7 tips for employee retention-boosting stay interviews

7 tips for retention-boosting 'stay interviews'

April 20, 2022 2:11 PM

Workers across the U.S. are questioning why they should stay with their current employer — but should employers ask their talent the same question? That’s where the stay interview comes in.

The stay interview helps managers understand how employees feel about their current role and growth opportunities, ideally before the employee would even consider looking elsewhere. According to Willis Towers Watson’s 2022 Global Benefits Attitudes Survey, 44% of employees are searching for new jobs in the name of better pay and benefits, hinting at the great resignation’s longevity.

“If companies are focused on keeping their employees, the stay interview can be a great indicator of why an employee may not be as happy as they once were, or why they might not stick around,” says Kate Grimaldi, senior director of enterprise talent strategy at Paylocity, a payroll management company. “Employees should also know that their opinions matter — that they have a voice at their company.”

For Grimaldi, stay interviews not only offer a chance for managers to understand whether their talent wants to leave, but what would motivate them to stay. However, the stay interview will not be effective if a manager only asks about an employee’s willingness to stay. Here are Grimaldi’s seven best tips and practices for conducting productive stay interviews.

Start the interview with some observations

Rather than starting a stay interview with questions surrounding retention, managers should voice a few observations about the employee’s performance and challenges they recently encountered. This shows that the manager is aware of who this employee is as an individual and has a vested interest in them, explains Grimaldi.

“A common mistake interviewers make is asking about that employee’s happiness at the company without building any rapport or sense of trust,” she says. “If people don’t feel comfortable, they won’t share.”

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The observations can be as simple as noting that an employee has been taking on a bigger workload or shown interest in projects outside their usual focus. This can push employees to share their experiences, concerns and uncertainty, says Grimaldi.

Discuss the employee’s current workload

Since an employee’s bandwidth may be stretched thin, especially if there has been recent turnover, Grimaldi encourages managers to learn what kind of support their employees are lacking.

“Not every employee has the same feelings about work — some work to live and others live to work,” says Grimaldi. “It’s good to know where people fall so you can give them the opportunity to be honest about their workload and needs.”

Discuss company-wide initiatives

Stay interviews can also help managers understand if their company’s initiatives positively impact workers or if it’s more trouble than it’s worth. For example, employees are less likely to stay at a company that invests in projects or changes deemed irrelevant or even damaging by employees, explains Grimaldi.

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“Whether it’s related to talent, DEI, development or corporate social responsibility, I love to ask employees how they feel about company-wide initiatives,” she says. “If employees do not see these initiatives as relevant or driving value, something has to change.”

Explain how the employee is contributing to their company’s success

Grimaldi notes that employees are also more likely to quit if they feel undervalued and underappreciated by their managers and colleagues. The stay interview is an opportunity to articulate just how valuable the employee’s contributions are to the company.

“It’s incredibly important that every employee feels like they’re making a difference,” says Grimaldi. “No matter the role, tell your employees directly how their work is impacting the company's overall success.”

Don’t overlook compensation

While salaries and raises can prove to be a touchy subject for employers and employees alike, it’s a necessary topic during a stay interview. According to the Willis Towers Watson survey, 56% of workers consider pay the number one reason to look for another job.

“We have to ask ourselves if our workers are being paid what they’re worth,” says Grimaldi. “Even if we can’t offer the ideal pay, we should at least make our employees feel heard and meet them where they are.”

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This means managers may want to explain how the company decides salaries and raises, delving into the logic behind the employee’s current pay. Even if the employee isn’t happy, the manager can at least make it clear that they are valued, even if the pay does not reflect that, Grimaldi explains.

Ask employees why they started working at their current company

Stay interviews can allow employees to reflect on their original motivations for joining the company, and consider whether that motivation is still present. If managers understand what motivates their employees, they can offer opportunities and projects that spark an employee’s drive, Grimaldi says.

“It’s important to ask about the employee’s original intent for coming to your company,” she says. “This is about knowing what they wanted to do and if they are getting to do it after all this time.”

Ask employees what the future holds for them

Rather than just asking if the employee wants to stay, ask several questions regarding how they envision their future and how their current job can fit into the picture.

“You can still ask questions like, ‘What would make you leave?’ and ‘Where would you want to go?’” says Grimaldi. “But the stay interview isn’t just about trying to figure out if the employee is considering another position — it’s about communicating that you value the employee’s experience and want to retain them.”