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FINAL YEAR PROJECT

EXIT INTERVIEW IN ORGANIZATIONS

NAME: SAIRA NAVEED BBA ID: BBA-01-08-4089

IN

PARTIAL

FUILFILMENT

OF

BBA

DEGREE

SUBMITTED

TO

DEPARTMENT FACULTY OF MANAGEMENT SCIENCES

SUPERVISED BY: MR. M. USMAN ALEEM REPORT SUBMITTED TO:

PAF (Karachi Institute of Economics and Technology)

The partial fulfillment of the requirements for degree of Bachelors in Business Administration

LETTER OF APPROVAL

Project Title: By: Project Supervisor: Academic year:

Exit Interview in Organizations

Saira Naveed

Mr. Muhammad Usman Aleem

2011

The board of advanced studies of PAF-KIET has approved this project, submitted in partial fulfillment of the requirement for the degree of Bachelor of Business Administration.

Approval committee:

__________________________

__________________________

Mr. Muhammad Usman Aleem (Supervisor)

Mr. Muneeb Kidwai (Director Academics)

Letter of Transmittal

This report is generated as final year mandatory, individual research project on the subject Exit Interview in Organizations. I have tried to cover the topic as stated and make this report useful material for the concerned people.

The report includes Problem Statement, the brief literature survey and development of hypothesis testing.

Hope this report is acceptable to the supervisor Mr. M.Usman Aleem. As an individual I found the project interesting, challenging and will serve as a milestone in such future endeavors.

Cordially, Saira Naveed (BBA-01-08-4089)

Certificate

I am pleased to certify that Ms. Saira Naveed D/O Naveed Ahmed Khan has satisfactory carried out research work, under my supervision on the topic of Exit Interview in Organizations.

I further certify that distinctive original research and thesis is worth for presentation to the Department of Human Resources, Faculty of Management Science of PAF KIET for the degree of Bachelors of Business Administration (BBA).

Muhammad Usman Aleem


Supervisor

ACKNOWLEDGMENT

Gratitude is the hardest of emotion to express and often does not find adequate ways to convey the entire one feels. Final Year Project is the one of the important part of BBA course, which has helped me to learn a lot of experiences which will be beneficial in my succeeding career. Im thankful to my Project supervisor Mr. M. Usman Aleem, whose valuable guidance, suggestions, support, outstanding mentorship and experience benefit me in the successful completion of this report. He gave to me in the friendliest manner throughout this report. I tried out my best to collect appropriate information for the completion of this report. I am grateful to my supervisor for providing me such a practical oriented chance understands the effect of training and development on ceramic industry of Karachi. He provided me every support, information and contacts that Im able to come up with this report.

Table of Contents
LETTER OF APPROVAL .............................................................................................................. 1 Letter of Transmittal ........................................................................................................................ 2 Certificate ........................................................................................................................................ 3 ACKNOWLEDGMENT ................................................................................................................. 4 ABSTRACT .................................................................................................................................... 7 1.0. 1.1. 1.2. 1.3. 1.4. 1.5. INTRODUCTION ............................................................................................................... 8 PROBLEM DISCUSSION .............................................................................................. 9 PROBLEM STATEMENT ........................................................................................... 10 IMPORTANCE OF PROBLEM AREA ....................................................................... 10 RESEARCH QUESTIONS ........................................................................................... 10 PURPOSE OF THIS RESEARCH ................................................................................ 11

LIMITATION OF RESEARCH............................................................................................ 11 1.6. 1.7. SIGNIFICANCE OF THE STUDY .............................................................................. 11 SCOPE OF THE STUDY ............................................................................................. 12

HYPOTHESIS ....................................................................................................................... 12 2.0. 2.1. THEORITICAL BACKGROUND ................................................................................... 12 DEFINITIONS .............................................................................................................. 12

2.1.1 Exit interview ............................................................................................................... 12 2.1.2 Employee retention....................................................................................................... 12 2.1.3 Job satisfaction ............................................................................................................. 12 2.1.4 Organizational commitment ......................................................................................... 13 2.1.5 Motivation .................................................................................................................... 13 2.1.6 Quit ............................................................................................................................... 13 2.1.7 Turnover ....................................................................................................................... 13 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. PROBLEM AREA ........................................................................................................ 13 IMPORTANCE OF EMPLOYEE SATISFACTION ................................................... 13 THE MAIN REASONS FOR LEAVING ..................................................................... 15 THE VALUE OF EXIT SURVEYS ............................................................................. 17 MAKING EXIT INTERVIEWS MORE VALUABLE ................................................ 17 STRESS FREE EXIT INTERVIEWS ........................................................................... 20

2.8. THE FORMATION OF AN EFFECTIVE RETENTION MANAGEMENT PROGRAM ............................................................................................................................... 20

2.9. 2.10. 2.11. 2.12.

TYPES OF EXIT INTERVIEWS ................................................................................. 21 EXIT INTERVIEWS VERSUS EMPLOYEE SATISFACTION SURVEYS.......... 24 POST EMPLOYMENT EXIT INTERVIEWS ......................................................... 25 HOW TO IMPROVE EXIT INTERVIEW PARTICIPATION RATES .................. 25

2.12.1 Measuring your Participation ..................................................................................... 26 2.12.2 Analyzing Your Process ............................................................................................. 26 2.12.3 Employees Not Completing Their Exit Interview ...................................................... 26 2.12.4 Exit Interview Feedback Ignored ............................................................................... 28 2.12.5 Repercussions From Honest Feedback ....................................................................... 28 2.12.6 Angry Employee Feedback ........................................................................................ 28 2.13. IDENTIFYING LOGISTICAL PROBLEMS IN THE EXIT INTERVIEW PROCESS .................................................................................................................................. 28 2.14. 2.15. 2.16. 3.0. 4.0. 4.1. 4.2. 4.3. EXIT INTERVIEWS AND KNOWLEDGE TRANSFER ....................................... 30 EXIT INTERVIEWS AIMS AND OUTCOMES ..................................................... 31 EXIT INTERVIEWS RESPONSIBILITIES, PROCESS AND OUTCOMES ...... 34

METHODOLOGY ............................................................................................................ 36 THE DESIGN METHODS AND PROCEDURES ........................................................ 37 RESEARCH PLAN AND DESIGN ............................................................................. 37 DATA, POPULATION TARGETED AND SAMPLE SIZE ....................................... 37 THE INSTRUMENT AND TOOL OF MANAGEMENT ........................................... 38

Validation Standardization Questionnaire ............................................................................. 38 5.0. 6.0. 6.1. 6.2. 7.0. ANALYSIS ....................................................................................................................... 39 CONCLUSION AND RECOMMENDATIONS .............................................................. 42 CONCLUSION ............................................................................................................. 42 RECOMMENDATIONS .............................................................................................. 43 BIBLIOGRAPHY ............................................................................................................. 44

APPENDIX ................................................................................................................................... 47 RELIABILITY TEST................................................................................................................ 47 Survey Questionnaire ................................................................................................................ 47

ABSTRACT
Industries contributing to be an essential part of Pakistans economy and serving to play their part are service, pharmaceutical, healthcare, media and FMCG industries. These industries have an extremely high employee turnover rate and therefore are exposed to more market pressures which affect their growth. These rates have been increasing in the past few years and to negate the effect, Human Resource Managers have been using exit interviews as their tool to try to gather data which will help them understand the factors behind employee turnover. This research fuels the purpose to understand how exit interviews act as a source of data to determine the reasons behind employee turnover in the named industries above. The aim as mentioned earlier, is to analyze the data gathered from exit interviews to identify similar causes, patterns or significant factors leading to such high rate of employee turnover, in Karachi, Pakistan as the research was conducted here. Human resource managers participated in this qualitative research where their opinions were gathered through a survey questionnaire. Empirical data was collected from sources such as interviews with participants while the supporting data was collected from online media such as conference papers, academic articles and different websites. Though the study concludes that the exit interviews are indeed a good source of indentifying some very obvious factors of employee turnover, however, given the time and money that is invested to formulate, conduct and analyze them, they give very little to improving the organizations process as a whole. There are several factors which might affect the effectiveness of exit interviews and these factors vary from organization to organization. Such issues can be unequal power level of interview and interviewee, culture and linguistic barriers, and conceived notions of loyalty to the work place. There is also a gap between what awaits as a result through exit interviews and despite of it being in front, what the management does about it. The study reveals this gap more openly. It is found that even when exit interviews do serve for identifying the most obvious cause and will lead to improvement of the organization, the management does nothing about it. The research concludes that although benefit exists and exit interviews are
accurate in terms of capturing a true picture of employee feedback, but it is not sufficient to most of the organizations what analysis exit interview provides and so other methods of getting employee feedback such as engagement surveys may prove to be a help also.

