What is a stay interview and how does it boost retention?
May 20, 2024
by Julie Caplan, Marketing Content Program Manager, Paychex
Stay interviews, or retention interviews, are opportunities for companies to receive information from current employees that can help improve employee retention and gain understanding of why top employees are satisfied with their job. They can also alert you to existing problems that can be mitigated before top performers leaves the company.
Why should you conduct stay interviews?
Generally, employers conduct stay interviews to better understand the motivations, ambitions, and mindset of their valued employees. A stay interview allows for a one-on-one conversation between a manager and employee to highlight any "risk factors" about the job. This conversation can encompass current working conditions as well as candid employee feedback about the company's culture and other conditions related to job performance.
What are the benefits of a stay interview?
One of the key benefits of conducting a stay interview is learning why an employee may be thinking of leaving their job before that decision is made. Stay interviews can also inform future company actions and strategies by:
- Providing insights into manager performance - A conversation with an employee can uncover areas where managers might improve their own performance. Dissatisfaction with one's manager is often a key reason employees leave.
- Detecting patterns - Interviewing different employees may reveal patterns worth exploring further. The more you learn about what keeps valued employees happy, the more effective you can be at retaining them.
- Fostering engagement – Providing feedback can lead to greater employee engagement, as employees can feel valued and heard. For employers, stay interviews can identify early warning signs of problems to address.
- Getting valuable feedback - Asking about a range of topics (work environment, schedules, benefits, etc.) could prove useful when forming long-term business strategies and identifying new or shifting areas of concerns.
- Improving employee retention - Stay interviews may reveal an employee’s dissatisfaction before they leave the company. Company-wide trends can also help businesses prioritize which changes are needed for overall retention.
When should you conduct stay interviews?
After you set an initial schedule for stay interviews, pay close attention to the feedback received. Based on what you learn, you might adjust the number and frequency of interviews conducted.
Who should conduct stay interviews?
Managers often have an established relationship with their employees that can serve as a jumping point for the stay interview. By developing an open and honest line of communication, managers are most likely to receive input that can improve the work environment and help keep employees engaged.
It may also make sense for other personnel, such as senior executives, owners, or human resource managers to conduct stay interviews. Anyone who conducts stay interviews should receive proper training and feel prepared to manage the process.
Who should receive a stay interview?
Formalizing the process of who companies should conduct stay interviews with can ensure you are getting the information you need. Decide who can provide useful feedback for future retention or hiring strategies. You might include top performers and long-tenured employees.
How to conduct a stay interview
Everyone participating should understand why the interviews are taking place and the overall goal of them. Setting a company standard for stay interviews can ensure equitable treatment and consistency. You should also:
- Determine employees to interview
- Determine who will conduct interviews
- Choose a location
- Communicate with the employee about the interview
- Schedule and conduct the interview
- Document results
Questions to ask during a stay interview
Prior to conducting interviews, consider what feedback you hope to receive. Asking open-ended questions encourages discussion and allows the employee to explain what they like or dislike about their job. Some possible questions to ask:
- What motivates you to come to work every day?
- Are there areas where you feel most discouraged in your job?
- What might entice you to seek employment elsewhere?
- How do you feel your work contributes to the success of our business?
- Are you satisfied or dissatisfied with the recognition you receive?
- What skills can we help you develop?
- How would you rate your work/life balance and how could we improve it?
Stay interviews can lead to a better understanding of your business
For stay interviews to be effective, employees should have trust in their manager. Remember, the goal of these conversations is to find out what a company is doing well and identify any changes needed. If a business owner fails to follow through, employees may feel disheartened and begin searching for a new job.
A stay interview can offer significantly more benefits to an employer than a departing employee's exit interview. You'll have the opportunity to better understand a valued employee's motivation and potentially address any issues that could otherwise lead them to leave.
Read the original article at Paychex.