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Curbing Turnover through Employee Exit Interviews
Challenge
At one of the premiere US-based credit companies, executives found themselves faced with a problem common to many organizations: high employee turnover. With nearly 4500 employees leaving the organization each year, the turnover rate rang in at approximately 30 percent, more than twice the industry average. The financial implications were staggering: the company shelled out over $54,000 per employee per year for replacement costs.
Solution
Though the organization couldn’t pinpoint the cause of turnover, executives knew that addressing the problem was essential to long-term success. They turned to The TRACOM Group to uncover the sources of employee dissatisfaction. TRACOM’s custom online exit interview process is comprehensive, simple to use and, unlike traditional exit interviews, is easy to implement consistently for a company with multiple locations.
TRACOM developers worked with the organization to create survey tools with a structure that best suited their needs. Within five working days, the system was online and ready for testing and training. The custom-developed solution gathered data and created reports in real-time and allowing the company to segment the data according to specific needs. This ability to slice and dice the data easily helped the company uncover nuances in the survey, revealing the real issues behind high turnover. The survey would also allow the company to compare quarterly and yearly trends in the future.
TRACOM conducted three two-day training sessions for Human Resource managers and specialists from different locations across the U.S. Participants learned how to use the system and how to frame the process to gather candid responses from exiting employees.
Results
After just three short months, some trends emerged in the data. Many of the issues had apparently originated at the local level, suggesting that line managers needed to play a larger role in reducing turnover.
Nine months into the project, strategic actions at the local level were beginning to hedge the turnover rate. A focused companywide retention program was taking shape and being deployed with detailed turnover metrics. In this short amount of time, the organization saw a 0.5 percent reduction in turnover resulting in nearly $1 million cost-savings.
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