EXIT INTERVIEW & ATTRITION

ANALYSIS
EXIT INTERVIEW
 An Opportunity To Explore Reasons As To Why Employees Leaving
The Organization.
WHAT IS EXIT INTERVIEW?
 An Exit Interview is a meeting between a departing employee and a
representative of the organization (either the functional head of the
employee, peer or someone from HR department).

 “ Exit Interviews” can also be termed as “Confessional Interviews”

or “Feedback Process”, as employees who are leaving the
organization voluntarily, prove to be sources of priceless
information.

 An organization can use the information gained from the Exit

Interview, to assess what should be :
I. Improved
II. Changed or
III. Remain intact.
 Analysis of results and related statistical reports created from Exit
Interviews provide opportunities for the organization to develop actions
that can encourage reduction in :
I. Turnover Rates
II. Improve Employee Morale
III. Encourage a possible future return.

 Exit Interview serves as an effective HR tool that can be used by

organizations to find out from an outgoing employee the reasons behind
his leaving the organization.

 Exit Interviews provide valuable insights to the employers to know how

to Retain their talented staff and Improve their work culture as well as the
Workplace environment.
 Exit Interview is a Structured, Purposeful and Open Discussion, for the
sole purpose of identifying factors, which are making employees leave.

 There are Different Type Of Exit Interview methods which can be used
depending upon the discretion of the top management and the HR
department of the organization.

 Some of the methods available for conducting these interviews are:

 In-person Exit Interviews
 Telephone Exit Interviews
 Paper and Pencil Exit Interviews
 Online Exit Interviews
IN-PERSON EXIT INTERVIEW
 With In-Person Exit Interviews an HR representative meets individually
with each employee leaving the company.
 Pros :
 It can provide information regarding benefits and retrieve company
property during the interview.
 Gives a personal touch to each employee.
 Can probe for more information on each question.

 Cons:
 Employees may be afraid to share sensitive or negative information
during an In-Person Interview.
 For larger companies, it may be too time consuming to Interview every
employee.
 It's difficult to track information received verbally during an Interview.
TELEPHONIC EXIT INTERVIEW
 Telephone Exit Interviews are conducted over the telephone by an HR
Representative or an outside third party consultant.
 Pros:
 It can probe for more information on each question.
 It can enter data into a tracking system while conducting the interview.
 Easier to schedule than In-Person Interviews.

 Cons:
 Time consuming if done In-house by an HR Representative.
 Expensive if done with an outside consultant.
 Employees often reluctant to verbally share sensitive or negative
information.
PAPER AND PENCIL EXIT
INTERVIEW
 Paper and Pencil Exit Interviews are usually conducted by a form that is
given to the employee on their last day or mailed to the employee's home.
 Pros:
 It takes less time to provide a form as compared with conducting an In
person or Phone interview.
 Employees can share information on paper that they may be reluctant to
say in person.

 Cons:
 Return rates for Exit Interview forms average just 30-35%.
 Difficult and time consuming to compile and track the data from paper
and pencil forms.
ONLINE EXIT INTERVIEW
 Online Exit Interview is conducted over the web.
 Pros:
 Employee self-service, it makes so easy for HR to administer.
 Employees comfortable sharing information by computer so more honest
responses.
 Information automatically compiles and tracked.
 Reports available at a click of a button.
 Participation rates (for Web Exit customers) double that for paper and
pencil exit interviews.
PURPOSE OF EXIT INTERVIEW
 Exit Interview helps discover the employees reason for leaving.

 Gather trustworthy data on problem areas, in order to help the

management take remedial actions.

 Allows departing employees to have a voice about their work experience

and negative attitude towards the organization.

 Exit Interviews collect valuable feedback from departing employees and

provide vital clues on various organizational aspects like working
conditions, interpersonal relations, pay packages, policies, etc.

 Retain a talented employee by finding the reasons for his

dissatisfaction and agreeing on feasible solutions.

 Encourage good relations with the departed employee.

WHO SHOULD CONDUCT EXIT
INTERVIEW?
 Exit Interviews are conducted by the employer or the management to
unearth the reasons for employee turnover.

 In case of In-Person Exit Interview the company's representative may be

either the functional head of the employee or someone from the HR
department and not the employees' direct supervisor.

 In order to reap the benefits of Exit Interviews, the organizations can hire
an experienced third party, a consultant or firm that specializes in
conducting these sensitive interviews because most of the outgoing
employees may not like to offend the management at the time of leaving
the organization.
PROCEDURE/ (HOW TO CONDUCT
AN EXIT INTERVIEW)
 HR receives notice of an employee resignation through the personnel ticket
system, submitted by the supervisor of every department.

 Supervisor should ask employee to choose a method in which they would like to
complete the Exit Interview.