Keywords: Exit Interview, Process, Employee retention, Employee feedback, Employee turnover.

1.0. INTRODUCTION
We have through studies explored every section of the human resource process and based importance on each of it for the organization to prosper. What most of us forget in Pakistans organizations today is that exit interviews are as important as the selection process. The emphasis is laid less in Pakistan today though in countries abroad, though this is an important part of the human resource department. One might ask the question why? It has been seen that often when an employee leaves, the organization does not try to discover in depth the reason why, and in Pakistan mostly they assume it to be a higher salary and a package, which might be true in a lot of cases but not in all. The reasons if studied in depth lead to a wider understanding of what the company are lacking or how might it improve its position in the market in order to retain its key employees. In todays global scenario, it is vital to build a competitive workforce, once trained, retain them for they operate the core business and generate value for the organization. They, if leave, is a loss on investment and loss on ROI and by investment I hereby mean training cost. Reduction in turnover hence, helps to stabilize the internal culture of the organization and also its competence in the global market. Exit interviews therefore play a very important role in identifying the factors of employee turnover; why are they leaving, what are the several factors apart from salary and benefits, is there a problem between the supervisorsubordinate relationships or is it something else that the organization is lacking in general? The issue of employee turnover has been a great one as highlighted above for both human resource professionals and business researchers. If we study closely, over the years a large number of data has been published in shape of case studies and literature on the very issue and concern arises day by day. Employee turnover negatively impacts the performance factors in organizations. While it may have a positive side such as a new mixture of people and ideas but the cost that accompanies the turnover is a big worry for

the organization. The study aims to understand the potency and weakness of the exit interview approach that organizations take. The literature survey also highlights some aspects of improving the exit interview process design and its execution. (Cheng and Brown, 1998) Answer to such questions as to why employee hands in voluntary resignations is researched in depth with the available time and resources. The study was conducted on the notion that exit interview is one of the methods through which the reasons for these voluntary resignations can be uncovered which will ultimately lead to increased performance within the organization. (Brotherton, 1996; Giacalone and Knouse, 1989; Grensing-Pophal, 1993; Johns and Johnson, 2005; Zima 1983)

1.1.

PROBLEM DISCUSSION

Employee satisfaction leads to the foundation of constructing loyalty with an organization and there is more than enough academic and business literature that said as much. Employee satisfaction, as can be guessed, leads directly to reduction in employee turnover. An employee is satisfied with the organization and his work; he becomes loyal to the place and does not leave. Here, under this research study, turnover has been defined as an employees voluntary decision to leave and therefore demonstrating an action of choice and voluntary decision making process on the employees part. There are three key reasons highlighted below which tell us why we should concern ourselves with a wider business implication of employee retention rather than it just being a charge of Human Resource exclusively; 1. Turnover costs huge, its tangible and intangible costs making up a total of 50200% of the annual salary of an employee. 2. 3. Where turnover is high, the organization is perceived to lack quality service. Turnover causes more skilled or trained employees to leave which in the case of a team/ unit affects their overall performance and coordination leading to extra work loads and collaboration efforts causing stress in the middle of it all as a result of which the motivation level decreases within the organization and frustration increases.

Therefore, as mentioned above, employee turnover is a great cause of concern for the organization from all points of view especially performance. Reducing turnover and building satisfied employee base is important and so identifying the sources of reduction should remain a key priority of the industry facing such a problem. One of the ways to identify these sources of reducing employee turnover is exit interviews. Conducting such a process will also help to show how much the organization cares about its employees leaving and their worth to the organizations well being. It points out that their existence matters.

1.2.

PROBLEM STATEMENT

The purpose of this study is to identify what information is gathered from exit interviews and how that information can help improve organizations performance and retain employees, i.e.; reduce employee turnover.

1.3.

IMPORTANCE OF PROBLEM AREA

Researchers will determine why organizations are lacking in designing a proper process for conducting exit interviews and how are they to be conducted effectively in order to gather information that will help identify the factors behind employee turnover which can range from employee dissatisfaction with the job or other employees to other external benefits being offered. Also the study will highlight the importance of exit interviews as a vital part of Human Resource process which can lead to employee retention and also identify the correct way of extracting information from employees when leaving.

1.4.
1. 2. 3. 4. 5.

RESEARCH QUESTIONS

What information is gathered by exit interviews? What is the correct and most effective method of exit interview? Why exit interviews are not conducted in all organizations? What are the causes of turnover? How can employee be retained in an organization?

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1.5.
1. 2. 3. 4.

PURPOSE OF THIS RESEARCH

Identify what sort of information is gathered through exit interviews. Identify what is the correct way of conducting exit interviews. Identify why the process is not implemented in most organizations. Identify negative influencers of turnover including job factors, company practices, programs, policies, and relationships.

5. 6.
7.

Pinpoint specific issues or events contributing to turnover/ retention. Identify drivers of employee retention. Identify areas for improvement of retention.

LIMITATION OF RESEARCH

The time constraint allotted for the study was limited; hence, certain areas of the topic could not be researched upon during the course of the study. The sample size 20 is too small to reflect the opinion of the whole Industry. (5 different sectors were taken and divide as 20 x 5 = 100).

The answers given by the respondents have to be believed and have to be taken for granted as truly reflecting their perception. The study presented is done on a minute scale and seeks to provide a birds eye view of the ground realities. The findings are a result of the research conducted in a precise area and group of people and so the findings may not be applicable directly to other major areas and segments.

As requested by the respective organizations that their names will not be published and few documents and interview sharing were done on the basis that it will not be used for the research, but may add to research in some other form.

1.6.

SIGNIFICANCE OF THE STUDY

The issue of employee turnover has a wider business implication and so this study will help the management realize the importance of exit interview and its effects on present

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employees and increased productivity in organizations. This will make them realize the power of retained and motivated employees.

1.7.

SCOPE OF THE STUDY

The research provides me with an opportunity to explore the functionality and importance of Human Resources. The research is beneficial and will provide constructive result as it will help us in obtaining a wider view of employees different job status and long term effects on their job performance. A different perspective will emerge from this research and new ideas will be put forward as to how organization decrease its turnover and increase its productivity of employees which is one of the goals of the Human Resource Department.
HYPOTHESIS

HO1: Exit interviews are not accurate, in terms of capturing a true picture of employee feedback. HA: Exit interviews are accurate, in terms of capturing a true picture of employee feedback.

2.0. THEORITICAL BACKGROUND


2.1. DEFINITIONS

2.1.1 Exit interview is a discussion between a representative of an organization and an

employee who is leaving the organization--either voluntarily or involuntarily--or an employee who expresses a desire to leave (Zima, 1983; Goodale, 1982).
2.1.2 Employee retention Employee retention is a business activity designed to keep

performing employees from leaving the company (Girard, 2011).


2.1.3 Job satisfaction positive or negative attitudes held by individuals toward their

jobs (Greenberg & Baron, 2008).

