Welcome to the September edition of the HR Advisor Newsletter. This month we go over the formats, questions, and uses of exit interviews, as well as the proper way to calculate overtime.
How Conducting Exit Interviews Can Help You Increase Retention
The exit interview is a conversation with a departing employee about their time at the company and the reason for their departure. It’s completely optional, but some employers conduct them to learn about workplace issues they may want to address. Exit interviews can shine a light on toxic management practices, hostile work environments, departmental conflict, and employee concerns that haven’t been shared with management or HR. They’re often more informative than regular check-ins because departing employees have little to lose in being candid. Exit interviews are only useful, however, if you’re willing to act on the information you receive.
The Formats
Exit interviews typically use one of two formats: an in-person interview or a form the employee completes on their own. Each format has its advantages. The interview allows for further questioning in the event the employee mentions something you’d like additional information about. The written form option lets the employee give more consideration to each question and answer each one at a pace that works for them.
Tips Before You Get Started
- Conduct an in-person exit interview as close as possible to the end of employment (e.g., the last hour of their last day of work).
- Make the departing employee as comfortable as possible and encourage open, honest communication. Meet somewhere private and make sure to allow enough time for a meaningful conversation.
- Avoid having the employee’s direct supervisor conduct the interview, if possible.
- Offer a form to the departing employee instead of conducting an in-person interview if you have concerns about safety or the departing employee’s temperament.
- Explain that the interview is for informational purposes and for the betterment of the organization and their coworkers.
- Say that you will take notes and that you will keep them as confidential as possible. Note that certain allegations must be discussed with management.
- Assure them that concerns or information shared in good faith will not be communicated to future employers or negatively affect a reference check.
The Questions
The interview typically begins with questions about why the employee is leaving. In this line of questioning, you should ask why they sought employment elsewhere, whether the company or manager could have done anything differently to keep the employee there, whether the employee explored any options that would have enabled them to stay, and what the employee’s new company does better.
If the employee had a bad working experience at your company, it’s good to find out why. Ask the employee to talk about any problems, unresolved issues, or other matters not handled to their satisfaction. Did their supervisor demonstrate fair and equal treatment? Provide recognition on the job? Develop cooperation and teamwork? Encourage and listen to suggestions? Resolve complaints and problems? Follow policies and practices? You might get answers you don’t want to hear, but they’re invaluable if you’re serious about improving employee retention.
Working relationships are foundational to employee morale and success, so ask about them! What situations, practices, or behaviors hindered collaboration? How could those be changed? Was communication good or bad? What made it that way? What practices or working conditions were beneficial and should be maintained or enhanced?
The exit interview is also a good opportunity to get the employee’s perspective on the training they received, the benefits the company offered, the growth potential the employee felt they had, the performance review process, and their assessment of employee morale. At the end of the questioning, ask the employee if there’s anything they’d like to add.
Next Steps
Once you’ve completed the exit interview, put the information you receive to good use. Share it—as appropriate—with the leaders in the company. Some of these conversations might be difficult, especially if you’re having to address sub-par management practices, correct unproductive working conditions, or investigate harassment. But exit interviews will be useful only if you’re willing to have these conversations and make changes based on what you learn.
Did You Know?
Only hours actually worked count toward overtime when determining if employees are owed time and a half for hours over 40 in a workweek. For instance, if Monday was a paid holiday observed by the company – meaning no one worked and everyone got paid – a non-exempt employee could still work a full 40 hours in that workweek without being in overtime territory (barring any daily overtime that might be applicable). In the case of a paid 8-hour holiday and 40 hours of work, the employee would receive 48 hours of straight time; the breakdown of holiday pay and regular pay should be reflected on their paystub to avoid confusion and fend off future wage claims. The same applies to vacation time, sick time, and other non-working leaves – the overtime premium only applies if more than 40 hours of real work are done.
HR Tip of the Month
Unless there is a contract or agreement to the contrary, employers are under no obligation to keep an employee on during their resignation notice period or to provide them with compensation for the duration of that period. However, there are a couple of issues to consider before accepting an employee’s resignation early.
First, if you ask the employee not to work the remainder of the notice period and do not pay them for that time, the resignation may become an involuntary termination in the eyes of the state’s unemployment insurance department. Note that the effect of a single claim on your UI tax rate is likely to be small to non-existent. However, if you’re concerned about that, you can pay the employee for the full notice period, but ask them not to come into work.
Second, terminating the employee before their resignation period comes to an end could motivate other employees to forego giving adequate notice in the event they resign. By terminating an employee immediately, rather than letting them earn two more weeks of pay, you’re effectively telling other employees that you don’t honor notice periods. As a result, they may not see the point in giving you that courtesy.
Ultimately, the choice to terminate early – with or without pay – is up to your discretion. There are certainly good reasons to ask an employee not to return to the office once they have offered you notice. Just keep in mind that there may be other reasons to go ahead and pay them for their notice period, even if you don’t want them to continue to work.
Contact Us
Anchor Payroll
PO Box 39
Chester, NJ 07930
Phone: 800-660-7089
Fax: 888 600 0191
Email: info@anchorpays.com