 Within the first week of receiving this notice, and before the employee’s last day,
HR will contact the employee to arrange for the survey to be completed.

 Conducting exit interview is just like a food for thought, an effective exit
interview can be conducted by following some of the imp. Tips:
I. Choose interview format.
II. Decide what to ask.
III. Creating a comfortable environment.
IV. Distill employee anxiety.
WHEN AND WHERE TO CONDUCT AN
EXIT INTERVIEW ?
 WHEN?

 When the employee submits his resignation, and decides to leave the
organization, just before they leave employer makes sure exit
interview is available to every departing employee, but strictly on
voluntary basis.

 Confessionals interview/ exit interview are different, but it is always

advisable to conduct the exit interview as soon as the employee puts
in his paper, as the feeling of separation is still fresh in his mind, and
will be able to provide some unpolished feedback.
 WHERE?

 The next important question is where to conduct an exit interview, as

it one of the most sensitive area of feedback.

 Interview should be conducted face- to face, in private, positive and

professional environment.

 The physical ambiance should be given appropriate importance,

avoiding interviews in public places like coffee shops or canteens
where they may be over heard by supervisors or other employees.

 Always better to conduct exit interview in HR department’s private

office or the hired third party consultant’s office.
HOW TO USE THE DATA COLLECTED FROM
EXIT INTERVIEWS?

 Confidentiality:
 Maintaining the confidentiality of the collected data through Exit

Interview should be the primary purpose.

 Exit Interviews will be fruitful when it is aimed at encouraging the

retention of valued employees.

 Data collected from Exit Interview can be used to build the reputation of
the organization.

 The data collected can help avoid costly lawsuits down the line, caused
by discontented employees.
 Collected data can also help assess the key areas of the company like:
I. Pay packages
II. Training and development
III. Recruitment
IV. Infrastructure
V. Supervision
VI. HR policies, etc.

The company can start the process of retaining the talented employees
in the initial stage itself.

 Data helps the company to liberally choose from a range of strategies

available which they consider to be the best suited for their organization.

 It gives talented worker the freedom to choose their work schedule as

ideas can be generated at any time.
 Provide incentive packages to selected potential individual.

 Maintain a personal touch with the potential targets.

 Regular training sessions can be conducted help the employees achieve

goals on their personalized career graphs.

 Positive and constructive feedback on a regular basis.

 Retention of talented employees can be enhanced by improving the process

of socializing the new employee into the corporate culture.

 Fair treatment of all the employees so as to foster a positive work

environment etc.
ANALYZING CDIPL EXIT INTERVIEW FOR
THE YEAR (APRIL 2016- APRIL 2018)

 Exit interview is one of the effective way by which organization can retain
the best, by proper documentation of feedback obtained.

 Exit interview is an opportunity to shake hands and leave as friends and not
as enemies.

 ..\EXIT interview Questionnaire-CDIL (1).doc

 A&E 1.xlsx
CDIPL (2016- 2018) EMPLOYEE EXIT
INTERVIEW REPORT

 Summary of the main trends and finding through exit

interview.
 Factors that attracted
employees:
Convenient location 18%
Organization Culture 17%
Opportunities for training & 15%
advancement
Professional environment 12%
Factors employees enjoyed least:

Pay 25%
Career Growth 12%
Transparency 12%
Benefits 8%

Factors employees enjoyed most:

Work Environment 16%

Training/ Education opportunities 14%

Convenient location 13%

Meaningful work 12%

Primary reason for leaving:

Change in Career 28%

Family need/ Marriage 25%
Pay dissatisfaction 11%
Lack of transparency 6%
 Other reasons for employees leaving CDIPL are:
I. They have other work plans.
II. Employees feel that there is no regular performance feedback from the
superiors.
III. Delayed performance appraisal.
IV. Sufficient information was not provided to succeed in the job.
V. Job expectations were different from the job description.

 While analyzing the data, the reasons quoted by departing employees state
that:
I. There should be an increase in designation, responsibilities and salary.
II. Quick decision making should be there, (a sense of authority should be
granted).
III. Job responsibilities/ grade, compensation should be upgraded.
IV. Youth should be hired, to bring change even with higher pay scale.
V. More career growth opportunities should be provided.

VI. *A small minority of employees mentioned issues such as their relationship

with their superior.
 Over all the attitude of most of the people leaving the CDIPL remain
positive towards the organization.
 Organization’s culture
 Relationship with colleagues and managers
 Work/life balance
 Work culture
 Location
 Training and advancement opportunities
 Job security

 All these were rated high by the leavers.

SOME OF THE MAIN FACTORS TO LEAVE
CDIPL
 The pie charts represent the major factors for employees decision to
leave CDIL:
 Enhanced job opportunity
 Salary: (Most of the leavers mentioned salary as contributing factor
to their decision to leave.)
 Lack of transparency and quick decision making.