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2.1.4 Organizational commitment the degree to which an employee identifies with a

particular organization and its goals, and wishes to maintain to maintain membership in the organization (Robbins, 1993).
2.1.5 Motivation the processes that account for an individuals intensity, direction, and

persistence of effort toward attaining a goal (Robbins, 1993).


2.1.6 Quit a separation of an employee from an establishment that is initiated by the

employee; a voluntary separation; a resignation from a job or position (Bureau of Labor Statistics, 2010)
2.1.7 Turnover separation of an employee from an establishment (voluntary,

involuntary, or other) (Bureau of Labor Statistics, 2010).

2.2.

PROBLEM AREA

Knowing why an employee leaves is as crucial to understand as in understanding why they stay. Even this may be more important to understand as this helps to make them stay better. The reasons of their leaving can be disclosed in an exit interview and this makes these interviews a helpful tool in determining their conscious choice reasoning and process. Exit interview takes place when an employee is leaving the organization. Questions pertaining to his departure are asked and his feedback for the service term he has covered in the organization is taken. This interview generally reveals the reason for their departure, how they liked working at the organization, what sort of experience they have had and where the company does need to improve. The effectiveness of the interviews show when the data is analyzed and kept track of over a longer period of time.
(Moorhead and Griffin, 2004) (Brotherton, 1996; Johns and Johnson, 2005)

2.3.

IMPORTANCE OF EMPLOYEE SATISFACTION

Importance of employee satisfaction can be judged from the findings that employee once satisfied is retains his post and does not leave the organization. Moreover he tends to become loyal to his place of work contributing to build business value for the organization. Employee satisfaction, as can be guessed, leads directly to reduction in

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employee turnover. Here, under this research study, turnover has been defined as an employees voluntary decision to leave and therefore demonstrating an action of choice and voluntary decision making process on the employees part. (Bonn & Forbringer, 1992)
(Greenberg & Baron, 2008).

There are three key reasons highlighted below which tell us why we should concern ourselves with a wider business implication of employee retention rather than it just being a charge of Human Resource exclusively; 4. Turnover costs huge, its tangible and intangible costs making up a total of 50200% of the annual salary of an employee. 5. 6. Where turnover is high, the organization is perceived to lack quality service. Turnover causes more skilled or trained employees to leave which in the case of a team/ unit affects their overall performance and coordination leading to extra work loads and collaboration efforts causing stress in the middle of it all as a result of which the motivation level decreases within the organization and frustration increases. When calculating how expensive the employee turnover is for an organization, the calculation involves both direct and indirect cost. The direct costs include the separation and replacement costs. (Hogan, 1992) Separation costs are costs that entertain costs such as severance, unemployment insurance premiums and outplacement fees. Replacement costs include advertising, training, interview time, pre employee assessments and relocation costs. These are borne when hiring a new employee in place of the one who leaves. Indirect costs are much harder to trace and determine. It is harder because they often involve the cost of those variables whose value is difficult to measure such as what skills and knowledge is lost with the leaving employee, how much productivity has declined and to what extent the negative impact has come over organizational commitment. These as explained, value more and can have a greater impact in monetary terms in the long run than we imagine at first.

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2.4.

THE MAIN REASONS FOR LEAVING

Often when asked face-to-face, interviews reveal that a higher salary or a better job position awaits the leaving employee being the principle cause of his resignation. However, the information obtained here can be misleading as the leaving employee might not be all honest and deem this interview to be of no consequence hence placing less value on his answers and hiding the actual reason omitting detail as well. They tend to always give the more generally accepted answer. But this does not also suggest that a higher salary might not be the actual case. It most certainly can and in areas like Pakistan, it is one of the top most celebrated reasons for switching jobs. If accurate and detailed information is to be collected, the departing employees need to be provided a comfort zone by the management where they can open up easily and talk about their departure and its reason without fear or hesitation, where they will be able to openly criticize or give comments and feedback over the existing work environment and where they are able to describe their job aspects as well. Providing such a relaxed and broader exit survey system will help uncover a wider range of factors which affect the employees decision to leave. The attitudes and opinions of employees are a valuable area to be studied for the purpose as conscious choices deal with a range of psychological factors of humans. When such reasons are uncovered, they lead to a better understanding of the lack in the working system and can be then worked upon towards retention strategies and executions. When an elaborate survey is done, a range of organization and job types considered and their processes analyzed, the main reasons for leaving can be summarized into different categories such as; 1. Career chances which will lead to advancement in a field and existence of a clear development plan. 2. Work/ life balance where there is opportunity for having fun at the job, liking what you do when skills are utilized or there is a perfect person-job fit.

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3.

A better corporate leadership where the mission and vision is clearly defined, respect and support offered is commendable, management style is as suited to needs and the overall perception of leadership is inspiring.

4. Training opportunity is available where new skills can be learned, talent is promoted and the organization is in sync with the latest technology. Also the organization places emphasis on learning and keeps committed to training and development. 5. A wider range of compensation or rewards are being offered such as higher pay, better benefits, recognition and appraisal.

Figure 1 Employers impact over decision to stay/ go

The reasons summarized in the above categories lead to turnover and in many places, we are sure to identify that there is, though a very minute one, a part of the organizations own working environment or setup which influences the employees decision to resign. In fact, all the reasons being analyzed point out that out of the total control of an employee over his decision to leave or stay, more than 50% reasons are in control of both the employer and the employee. These reasons by side of the organization can also include longer term effects of the problems within which lead to a slow decline in

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satisfaction and also the more shorter term effects of problems that can cause the already employed to reconsider their positions and leave their jobs. From the analysis of all these reasons it is clear that the organization should take the most responsibility and consideration on their part and devise strategies for retention. Since the turnover rate cannot be eliminated altogether, interventions should be planned as such that they minimize the rate. (Brotherton, 1996; Giacalone and Knouse, 1989; GrensingPophal, 1993; Johns and Johnson, 2005; Zima 1983)

2.5.

THE VALUE OF EXIT SURVEYS

Exit survey systems can form an important part of the employee satisfaction and work environment research. When planning an exit survey, we should keep in mind that the exit survey should first of all be for everyone because interviewing all of them gives a more accurate understanding of the cause of turnover. The survey should be valid and reliable for a standard set of questions that are followed each time across the organization. It should be comprehensive in terms of incorporating all types of questions to cover the widest possible range of factors including feedback on the working condition and procedures and also recommendations on improving such. The survey should be open and sincere, comfortable and independent so that the employee is at ease when revealing his true reasons for leaving and the findings of the survey should be accessible centrally so that anyone who wishes to understand and take action can do so. In the last, the survey system should be evaluated and monitored on a regular basis and made to set targets of retention so that they can be achieved. (Hanisch and Hulin, 1990)

2.6.

MAKING EXIT INTERVIEWS MORE VALUABLE

Exit interviews when carried out well, reveal a lot about what the employee thinks about the organization and perceives the underlying issues at the workplace are. In West Asia, a top company was losing employees at an increasing rate. At first the manager thought that it was because there was a competitive hiring firm which was bent on recruiting its key employees but it was not so as after conducting the exit interviews with external agencys help, the data revealed. The HR managers discovered that the

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turnover rate was because they could not help but leave the workplace because they could not work with a certain supervisor in the firm. (Mobley, 1977) Once the reason truly was indentified, the company improvised and instilled feedback systems to get more opinions of employees and initiated training programmes for supervisors who lacked managerial skills and attitude. To identify the actual causes of leaving through exit interviews they need to be effective. They can be made so more when they are carried out by an external third party and when they are excellently timed. External third party: if someone from outside comes to conduct the interview, employees do not fear imbalance of power or biasness issues. They tend to speak naturally and openly disclosing their motives truly. If the interviews are conducted from inside then, the interviewers should be rotated so that a broader base of perception is gathered. Excellent timing: the interview should be conducted at the right time. Hence, conduct it after one week of employee departure and not right on the day of departure because mostly on that day it is hectic, the employee is emotional and stressed out. After a few days the employee is more clear-headed and will be able to answer the questions with a sound substantial mind been calmed down and settled in. But delaying the interview more than ten days reverses the impact. This is for resignation. For employees who have been terminated, interview should be conducted after 60 days as they take time to accept and settle down. Mornings are the best time to conduct interviews as it is usually when people are brighter and more willing to say. Some of the questions that the interviewer can ask are; What are your suggestions? Why do you want to leave? What would have made a difference? What do say about working here?

