach although others such as internet, over the phone or on paper can be used. Each of the method mentioned has advantages as well as advantages. Most establishments however prefer to use face-to-face approach as it gives a personal touch to each employee hence more likely to elicit honest responses. The following are the various forms, which exit interviews may take: 2.1.1 Face-to-face This is qualitative in nature and is an invaluable tool to discover issues that may not be possible with other methods. One limitation with this method is that the employee may not reveal genuine reason for leaving an organization. Nonetheless, Public Sector Commission, (2009) clarified that employee should perceive the interview positively and that it was not intended for malicious purposes. 2.1.2 Survey A survey can also be used whereby a set of standard questions are set. The limitation of this method is that it limits the respondent and hence may not give other information that would otherwise have proven helpful for the organization. The two widely used forms of surveys are hardcopy and online surveys. Hardcopy surveys are developed and given to the leaving employees to fill. Online surveys on the other hand are done online. 2.1.3 Combination This involves the use of the two methods of exit survey and face-to-face interviews simultaneously. This is usually preferred for employees in senior cadres whose positions are not easy to fill. The combination approach is labour intensive and it takes a lot of time and effort to finalize. (Dobbs, 2001) Westcott (2006) concedes there is no single method that is perfect in conducting exit interviews. Each organization should determine the method that best suits its needs. This is because each method has its own advantages and disadvantages. Consequently, what may be suitable for a particular organization may not fit into the context of another. The use of many mediums may therefore be more meaningful to organizations. 2.2 Benefits of exit interviews Benefits from exit interviews can only be realized when information obtained is acted upon for the benefit of an organization. Without any action, exit interviews may remain to be a complaining session with little or no value. Information obtained can be used to reduce the rates of employee turnover. There are several short-term benefits, which collectively contribute to improved profits and returns to investors in the long run (McAfee, 2007) Exit interviews ensure maximum utilization of time in that the time would have been lost in recruiting and re-training new staff. Additionally, the interviews enable an organization to cut back on potential productivity losses. This is illustrated by an employee who leaves a company when in the middle of a profit making venture. This will lead to losses, as the organization has to take time before filling the position with someone else who may not be conversant with the deal (Bryant, 2006). It is also beneficial to conduct these exit interviews because it gives answers on the real reasons as to why people are leaving a particular organisation. In effect, it accords a chance to the management to try to reason with an employee to continue working for the organisation. Once the areas that cause an employee to want to leave are identified, an organization gets hints on the areas to make improvements (Dobbs, 2001). 2.3 Procedure of the employee exit process Some human resource practitioners recommend that exit interviews follow a four-stage process; i. Gaining knowledge: This is an essential stage for the employees where the departing employee provides knowledge, which may be necessary for the growth and development of the company. ii. Attending to basic housekeeping issues, Employees in this case attend to issues within their areas of work. This may include clearing up the office and ensuring a smooth changeover for the incoming employee. iii. Standardized exit survey; This is where the employer puts into record form for usage in future so that there can be improvement on the part of the organization. iv. Face-to-face exit interview; at this stage the employer and employee achieves a final closure through a face-to-face exit interview (Houran, 2011). 2.4 Components of employee exits The employee exit process takes place through a series of stages. 2.4.1 Knowledge transfer questions This knowledge management tool ensures that people who leave an organization leave behind important knowledge. It also lessens the duration for training and inducting new recruits. Most professionals recommend that organizations utilize the time before an employee leaves as an opportunity for knowledge transfer. Knowledge transfer questions also enable an organization to benefit in terms of the network of contacts and other possible sources of knowledge from the employee who is leaving. Knowledge transfer questions may include other essential information such as the introduction of a preferred successor, and the way forward on what can be done to pass on knowledge to the successor. These questions should be used soon and should not be left until the time for the exit interview (Houran, 2011). 2.4.2 Operational responsibilities Operational responsibilities entail the final details of the departure such as handing over of one’s office and vital documents and equipment related to the organisation. Most organizations have developed a standard checklist system for the different cadre of employees that is adhered to when they want to leave. This ensures the safety of the property that belongs to an organization. 2.4.3 Standardized exit surveys These surveys are administered to find out the circumstances under which employees leave an organisation. For reliable assessment of such information collected through surveys, there should be a standardized format of gathering. The data is then subjected to a statistical analysis to avoid bias. 2.4.4 Employee exit interview This is the final stage of the exit process. It is usually conducted face-to-face for better communication and understanding. These interviews are frequently conducted by professionals from the human resources department. (Houran, 2011) 2.5 Outsourcing: a new dimension in exit interviews Outsourcing is a new concept in exit interviews where a third party is contracted to interview employees who leave an organisation. This method is credited with having a greater objectivity as the employee is not likely to hide anything from a third party (Embretson, 1999). This also ensures that the integrity of information given is enhanced Departing employees do so for a variety of reasons ranging from lack of career progression in an organization to general boredom. During the exit interview with the human resource department, however, the employee may not reveal such issues due to the respect for the organisation. An outsourced firm is therefore best placed to handle such negative comments. A third party interviewer is preferred by a majority of people due to various reasons. Foremost of these reasons is the fear of retribution. Employees on the verge of leaving may fear to reveal some issues. This is an aspect of protecting colleagues from possible harassment. People also fear that the information they divulge may fall on the wrong hands and end up being used against them in future (Whitepaper, 2003). Employees leaving may have lost trust in the organization hence may not see any value in any information that they leave behind. Their conviction is that no action will be taken on the comments that they suggest. They will therefore hold back on anything that they see as a form of criticism on the existing employees. When this task is however given to a third party then the