 All these factors/ feedback stated by the departing employee, act as

an opportunity to make the changes in a better way.
REMEDIAL AND PREVENTIVE ACTION
 Improve health and safety issues (as it is a manufacturing unit also).
 Improved induction
 Improved management or supervisory training.
 Empowering employees (with authority and decision making
power.)
 Employee engagement activities should be done.
 Team building initiatives.
 Better pay scale and other non-monetary benefits.
 Appreciation.
 Bi-directional feedback process etc.
 Exit Interview is a feedback process which is usually followed by Attrition Analysis.

 In order to understand Attrition Analysis ,one has to understand what is attrition.

 Attrition in simple terms is the number of people who quit the services of an organization
voluntarily.

 Attrition analysis, therefore, is a method of finding out reasons as to why employees quit,
what are the contributing factors to it, what could have been done by the organization to
retain them, what can be done to prevent future attrition for similar reasons, etc.

 To do attrition analysis, there has to be an Exit Interview or discussions (either formally

or informally).

 During Exit Interview/discussions, every employee who is quitting the organization is

asked about the reasons of his leaving, what did go well and what did not, what the
organization should have done to retain him/her.

 When we compile the data of every employee who quit the organization over a period of
time, we compile the reasons and see what are the major reasons.

 Based on the data collected, we can do analysis and can take corrective and preventive
actions.
 ATTRITION
 Attrition: "A reduction in the number of employees
through retirement, resignation or death"

 Attrition rate: “The rate of shrinkage in size or number”.

 Attrition Analysis: “Knowing reasons for leaving

organization and overcoming it”.
WHAT IS ATTRITION?
 A reduction in the number of employees through retirement,
voluntary/ Involuntary resignation or death is called “Attrition”.

 “Attrition” is also called total turnover or wastage rate.

 Turnover = (Number of staff leaving per year * 100 / Average

number of.)

 Employee attrition is a challenging issue in the business world. It

has a significant impact on the competitive strength of a company.
TYPES OF ATTRITION
 Good Attrition:
 LESS PRODUCTIVE EMPLOYEES LEAVE.

 Bad Attrition:
HIGH PERFORMERS LEAVE.

 Market Driven Attrition:

INFLUENCED BY MARKET CHANGES (BASED ON THE
DEMAND OF PARTICULAR SKILL).

 Workload/ Stress Driven:

LOW BAND-WIDTH OF EMPLOYEES (ACTUAL CAPACITY
TO PERFORMANCE WORK REQUIRED).

 Process Driven Attrition:

 ORGANIZATIONAL PROCESS (VARIABLE ASSOCIATED
WITH JOB DESCRIPTION/ OR THE VALUES FOLLOWED BY
ORGANIZATION).
FACTORS RESPONSIBLE FOR
ATTRITION
 Attrition occurs due to many factors:-
I. Dissatisfaction with the company.
II. Insufficient salary.
III. Poor working environment.
IV. Lack of motivation.
V. Poor relations with colleagues and boss.
VI. Unhappiness of employee and many other factors.
AVOIDABLE & UNAVOIDABLE
FACTORS
 Avoidable factors:
 There are many avoidable causes of employee attrition such as :
I. Lack of sufficient salary.
II. Poor relationship with fellow colleagues or boss.
III. Long working hours.
IV. Continuous night shifts.
V. Lack of job security.
VI. Poor working conditions etc.
 These causes can be controlled by the employer up to a certain
extent.
 Unavoidable Factors:
 The unavoidable causes are not due to the fault of the management
but are due to other factors which are not under the control of the
management such as :
 Marriage in case of young employees.
 Dislocation due to some family problems.
 Pregnancy.
 Continuous poor health .
 Disability due to accident.
 Mismatch with job.
 Career development .
 Starting own business.
 Housing or transport problem etc.
 All these lead to employee attrition.
COST ASSOCIATED WITH ATTRITION
 Human Resource is a very important and valuable asset of an
organization and the cost associated with attrition of each employee
is very high which includes:
I. The recruitment costs increases.
II. Training cost increases.
III. Loss of production in the interval.
IV. The pay of learner is in excess of his productivity.
V. High accident rate.
VI. High wastage and accident rate.
VII. Low employee morale, dissatisfaction and team spirit.
EFFECTS OF ATTRITION
 An organization has to bear the following losses due to high
employee attrition:-

I. Shortage of Talent: There is acute shortage of talent which

is one of the important reasons for attrition among
employees at the managerial level.