When the opportunity to the employee is handed over to open up and express, the employers need to listen to the complaints and unmet needs. Research suggests that money is hardly the only factor which makes the employee leave. There is accompanied dissatisfaction with the work place too no matter how small the cause of it is. Employers

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need to discover that. The interview should be ended on a positive note by the employer who needs to express his appreciation for the participation of the employee in such activities and thank him. Employer also needs to identify and analyze responses to check if new policies are needed for betterment. Exit interviews can also: Make the management aware of discrimination issues if any in the organization such as women or minorities might feel that they are not treated as equal or not given an opportunity for promotion. Hold the most talented retiring employees to work for the organization on a parttime or temporary basis once their interest is probed into by the interview.

Identify the organizations strengths and weaknesses for example low salaries. On the other hand they can emphasize on their strong aspects when hiring employees. Point out whether the turnover is internally located, leaving the organization only, or more externally located, leaving the industry altogether.

Limitation The interviews cannot always be relied upon as employees who are leaving because of the organization will not reveal the true cause of it and will be more cautious.

What information should the employer be interested in? Employer should focus on information that will help him to hire better. The employees giving the feedback in the exit interview process can help the company when they state for what position what skills are suitable or identify an error in the system. The company can always rectify the error and restructure their salary packages or their job descriptions.

Those who have seen the implications of turnover for their company take proactive steps in order to retain the employees. Employers today go and talk, communicate and find out if the hear that an employee is planning to leave the company. Cross-functional training and on-the job counseling are some effective ways to retain employees.(Giacalone, Knouse and Montagliani, 1997; Johns and Johnson, 2005).

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2.7.

STRESS FREE EXIT INTERVIEWS

When a time lapse of a few years occur, those on senior posts working within organizations tend to feel rusty and stagnant because there is no higher post to qualify to or not available as may be the case. They feel dissatisfied and a waste of talent. This then leads to exit interviews being conducted because turnover results due to dissatisfaction. Ahmed Shah, working at Solutions soft in Hyderabad decided to leave the company after a long time because he felt that his professional goals werent being achieved and the company didnt appreciate the efforts from time to time. As he was leaving, the exit interview phase proved to be a difficult one for him. Experts say that the employers and employees both should be prepared for giving exit interviews. Vice President Human Resources at Explore Design Pakistan, Muhammad Imran suggested that employees can submit in written what they want should be asked of them in exit interviews.

2.8.

THE FORMATION OF AN EFFECTIVE RETENTION MANAGEMENT PROGRAM

Each organization has a different criteria set for the kind of employee satisfaction they need and at what level they are facing the turnover. They should assess the situation according to their own needs as the management of turnover benefits the most when they are encouraging retention programs to keep back valued employees and replacing with a more effective staff. But there can be some general policies that can be applied everywhere when forming an employee retention program. Initialize and maintain a work environment which thrives on positivity, consistency and fair treatment of all employees. The senior management and the supervisors should show their own commitment to the organization.

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For keeping the employees expectations and perception intact, they should be given realistic job previews. There should be a close match between the person, his life style, the organizations culture and climate. They should be well aware of what is wanted of them and do they like it or not. Also a thorough examination of why an employee left his last job may provide the insight into the employees working and who hell lead to be.

Properly incorporate new employees into the organization and manage their expectations and initial experiences with the organization in fact, a large financial services firm found that it could effectively reduce turnover among new hires by deliberately improving the process of socializing new employees into the corporate culture, particularly through the use of mentoring.

Communicate realistic and attainable expectations of performance to all employees, so as to avoid the potential for shock and the development of dissatisfaction.

Give positive and constructive feedback on a regular basis, including through both formal job performance reviews and informal channels of communication with employees, as well as ensuring that viable reward and recognition programs are used to motivate all employees.

Offer clear-cut opportunities for job enhancement, advancement and career development. 2.9.

TYPES OF EXIT INTERVIEWS

The exit interview may be conducted through a variety of methods. Some of the methods include: in-person, over the telephone, on paper, and through the Internet such as with Nobscot's WebExit, exit interview management system. Pros and Cons of each method of Exit Interviewing In-Person Exit Interviews With in-person exit interviews an HR representative meets individually with each terminating employee.

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Pros

Can provide information regarding benefits and retrieve company property during the exit interview

Gives a personal touch to each employee Can probe for more information on each exit interview question

Cons

Employees may be afraid to share sensitive or negative information during an inperson exit interview

For larger companies, it may be too time consuming to exit interview every employee

It's difficult to track information received verbally during an exit interview

Telephone Exit Interviews Telephone Exit Interviews are conducted over the telephone by an HR Representative or an outside third party consultant. Pros

Can probe for more information on each exit interview question Enter data into a tracking system while conducting the exit interview Easier to schedule than in-person exit 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 Interviews

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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

Takes less time to provide an exit interview form compared with conducting an in person or phone exit 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 exit interviews

Online Exit Interview Management Systems Pros Employee self-service 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 WebExit customers) double that for paper and pencil exit interviews

According to a study by the Society of Human Resource Management, over 90% of companies conduct exit interviews. Exit interviews are one of the most widely used methods of gathering employee feedback. Tips to make exit interviews pleasant both for the employers and the employees:

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Be professional: No matter how bad an experience the stay in the company was for both parties, it is important for them to remain professional during the interview. More importantly for the employee since he would need the company to give a positive feedback to prospective employers. It is best to avoid demeaning conversations and negative feedback at this point. They do not serve any purpose to either party. Even if the employer is happy that an employee is leaving the company, he should refrain from stating it. Positive experience: Both the parties should necessarily have something nice to say about the other. If there isnt anything nice to say, civility should be maintained. Remember, the exit interview should be a positive experience. It does not have to be hostile. Honesty is the best policy. The purpose of conducting exit interviews is to improve the companys existing operating conditions. Employers could use honest feedback given by the employee for future improvements. Such feedback given by the employer at the time of exit is also useful to the employee to improve himself in future. Deal with facts not with opinions: Exit interviews should necessarily deal with facts and not opinions and emotions. This would only lead to personal arguments instead of a constructive feedback from both parties.

2.10. EXIT INTERVIEWS VERSUS EMPLOYEE SATISFACTION SURVEYS


One of the benefits of exit interviews over employee satisfaction surveys is that exit interviews are conducted when an employee is leaving. This diminishes the urgency in which a company must act on the feedback provided in the exit interview. With employee surveys, it's imperative to act on the results of the employee satisfaction surveys as quickly as possible. Once you provide employees the opportunity to tell you where the problems are, they expect immediate action on those problems. With exit interviews, you have a greater opportunity to review the data and look for trends over time. Employers can take action on problem areas as they see fit without causing further concern among employees.

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2.11. POST EMPLOYMENT EXIT INTERVIEWS


One of the newest fads is conducting the exit interview after the employee has been gone from the company for 3 or 6 months. The theory behind this exit interview strategy is that employee will have a better perspective on things once he or she has had a chance to reflect on his or her employment. Therefore, the employee is expected to provide more valuable information in an exit interview if it is held six months after employment. In research that Nobscot has conducted, this theory has yet to hold up. The majority of companies that have tried these kinds of Post-Employment exit interviews found that the results were similar to the exit interviews conducted immediately upon termination. Additionally, it's difficult and time consuming to reach employees this far after employment has discontinued. Generally, you can expect to get the most valuable information by conducting the exit interview a few days before or after an employee leaves the company. The employee's employment experiences are fresh in his or her mind and the employee is usually happy to express their final thoughts before leaving the company.

