During an annual stay interview at my company, Lawline, one of our top employees made a surprising comment: “I am at a point in my career where I want to grow. In my current role, I can’t see that happening beyond one year.” This wasn’t an isolated conversation between peers or a casual remark made to a manager—it was a wake-up call. We were caught off guard because we hadn’t realized this employee was considering leaving. She was someone we were keen to develop further, seeing her as a long-term asset.
This conversation underscored the value of stay interviews, a powerful tool for understanding employee motivations and retaining top talent. Since starting stay interviews 3 years ago, these interviews have become a cornerstone of our retention strategy, providing insights that traditional methods like exit interviews and employee surveys often miss.
Stay interviews are structured, one-on-one conversations aimed at understanding an employee’s job satisfaction, motivations, and potential areas for growth. These interviews, typically conducted annually between an HR team member and the employee, are quasi-anonymous. While HR shares overall feedback with senior leadership, specific details are only shared with an employee’s permission.
The goal is simple: to boost employee engagement and retention by addressing their needs and desires before they consider leaving. When implemented effectively, stay interviews can significantly enhance job satisfaction, reduce turnover, and foster organizational growth.
Exit interviews offer insights when an employee is already leaving, limiting opportunities for immediate improvement. In contrast, stay interviews focus on understanding why employees stay and how their experience can be enhanced, allowing for timely interventions.
While employee surveys provide broad, company-wide feedback, stay interviews offer a more personalized view. Surveys like Employee Net Promoter Score (NPS) capture overall sentiment but lack the depth and actionability of individual feedback from stay interviews. Stay interviews result in specific action plans tailored to each employee, making them more effective for driving engagement and satisfaction.
Engaged employees are passionate, committed, and put extra effort into their work. Stay interviews foster open dialogue, enhancing engagement by showing employees that their feedback is valued and taken seriously. This often leads to increased productivity and lower turnover rates, benefiting the organization's bottom line.
In a competitive job market, retaining top talent is crucial. High turnover rates are costly, involving expenses related to hiring, onboarding, and training new employees. Stay interviews allow organizations to proactively address potential issues, improving retention and saving on turnover costs.
According to a Salesforce study, employees who feel heard are 4.6 times more likely to perform at their best. Stay interviews increase satisfaction by ensuring employees know their opinions are valued, fostering a positive work environment that promotes efficiency and drives revenue.
Stay interviews provide insights into individual aspirations and career goals, enabling organizations to tailor professional development programs to meet specific needs. This personalized approach fosters a culture of learning and growth, leading to higher employee performance and increased profitability.
Trust between employees and HR is critical for a collaborative work environment. Stay interviews demonstrate that the organization values employee opinions and experiences, increasing loyalty and productivity, which positively impacts the organization’s financial health.
The insights from stay interviews provide valuable data for strategic planning, highlighting strengths to leverage and issues to address. This information helps inform decisions that affect the organization’s overall health and profitability.
Stay interviews can identify factors affecting employee wellbeing, potentially reducing absenteeism (frequent leave) and presenteeism (being present but not fully productive due to health issues or low morale). Both can have significant financial impacts, and addressing these issues can improve organizational performance.
The effectiveness of stay interviews depends on the questions asked. Here are some questions that can provide insightful data:
At Lawline, the feedback from stay interviews has directly influenced the development of our professional development programs. By aligning these programs with employee needs and ambitions, we’ve enhanced engagement, satisfaction, and performance. Examples include:
After a stay interview, it’s essential to ensure employees feel heard and see action being taken. Establish a feedback loop where employees are updated on actions resulting from their feedback. This can be achieved through follow-up meetings or communications to share progress updates.
Returning to our earlier example, the employee who expressed a desire for growth was interested in moving to a different department, where we happened to have an open entry-level position. With her permission, we shared her interest with senior leadership and facilitated the transition. One year later, she is thriving in her new role, benefiting both her department and the company.
Stay interviews exemplify how simple, thoughtful conversations can lead to significant improvements and growth within an organization. I encourage all HR leaders to consider incorporating stay interviews into their retention strategies to achieve company goals and reduce turnover. If you’re interested in learning more about our experience over the past three years, please reach out to me to discuss it further.