II. Low Morale and motivation: Moral is the total satisfaction

a person derives from his job.

a. High Morale: - Employees with high morale will like his

job and cooperate fully with the management to achieve the
organizational objectives.

b. Low Morale: - Low morale indicates the presence of

mental unrest.
III. Prestige of an organization: Employee attrition has an adverse
impact on the prestige of an organization in the human resource
market because excess turnover may create a bad image of the
organization and it may find difficulty in attracting candidates for
job.

IV. Poor output in terms of quality and quantity: High attrition

disturbs the production schedule, the quality and quantity of
output.

Poor work environment due to any cause leads to poor output in terms
of quality and quantity. There will be rise in leave, absenteeism, and
turnover of employees will be high.
ATTRITION RATE
 Attrition rate: “The rate of shrinkage in size or number”.

 It is a calculation of the number of individuals or items that vacate

or move out over a specified time frame.

 Attrition Rate is also commonly referred to as “Churn Rate”.

 It is used by Human Resource professionals to determine the

companies ability to retain the employees.
FORMULA TO CALCULATE
ATTRITION RATE
 The Attrition rate can be calculated typically on a monthly
or annual basis.

..\Attrition rate.xlsx
ANALYSIS OF ATTRITION RATE DURING
THE YEAR (APRIL 2016- APRIL 2018)
 Low staff turnover tends to be advantageous for any business, and high turnover
tends to be disadvantageous.

 But not in the case of workers who are leaving are the ones you don’t want to retain.

 The data collected during the year 2016- 2018 shows that the turnover rate has
decreased by 1%, though it’s a very minute difference still it can be seen that :

 The staff is being treated well.

 They are provided with all the benefits.

 Opportunities are offered for training and skill development.

 The working culture of the organization, holds back the people to stay because
money/ pay, is not only the single thing that strive people, there other factors too.

 Like, maternity leave, child care, bearable work pressure, working environment,
convenient location etc.
POSITIVE ATTRITION AND NEGATIVE
ATTRITION
 Companies expect to keep and lose workers regularly as a part of doing
business.
 Some employees leave through retirement or a new opportunity elsewhere.
 But the most important thing about attrition is, despite the cost associated
with replacing workers, not all attrition is bad for a company.
 Change is always necessary, to give way to the fresh workers be brought it.

 Positive attritions:
 Keeping the talent fresh.
 Clearing out dead wood.
 Negative attrition:
 Costs of attrition
 Losing Continuity
 Too much attrition
ATTRITION ANALYSIS
 Defining Attrition Analysis:- Knowing reasons for leaving organization and
overcoming it.

 Attrition analysis is a method of finding out reasons as to why employees

quit:

 What are the contributing factors to it.

 What could have been done to prevent future attrition for similar reasons.
 To do attrition analysis, there has to be exit interview.
 As during the exit interview, every employee who is quitting the
organization is asked about the reasons of his leaving.
 Based on those reasons you as an employer can analysis and recommend
corrective and preventive actions.

 Formula of calculating attrition rate:-((no of attrition x 100)/(Actual

employees + new joined))/100
 Knowing the reasons why employees quit, what are the contributing factors
to it, what could have been done by the organization to retain them, what
can be done to prevent future attrition for similar reasons, etc.
EMPLOYEES RETENTION STRATEGIES TO
REDUCE ATTRITION RATE
 One of the biggest concern employers globally facing today is how to retain
employees.

 If employees are taken good care of, the employees will also replicate this
feeling to make organization stand out in the crowd.

 The best way to reduce the attrition rate is to hire talent and keep them up.
I. Stress on hiring the right fit. (technically capable candidate, with the right
personality and right mental and social attitude to fit to organization culture.)
 Listen to the employees (take feedback.)
 Employee appreciation goes a long way.
 Have a growth plan employees.
 Update and change HR policies and practices time to time.
 Employee engagement activities like (Aam ki chutney competition etc.)
CONCLUSION
 Organization must plan for the future and should give close
attention to why attrition occurs, as people are the greatest asset of
any organization.
 Thus, organizations should create an environment that fosters
ample:
 Growth opportunities
 Appreciation for the work
 Maintain a friendly cooperative atmosphere

 All these measure are necessary to make an employee feel

connected in every respect to the organization.
 Good retention plans should be made to engage the employees
emotionally and mentally.
LEARNING FROM THIS INTERNSHIP
 Great Exposure, got live experience of working on a real project in office.
 Professional communications (One of the most valuable skills I’ve learned
here is the ability to speak with people in a professional setting. Discussions
with bosses or coworkers )
 Networking is really very important (try to get wider exposure, try to
communicate not just with employees of your department but with other
departments as well.)
 How to manage pressure and meet the headline.
 Take constructive criticism (feedback is the key to be success, try and get
the feedback of your mentor time to time, so they can guide you where you
go wrong.)
 Making connections with people, you may need their help at any point of
time, for trainings etc).
 Job posting, CV short listing, File management etc.
THANK YOU !!!!