2.12. HOW TO IMPROVE EXIT INTERVIEW PARTICIPATION RATES


Exit interviews are one of the best ways to get true and honest feedback from employees. The downside is that it takes time to build up a significant amount of data. Increasing your participation rate can help you get greater amounts of actionable information quicker. What is a Good Participation Rate Research shows that the average response rate for paper and pencil exit interviews is approximately 30-35%. That means that a company with 2000 employees and 15% turnover rate would expect to receive about 100 completed exit interviews per year. At this participation level the organization is getting exit feedback from just 5% of the total employee population. With just a little extra effort, you should be able to double that response rate. Sixty-five percent (65%) or better is a good goal for exit interview participation. This can be accomplished with exit interviews completed by paper and pencil, a web based online system or by telephone.

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2.12.1 Measuring your Participation

To measure response rate, divide the number of completed exit interviews by the number of employees to whom you requested complete an exit interview. Ideally the second number should equal the total number of terminations but for practical reasons this is generally not the case. As an example, if you have 125 completed exit interviews out of 300 that you asked to complete an exit interview; your participation rate would be 125 / 300, which equals .416 or 41.6%. It is important to make sure you have a good method in place to track this kind of participation. At a minimum, you want to track participation rate at the start of an improvement project and then periodically thereafter. A more ideal scenario is to keep a running average that you can refer to regularly. This real-time number immediately alerts you to a fall off (or increase) in participation. An online exit interview management system should do this for you automatically. Large companies might want to track participation rates separately for subsidiaries, large divisions or geographic regions. Small to mid size companies can generally benefit from one total participation rate for the organization.
2.12.2 Analyzing Your Process

If you decide that your participation rate could stand improvement, the next step is to analyze your current exit interview process. The two most important areas for review are: Why employees choose not to complete the exit interview Logistical problems preventing human resources from getting the information to employees in a timely and effective manner.
2.12.3 Employees Not Completing Their Exit Interview

Some of the reasons that employees choose not to complete exit interviews are: - The exit interview is too long - The exit interview questions are confusing or personally invasive - The employee does not believe that it will be read or make a difference - The employee is afraid of repercussions

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- The employee is angry with the company - The employee procrastinates or forgets - The process is difficult or uncomfortable If you are using an exit interview survey with rated questions, 35-60 questions is about the right survey length. More than 60 questions begin to feel long and uncomfortable for the employee. If you surpass 70 questions, you should be prepared for higher numbers of uncompleted exit interviews. Review your questions for simplicity. Put yourself in the employees shoes and ask yourself how you would feel answering the questions. Avoid a lot of questions that ask for feelings and emotions. Many employees are not in tune with their feelings (or if they are they may not want to share them with you). It is a lot easier for an employee to rate the effectiveness of a process rather than how they feel about the process. Employees will not complete their exit interviews if they believe that the feedback they provide will not be read or will be promptly ignored. It is important to let employees know that you value their feedback. When you do make improvements based on suggestions from exit interviews, dont be afraid to tell employees where the idea came from. Over time, employees will learn that you do listen. Once this becomes a part of the corporate culture, you can be assured of lots of open and honest ideas, suggestions and critiques. Also be clear with employees that honest feedback will not result in repercussions. Statements made on an exit interview should never be used to prevent future eligibility for re-hire. There are many supposed experts that tell employees not to be honest on their exit interview or not to complete one at all. They claim that companies use this information against the employees. Human Resource professionals know that this is nonsense however they still must battle this unfounded perception. Employees that are angry with the company may feel they dont want to help by participating in the exit interview. These employees can be encouraged to vent their anger in the exit interview. Many of these angry employees are thrilled with the chance to have their voice heard and particularly if they know that it will be heard by senior management. A clean and simplified process is also important. Whether it is web-based

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or paper and pencil, the form should be laid out nicely with an intuitive and easy to understand survey form.
2.12.4 Exit Interview Feedback Ignored

Employees will not complete their exit interviews if they believe that the feedback they provide will not be read or will be promptly ignored. It is important to let employees know that you value their feedback. When you do make improvements based on suggestions from exit interviews, dont be afraid to tell employees where the idea came from. Over time, employees will learn that you do listen. Once this becomes a part of the corporate culture, you can be assured of lots of open and honest ideas, suggestions and critiques.
2.12.5 Repercussions From Honest Feedback

Also be clear with employees that honest feedback will not result in repercussions. Statements made on an exit interview should never be used to prevent future eligibility for re-hire. There are many supposed experts that tell employees not to be honest on their exit interview form or not to complete one at all. They claim that companies use this information against the employees. Human Resource professionals know that this is nonsense; however, they still must battle this unfounded perception.
2.12.6 Angry Employee Feedback

Employees that are angry with the company may feel they dont want to help by participating in the exit interview. These employees can be encouraged to vent their anger in the exit interview. Many of these angry employees are thrilled with the chance to have their voice heard particularly if they know that it will be heard by senior management. A clean and simplified process is also important. Whether it is web-based or paper and pencil, the exit interview form should be laid out nicely with an intuitive and easy to understand survey form.

2.13. IDENTIFYING LOGISTICAL PROBLEMS IN THE EXIT INTERVIEW PROCESS

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Logistical problems are the second major area for review. There are generally weak links in any process and exit interviews are no exception. Your examination should include the whole chain of events that begins when an employee gives notice and ends when the employee submits the exit interview. You can begin to audit your process by finding out the following information: - How do employees generally give notice of their intent to terminate? - Who is the first person notified and how much notice is usually given? - Who tells the Human Resource division and how? How soon after notice is given is HR notified? Who in HR is notified first? - Who is responsible for initiating the exit interview? When is this person(s) notified of employee terminations? - How is the employee notified of the exit interview? By whom? What method? When? - Is there clear ownership in Human Resources of the exit interview process? Do those involved in the process understand the importance and urgency of the exit interviews? - What is the employee told about the exit interview? In what ways are they encouraged to complete the exit interview? Are employees told more than one time and in more than one way? - Is the exit interview easy to complete? - When and where will the employee complete the exit interview? Is there easy access to necessary resources? - Does the employee have privacy in which to complete the exit interview if they are completing it at work? - Are supervisors and managers supportive of the exit interview process? Are they fearful about receiving negative feedback from employees? Are you relying on fearful supervisors to relay information about the exit interview to employees?

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- Is it easy for employees to submit their exit interviews? - Review each of the above audit questions and take a hard look at your process. Determine what you can do to improve on each of these areas.

2.14. EXIT INTERVIEWS AND KNOWLEDGE TRANSFER


The days, weeks (or months in some cases) between the decision for the employee to leave, and the employee's actual departure date offer a crucial opportunity for the organization to gather important information and knowledge from the employee. This is especially relevant in roles where the employee has accumulated a significant amount of knowledge and personal connections, as typically applies in sales and buying roles, and obviously business unit management. The knowledge of the departing employee commonly has immense value, and the recovery of it is often overlooked altogether by the organization, until the employee has departed, or more likely been hurried out of the door holding the contents of their desk in a cardboard box. (Stacey, 2003) When any employee resigns, or a decision is made for a person to leave for any reason, always ask: Should we spend some time thinking about how to enable some sort of knowledge transfer? In other words, if we place a value on the knowledge that the departing employee holds, isn't it worth thinking about how to enable this knowledge to be passed to the appropriate people remaining in the organization? Instead of course all too often, senior management's response to all the head-scratching after a vital person has left, is to rationalize the loss of information (and vital personal contacts often) with the old clich, "No-one is indispensable". The adage might ultimately be true, but that's not really the point. The fact is that most people who leave do actually possess useful (often critical) knowledge and experience. Moreover most departing employees are delighted to share this knowledge, to help a successor, or to brief a management team, if only the organization would simply ask them politely to do so (assuming their exit is handled decently of course, which the exit interview helps to enable).