departing employee may decide to be open and honest. Another reason why outsourcing is slowly but surely gaining momentum is skills, methodologies and the time spent to collect data by an outsourced firm. They are professionals who can collect and analyze data objectively. The overall benefit of outsourcing is that it improves the quality and integrity of the information collected. It also saves time. Exit interviews are time consuming and they strain the existing human resource professionals since such a task usually falls on them. The time and even costs of administering, conducting the interviews, and then finally preparing the reports for action is enormous. When such a task is outsourced, the organization can sit back, study recommendations and decide whether to implement on them or not (Kusserow, 2006). The use of exit interviews by organizations as an analysis tool is beneficial to organisations. This is because the organization will be able to retain their employees hence improving on productivity. The use of exit interviews helps employers to keep in touch with current trends and developments. They are thus able to develop and adjust on their policies accordingly. CHAPTER 3; METHODOLOGY The aim of this chapter is to present the approach, which the research will take, and reasons why such an approach is suitable. In the sections that follow, the methods selected to obtain data have been identified and justified. The section also makes reference to the conceptual framework that has been adopted in the paper. 3.1 Research strategy Both qualitative and quantitative methods of data collection were chosen for the study. These two approaches were chosen to gain access to a wide collection of data. This will improve the validity and reliability of the research. 3.2 Research design The study entails an investigation into whether exit interviews have had an impact on the performance of organisations. Multiple methods of data collection will be used to create validity in the research. The research will obtain data from different cadres of employees in organisations. The primary methods will be through interviews and structured questionnaires. Face-to-face interviews will be conducted with the top management to find out whether they conduct exit interviews when employees leave. The research will go further and investigate whether the suggestions are implemented and whether this has had any impact at all on organizational performance. 3.4 Sampling Sampling is the process of selecting a number of individuals to serve as respondents for a study. Respondents for the study will be selected through random sampling. 3.5 Data collection methods Both quantitative and qualitative methods of data collection will be used. To obtain the data, interviews, structured questionnaires, and focused group discussions will be deployed. Another source of information will be through documentary analysis. Documentary analysis will involve an assessment of the financial aspects of sampled organizations. Information will also be obtained from other sources such as books, periodicals, and journals. 3.6 Data analysis The research findings will be presented in narrative description form. There will also be the use of tables, graphs, and pie charts. Various categories in the data will be created then their relationship established. 3.7 ETHICS This section addresses the ethical concerns that may arise in the course of study. According to Parrington, (2002), ethical concerns are an integral component of any research management activity. This study will involve a number of individuals who will serve as respondents. Some of these individuals will be from organizations and this will mean that some considerations as regards the practicality of the research will be taken into account. These issues are elaborated briefly. The key ethical concern will be on the confidentiality of the information obtained from the respondents. The respondents will be informed about the research aim and objectives. They will further be made aware that any information they provide will remain confidential and will not be revealed to a third party without due authorization. The research will involve a critical examination of the financial records of an organisation. This will be done to provide conclusive evidence as regards the performance as related to exit interviews. There will also be an analysis of human resource records to determine current and past rates of employee turnover. The records that will be accessed by the research are highly confidential and arrangements will be made to ensure that privacy is maintained. The safeguards for this confidentiality will involve informing the organization about the details of the research at any stage. The final copy of the project report will also be availed to the organizations upon request. The research will be done through mutual consent. Participation will be voluntary. The respondents will give their consent before answering the questionnaires or participating in the research. This is of paramount importance since not every respondent sampled will be willing to participate in the research. The research will involve visiting a number of organisations. Permission will thus be sought from the relevant administrative units before the process begins. The research will only be conducted in an organization once permission has been granted. This express authority by the organizations involved in the study will ensure that any unforeseen risks to the participants or the organizations are adequately catered for. The research will be of value to the organizations, as the findings will demonstrate whether it is prudent to carry out exit interviews. Another ethical concern is on the relationship between the researcher and the participants in the study. Some of the participants will be known personally to the researcher. This will be by virtue of associations formed in school and in places of work. The research will utilize this closeness, especially with top-level managers, to discover more about organizations and the place of exit interviews. The research will be conducted within acceptable legal frameworks to be consistent with the nation’s laws and the university’s code of regulations for conducting research. The researcher will seek an authorization letter to conduct research from the university. This will be presented at the local administrative government office for another letter giving authority to carry out the research in specified zones under their jurisdiction. Conclusion The paper proposed a research on exit interview with a view of understanding whether exit interviews add any value to the performance of an organisation. To understand exit interview and its role in organization, literature review was conducted. This was then followed by a proposed methodology of study. The last part is an outline of ethical issues that may arise from the research. References Beach, R. Brereton, D., & Cliff, D., 2003. Workforce Turnover in FIFO Mining Operations in Australia: An Exploratory Study. Brisbane: Centre for Social Responsibility in Mining. Bernstein, A.,1998. We want you to stay. Really. Business Week, 22, June. P. 67. Bryant, M., 2006. Talking about change: understanding employee responses through qualitative research. Management Decision, 44 (2), pp. 246-258. Dobbs, K., 2001. Knowing how to keep your best and brightest. Workforce, 80(4), pp. 57-60. Embretson, S.,& Hershberger, S., 1999. 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Inc Magazine, 28(4), pp.40-42. Whitepaper, D., 2003/2004. Exit Interviews: How Impartial Assessments can Improve Staff Retention. Canberra: Drake International. Read More