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This is another good reason for thinking properly about the exit procedure, and for properly organizing some form of exit interview process. So much depends of course on the atmosphere surrounding the departure. Often, particularly in sales, there is suspicion and imagined threat on both sides, which rather weakens the chances of a helpful hand-over. This mistrust should be diffused - it really does nobody any good. In an ideal world the leaver should be encouraged and enabled (and arguably rewarded if necessary) to hold a briefing meeting, which all interested parties (and certainly the person's replacement if possible) can attend and learn what they need to know. I would urge you to take a more open constructive view. There are some suggested enabling questions below. For organizations large and small, exit interviews therefore provide lots of advantages and opportunities.

2.15. EXIT INTERVIEWS AIMS AND OUTCOMES

They provide an opportunity to 'make peace' with disgruntled employees, who might otherwise leave with vengeful intentions.

Existing employees see exit interviews as a sign of positive culture. They are regarded as caring and compassionate - a sign that the organization is big enough to expose itself to criticism.

Exit interviews accelerate participating managers' understanding and experience of managing people and organizations. Hearing and handling feedback is a powerful development process.

Exit interviews help to support an organization's proper HR practices. They are seen as positive and necessary for quality and effective people-management by most professional institutes and accrediting bodies concerned with quality management of people, organizations and service.

The results and analysis of exit interviews provide relevant and useful data directly into training needs analysis and training planning processes.

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Exit interviews provide valuable information as to how to improve recruitment and induction of new employees.

Exit interviews provide direct indications as to how to improve staff retention. Sometimes an exit interview provides the chance to retain a valuable employee who would otherwise have left (organizations often accept resignations far too readily without discussion or testing the firmness of feeling - the exit interview provides a final safety net).

A significant proportion of employee leavers will be people that the organization is actually very sorry to leave (despite the post-rationalization and sour grapes reactions of many senior executives to the departure of their best people). The exit interview therefore provides an excellent source of comment and opportunity relating to management succession planning. Good people leave often because they are denied opportunity to grow and advance. Wherever this is happening organizations need to know about it and respond accordingly.

Every organization has at any point in time several good people on the verge of leaving because they are not given the opportunity to grow and develop, at the same time, ironically, that most of the management and executives are overworked and stretched, some to the point of leaving too. Doesn't it therefore make good sense to raise the importance of marrying these two situations to provide advantage both ways - i.e., facilitate greater delegation of responsibility to those who want it? Exit interviews are an excellent catalyst for identifying specific mistakes and improvement opportunities in this vital area of management development and succession.

Exit interviews, and a properly organized, positive exit process also greatly improve the chances of successfully obtaining and transferring useful knowledge, contacts, insights, tips and experience, from the departing employee to all those needing to know it, especially successors and replacements. Most leavers are happy to help if you have the courage and decency to ask and provide a suitable method for the knowledge transfer, be it a briefing meeting, a one-to-one meeting between the replacement and the leaver, or during the exit interview itself.

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Exit interviews are best conducted face-to-face because this enables better communication, understanding, interpretation etc., and it provides far better opportunity to probe and get to the root of sensitive or reluctant feelings. However, postal or electronic questionnaires are better than nothing, if face-to-face exit interviews are not possible for whatever reason (although I remain to be convinced that there is never a proper excuse for not sitting down for 30 minutes with any departing employee...) In some cases perhaps a particularly shy employee may prefer to give their feedback in a questionnaire form, in which case this is fine, but where possible, face-to-face is best. In terms of managing the interview, listen rather than talk. Give the interviewee time and space to answer. Coax and reassure where appropriate, rather than pressurize. Interpret, reflect and understand (you can understand someone without necessarily agreeing). Keep calm, resist the urge to defend or argue - your aim is to elicit views, feedback, answers, not to lecture or admonish. Ask open 'what/how/why' questions, not 'closed' yes/no questions, unless you require specific confirmation about a point. 'When' and 'where' are also more specific qualifying questions, unless of course they are used in a general context rather than specific time or geographic sense. 'Who' should be used with care to avoid witch-hunts or defamatory risks (moreover many exit interviewees will be uncomfortable if asked to name people or allocate personal blame - exit interviews are not about 'blame', the allocation of which is not constructive and should be avoided for anything other than very serious complaints or accusations, which must then be suitably referred as follow-up would be beyond the normal exit interview remit. (Stacey, 2003) Prepare your exit interview questions and topics that you'd like to explore, especially when you believe that the interviewee has good experience, appreciation and understanding. Take notes and/or use a prepared questionnaire form. Importantly, see also the job interviews page for interviews techniques, which relate to exit interviews too. Remember simple planning aspects such as arranging a suitable time and place, avoiding interruptions, taking notes, preparing questions, being aware of the

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body-language and feelings of the interviewee and adjusting your own approach accordingly, etc. Obviously the style of exit interview is different for someone who is being asked to leave, retiring, being made redundant, dismissed, or leaving under a cloud, compared to an employee leaving whom the organization would prefer to retain. However everyone who leaves should be given the opportunity of an exit interview, and the organization can learn something from every situation. In certain situations (where appropriate) the exit interview also provides a last chance to change a person's mind, although this should not be the main aim of the exit interview situation. When the interview is complete say thanks and wish the interviewee well. If there is some specific checking or follow-up to do then ensure you do it and report back accordingly. After the interview look at the answers and think properly - detached and objective about what their meaning and implications. Take action as necessary, depending on your processes for analyzing and reporting exit interview feedback. If there's an urgent issue, or the person wants to stay and you want to keep them, then act immediately or the opportunity will be lost.

2.16. EXIT INTERVIEWS RESPONSIBILITIES, PROCESS AND OUTCOMES


Participation in exit interviews by the employee leaving is voluntary. Do not compel departing employees to attend exit interviews. Offer a questionnaire form alternative, which again must be voluntary. You cannot compel a departing employee to give you knowledge that is in their head, although the return of files, paperwork and material is normally something that an employer rightfully can insist happens. In any event, a positive constructive, grown-up approach is the best assurance of a happy outcome and an optimal transfer of knowledge and contact names, etc., should this be helpful, which often it will be. (Stacey, 2003)

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If you hear any of your people using the ridiculously confrontational maxim " No-one is indispensable. as a defense for not bothering to gather important knowledge from a departing employee it probably suggests that all opportunities for a cooperative handover have yet to be explored, so encourage people to explore them, or go explore them yourself. Ideally the organization should have a documented policy stating how exit interviews happen, when, and by whom. Some organizations hand the responsibility to a skilled interviewer in the HR or Personnel department. Alternatively line-managers or even supervisors can conduct the interviews. Interviewers need to be trained to interview, just as for normal job interviews. All types of interviews are sensitive emotional situations, which require ability and maturity to manage properly, especially if interviewees are anxious or volatile. In large organizations HR or Personnel department should be responsible for designing the process, issuing guidelines and documentation, collecting results data, analyzing and reporting findings, trends, opportunities and recommendations, especially including anything relating to health and safety, or employment law and liability. If you design a questionnaire or exit interview form which will be used as an input document towards central analysis it is a good idea to convert questions wherever practicable into a 'score able' and/or multiple-choice format, which makes analysis far easier than lots of written opinions. Actions resulting from exit interview feedback analysis, in any size or type of organization, fall into two categories: Remedial and preventative, for example improving health and safety issues, stress, harassment, discrimination., etc. Strategic improvement opportunities, for example improved induction, management or supervisory training, empowerment or team building initiatives, process improvement, wastage and efficiencies improvements, customer service initiatives, etc.

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The head of HR or Personnel would normally be responsible for raising these issues with the board or CEO, and the conversion of exit interview feedback into action is a critical factor in justifying and maintaining a serious priority and operation of the process. For many organizations, exit interviews provide a major untapped source of 'high-yield' development ideas and opportunities. Use them. (Black 1970; Feinberg and Jeppeson, 2000; Giacalone et al, 1997; Zarandona and Camuso 1985)

3.0. METHODOLOGY
This is a descriptive type of research conducted at two different sectors including the service, healthcare, pharmaceutical, FMCG and media Organizations. From each sector only one organization is chosen due to time constraints. From the each organization, 5 managers and 2 top management people will be interviewed personally and questionnaire survey through email/ telephone will be conducted from the rest of the positions including Asst. HR Manager, and officer grade people from various departments including HR department. Convenient sampling is being used as to ease the researcher in collection of the data. The total sample size will be of 20+20+20+20+20=100. The model approach which has been applied is cognitive interview model approach. The background theory underlying cognitive interviewing has been represented by various models (Jobe and Herrmann, 1996). The most general model is attributable to Tourneau (1984), and in brief, consists of the processes of asking questions such as the meaning of terms and question intent, retrieval from memory of relevant information, decision and response processes. There are two major sub-types of cognitive interviewing methods, referred to as thinkaloud interviewing, and verbal probing techniques. The think aloud method entails that interview derives from psychological procedures described by Ericsson and Simon (1980). Consistent with recent practice (Willis, et al., 1999), the term think-aloud is used here to describe a very specific type of activity, in which subjects are explicitly instructed

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to "think aloud" as they answer the survey questions. The interviewer reads each question to the subject and then records and/or otherwise notes the processes that subject uses in arriving at an answer to the question. The interviewer interjects little else, except to say "tell me what you're thinking" when the subject pauses.

4.0. THE DESIGN METHODS AND PROCEDURES


4.1. RESEARCH PLAN AND DESIGN

The study will be based on survey and questionnaire for data collection across a diversified population through sampling. One hundred employees belonging to different departments are selected using convenience sampling. To the selected sample questionnaire will be given. The selection will be done by selecting every 3 person from the departments. Interviews will be done with Human Resource, Training and Development and Admin officers and Managers. There are many researches we had found in research journals, internet articles, newspapers, magazines and books on the related topic and also paper written by working experience officials of human resource departments in various organizations. All these type of data will make possible for me to complete my project more informatics and resultant.

4.2.

DATA, POPULATION TARGETED AND SAMPLE SIZE

The population includes all employees of various skills. The sample size of 100 will be selected due to time and other resources constraints. This made the research to focus and limit to 100 sample size. For the literature review primary and secondary sources will be used. Secondary sources included emerald journals, training and development journals, human resource management journals, various books and web pages will be seen. The research will be focused on exit interviews, media, pharma, fmcg, healthcare sector, newsletters, notices, exit interview policies, productivity and performance. Later a questionnaire was developed and used as research tool for finding the results.

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4.3.

THE INSTRUMENT AND TOOL OF MANAGEMENT

The instrument employed in the study for conducting the primary research was a close ended questionnaire on a scale of 1 to 5 and given to 100 respondents. The survey will be divided into two phases: a) The interview meetings will be conducted with Manager from Human Resource, Marketing , Finance, Production and Training & Development departments as well as officer ranked people were interviewed and questionnaire were filled..

b) In the second phase questionnaire will be administered to 75 employees belonging to various organizations. Each employee will be given 5 days to fill the questionnaire. c) reason for adopting this method

There is freedom from biasness on the interviewer side. Little training or expertise is required since the interviewer only has to read the survey. Also because the subjects verbalization is guided only minimally, he or she may provide information that is unanticipated by the interviewer. Therefore, thinkaloud interviewing is especially valuable when the subject is outgoing, articulate, and has had significant experience with the topics covered by the survey questions. (Stacey, 2003)

Validation Standardization Questionnaire

The validation questionnaire was pretested from a sample size of 15 people. The respondents answered regarding validation that it means to confirm. To ascertain and satisfy one self or to prove that the instrument measures the desired outcome correctly and means that it confirms that the instrument was right to use in this context. The sample size at minimum is determined between 50 and 200. The sample size needed to internally validate was marked around 100. The reason being that mostly this is the figure around which for a particular project students are able to reach others in a limited time and sphere of study. Moreover, the samples needed to answer the research

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questionnaire also laid around 30 to 45. This being the approximate figure which makes the majoritys opinion but it should be noted that it samples validation usually depends upon the population size as well. Respondents evaluated that mostly using different sets of samples for validation is a good idea as it further checks upon cross validity and how the same attribute is perceived at different levels, or rather, does a difference exist or not. Therefore different positions were mentioned out of which they most readily chose HR managers and assistant HR managers as they are mainly in the communication sphere more. Validation should be standardized so that the findings do not variant at in different scenarios. Respondents chose that a standardized process should be available for validation and a set of guidelines to be provided to make the process easier. Using a standard set of samples would make the process simpler.

5.0. ANALYSIS
Step 1 Hypothesis: 1 HO1: Exit interviews are not accurate, in terms of capturing a true picture of employee feedback. HA: Exit interviews are accurate, in terms of capturing a true picture of employee feedback.

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Step 2 Answer the S.NO 1 2 3 4 5 Criteria Always Usually sometimes Rarely Never Respondent 31 41 15 12 1 Of

Observed

Expected (O(O-E) 11 21 -5 -8 -19 (O-E)2 121 441 25 64 361 E)2/E 6.05 22.05 1.25 3.2 18.05 50.6

Frequency Frequency Abbreviation "O" A U S R N Total 31 41 15 12 1 100 "E" 20 20 20 20 20 100

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Goodness - of -Fit tests


Observed Frequency "O" Expected Frequency "E"

41 31 20 20 20 15 20 12 4 5 20 1 1 2 3

Critical Value Degree Of Freedom 5-1=4 Value Of Critical 9.488 when =0.05 Step 3 Compute The Test Value 50.6 Step 4 Make Decision The Decision is to reject Null Hypothesis ,Since 15.7 > 9.488 Because TEST Value Greater Than Critical Value Step 5 There is enough Evidence to Reject the Claim that Exit interviews are not accurate, in terms of capturing a true picture of employee feedback

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Z Test of Hypothesis for the Mean Data Null Hypothesis Level of Significance Population Standard Deviation Sample Size Sample Mean 3 0.05 1.13 100 2.38

Intermediate Calculations Standard Error of the Mean 0.112618064 Z Test Statistic 5.505333508 Lower-Tail Test Lower Critical Value p-Value Reject the null hypothesis 1.644853627 1.84235E-08

6.0. CONCLUSION AND RECOMMENDATIONS


6.1. CONCLUSION

This study is the first large scale analysis of exit interviews in Pakistan. Over 48 exit interviews, from 5 different sectors have been used as source data.. In addition, in depth

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semi-structured interviews have been used to gain insight into the practice and perceptions around exit interviews. As a result of this study, serious questions have been raised about the cost/benefit advantages of running exit interviews. Turnover research has focused excessively on the antecedents, and has neglected the consequences and prevention of turnover. As a result, this study highlights the significant gaps between the conceptual research and the management practice. The concept and practice of exit interviews superbly illustrates this gap, since conceptual research states that exit interviews are a powerful tool to combat turnover. However, analysis of the outputs of exit interview data shows that few links can be made back to organizational improvement. While this study makes some suggestions for the improvement of the exit interview process below, larger questions around the nature of power relationships, the psychological contract and disengagement need to be addressed if exit interviews are to ever justify the effort put into them by these industries. Feldman & Klaas (1999) conclude that employees tend to disclose their honest reasons for leaving when data is treated confidentially, when it does not result in a negative reference from their direct supervisors, and when they believe that, in the past, the employer has taken action on problems identified in exit interviews.

The findings conclude that organizations all too often focus on the reasons for leaving in interviews, rather than the attitudinal and organizational causes for turnover. It is this question of what questions should be asked in exit interviews that are of greatest interest. These organizations Managers should consider focusing exit interview questions around key organizational and attitudinal hot spots, from which suggestions for changes in organizational practice could be made.

6.2.

RECOMMENDATIONS

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This study raises the need for further research in the area of voluntary employee turnover in Pakistani organizations and the Human Resource Management practices that are aimed at understanding it. Successful responses to what are very high turnover rates in these organizations will require accurate and relevant data. This research has questioned the usefulness of exit interviews in producing data that can be used to understand the turnover in these organizations. A study of the entire network of HR feedback systems and their relationship to turnover would be advantageous. An especially interesting field of research would be tracking the process of preemployment expectations and psychological contract. Comparing this early psychological contract formation to the ongoing process of engagement/disengagement over the first year of employment would be of great interest. If we accept that the early organizational entry and socialization process is crucial to eventual turnover decision, it would be of great value to study this area.

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Stacey, H. (2003). Retrieved from http://www.ombo.nsw.gov.au/ChildProtectionSymposium/Presenations/NSW%20 Ombudsman%20Slides/For%20Tuesday%20Slides/4C%28i%29%20%20Harriet%20Stacey.pdf

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U.S. Department of Labor, Bureau of Labor Statistics. (2009). Occupational Employment Statistics Highlights. Retrieved from http://www.bls.gov/oes/.

24.

Willis, G., DeMaio, T., & Harris-Kojetin, B. (1999). Is the Bandwagon Headed to the Methodological Promised Land? Evaluation of the Validity of Cognitive Interviewing Techniques. In M. Sirken, D. Herrmann, S. Schechter, N. Schwarz, J. Tanur, & R. Tourangeau (Eds.), Cognition and Survey Research. New York: Wiley. Zarandona, J.L &. Camuso, M.A. 1985, A Study Of Exit Interviews: Does the Last Word Count?, Personnel, vol. 62, no. 3, pp. 47-8. Zima, J.P. 1983, The Exit Interview, in Interviewing Key to Effective Management, GMI Engineering and Management Institute, pp. 345-71.

25.

26.

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APPENDIX
RELIABILITY TEST Reliability Scale: ALL VARIABLES
Case Processing Summary N Cases Valid Excluded Total
a

% 40 0 40 100.0 .0 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics Cronbach's Alpha .738 N of Items 10

Survey Questionnaire
Note: This survey will be incorporated into a project for the Thesis Completion. Your assistance with completing the survey is requested. To complete, please place a mark next to the response that you feel most accurately addresses each statement. (General background information please circle one number for each of the following categories)

47

Marital Gender Age Income Level Status

Size

of

your

organization

M/F

a) b) 31-40 c) d) 51-60 e) 60 and over

20-30

a) Below Rs 25000 b) Rs 26000-50000

a) Married b) Widow c) Divorce d d) Single

a) 0 -50 b) 51 100 c) 101 500 d) 501 1000 e) More 1001 than

41-50

c) Rs 51000-74000 d) Above Rs 75000

Most Recent Position

Length of Service

Education

a) Admin/Managerial b) Professional c) Secretarial/Clerical d) Technical e) Service & Maintenance f) Skilled Trades

a) Less than one year b) One but less than two years c) Two but less than five years d) Five but less than ten years e) Ten or more years

a) Less than high school b) High School Diploma or

equivalent c) Associate's Degree d) Bachelor's Degree e) Master's Degree f) Ph.D. g) Other

Q1. Describe the organizations exit interview process. a) Very lengthy b) Lengthy c) Troublesome d) Cant say e) Dont know

Q2. When does it happen? a) Immediately after resignation b) On day of leaving c) On day of adjustments

d) After handing and taking over procedures

e) As per procedure _______________

Q3. How accurate do you think exit interviews are, in terms of capturing a true picture of employee feedback? a) Very much b) Much c) Cant Say d) Low e) Very low

48

Q4. Employee exit interviews should focus on retention by identifying why the employee is leaving. a) Strongly Agree b) Agree c) Neither d) Disagree e) Strongly Disagree

Q5. Effective employee exit interviews are an opportunity to diagnose and improve performance within the company. a) Strongly Agree b) Agree c) Neither d) Disagree e) Strongly Disagree

Q6. In your opinion what are the results of Employee Exit Interview Surveys. Please rank. [Note all that apply to the employees situation. Number them in order of importance 1 = most important, etc.]

a) ____Improving employee retention and reducing turnover. b) ____Increasing company objectivity by having employee exit interviews handled by a fair and non-partisan third-party. c) ____Benchmarking against industry and company norms for the exit interview survey items. d) ____Comparing exit interview scores against the overall Employee Satisfaction Tracking Survey to determine if employee satisfaction impacts turnover rates. e) ____Tracking trends in employee exit interview satisfaction to measure improvements made.

Q7. Employment environments with low levels of employee retention reflect low levels of job satisfaction. a) Strongly Agree Disagree b) Agree c) Neither d) Disagree e) Strongly

Q8. Do you think there are issues of power imbalance at work in the exit interview process? a) Strongly Agree b) Agree c) Neither d) Disagree e) Strongly Disagree

Q9. Have you made any changes recently to the exit interview process? a) Very much b) Much c) Cant Say d) Not much e) Very few

Q10. Are the exit interviews done online or in-person? a) Yes / Always b) No c) May be d) Cant say e) dont know

Q11. It is universally accepted that only about one-third of employees leaving an organization complete an exit interview.

49

a) Strongly Agree Disagree

b) Agree

c) Neither

d) Disagree

e)

Strongly

Q12. Dont you think online respondents tend to be more frank and likely to provide related experiences? a) Strongly Agree Disagree b) Agree c) Neither d) Disagree e) Strongly

Q13. Employee exit interview questions should be simple and short, focusing on evaluations of different job components and identification of needed changes.

a) Strongly Agree Disagree

b) Agree

c) Neither

d) Disagree

e)

Strongly

Q14. Is important to realize that questions about feelings and emotions are particularly difficult, especially if the employee has been terminated from the job. a) Strongly Agree Disagree b) Agree c) Neither d) Disagree e) Strongly

Q15. Who should evaluate the employee and conduct exit interview? a) HR director b) HR Manager e) Just let go c) Asst HR Manager d) In this case online interview

should be conducted

Q16. What is the most common reason identified during an exit interview done by you. Please rank and circle. [Note all that apply to the employees situation. Number them in order of importance 1 = most important, etc.]

a) ___ Moving out of the area b) ___ Difficulty with work and family scheduling c) ___ Limited career advancement opportunities d) ___ Inadequate pay e) ___ Inadequate benefits f) ___ Unhappy with job duties g) ___ Unhappy with working conditions h) ___ Unhappy with supervision i) ___ Family responsibilities j) ___ Pursuing new opportunities

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k) ___ A job offer you cant refuse l) ___ Other: ________________

Q17.Exit interviews are accurate, in terms of capturing a true picture of employee feedback.
a) Always b) Usually c) sometimes d) Rarely e) Never

Q18. What Factors were identified or pointed by departing employees which affected their Departure. Please respond by circling one number below for each item.

Strong influence to stay (SRITS) Factors Affecting Departure

Slight influence to stay (SITS)

SRITS

SITS

No effect 3 3 3 3 3 3 3 3 3 3 3

Slight influence to leave 4 4 4 4 4 4 4 4 4 4 4

Strong influence to leave 5 5 5 5 5 5 5 5 5 5 5

Not applicable 6 6 6 6 6 6 6 6 6 6 6

A. Work Load B. Relations with coworkers C. Job security D. Quality of received E. Flexibility of work hours F. Salary G. Benefits H. Geographic location of supervision I

1 1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2

Company I. Commuting distance J. Family concerns K. Non work-related personal life L. Your overall perception of the Companys ability to deal

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fairly with staff

Thank You For Your Cooperation

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