Stay interviews: The key to employee retention in 2022
Paylocity's Calvin Sun shares his thoughts on how companies can use stay interviews to create more impactful communication with employees.
Keeping the talent pipeline full is shaping up to be one the most pressing issues for employers and their HR departments this year. Labor shortages are impacting industries of all types all across the country. One way to help ease the burden is to minimize the rate of resignations by existing employees. Not only does this reduce the number of open positions that need filling, but cuts back on onboarding, training and other administrative tasks associated with new hires.
So how can companies stem the outflow of valuable talent? Reports highlight everything from increased wages to flexibility and remote work. And while these are overall good strategies, each individual employee is seeking something different. And the best way to find out what that is is simply to ask them.
Related: Are you listening? Employee retention hinges on company culture
Calvin Sun senior director of compensation, benefits and talent analytics for Paylocity, recently shared his thoughts on how companies can use “stay interviews” to create more impactful communication with employees and ensure their career needs are being met.
Organizations have been getting creative throughout the pandemic with retention strategies. How are you tackling this at Paylocity?
Employees today expect flexibility. We have tried to offer more flexibility across the organization with creative approaches like split schedules or flexible schedules (40 hours in 4 days or 80 hours in 9 days). For financial flexibility, we also rolled out a PCTY loan program, offering interest-free loans to any employees in need, and we have offered on-demand payment for several years. And to promote wellness, we partnered with our providers to offer specialized programs in areas like diabetes, joint health, and weight loss. We also worked with our DEIA employee resource group to ensure our benefit plans serve the needs of all employees.
Another way we are different is our use of the “stay interview” approach as part of our overall retention strategy. To head off the need for exit interviews, we encourage managers to set up regular conversations with employees to gauge their overall wellbeing and how they feel about their jobs. Unlike formal performance reviews, the stay interview is an open, genuine conversation to uncover employees’ needs and interests, so they can find growth without leaving.
What makes the stay interview beneficial as opposed to other strategies?
It is hard to find good people but keeping them engaged is an even greater challenge. The stay interview is more beneficial than other retention strategies because it is more personal. Formal sit-downs can come off as rigid and impersonal, and we are trying to create moments for employees to voice their feelings to managers, helping them feel valued within the organization. These interactions pave the way for ongoing feedback between employees and managers.
How does the stay interview support retention and engagement?
The stay interview supports retention and engagement by showing employees you care about them and their needs. Not just when issues arise, but all the time. They can be an instinctual tool for managers because you can have one at any time. They can be casual check-ins or more formal meetings if you are concerned an employee may be leaving or is showing signs of burnout. The employer is just there to listen to the employee about their values and priorities. Using these interviews can help companies uncover the insights needed to create a company culture where everyone can thrive.
What makes a stay interview successful? What questions should be asked?
Stay interviews are not just another box to check. Employees need to feel like you care about what they are saying. It is critical to foster trust so they will open up to you, which is the goal of the meeting. By creating a comfortable environment, the stay interview becomes less of an interview and more of a discussion about the employee and their needs. With genuine feedback, companies can actively improve internally while also addressing the employee’s specific issues.
You could ask questions such as, “How’s your bandwidth? What excites you about coming in or logging in to work each day? What do you value about your work? What is the ‘why’ for doing the job you do?.” Overall, you want to gauge how the employee feels in their current role and if they truly feel valued for their work.
How can organizations make the stay interview a long-term solution, as opposed to just another short-term one?
The stay interview is not just a retention strategy, it is a business strategy. Recruiting, hiring, and onboarding new employees takes time and money. Stay interviews enable managers to improve their direct report relationships, keep at-risk talent, and provide broader insights to build lasting culture and connection. If your stay interview is a one-and-done practice with no follow-up, it will be useless.
Companies should make stay interviews an integral part of their greater talent and business strategy — outside of regular employee performance reviews. They should happen more often than once a year, especially when things become stressful. If live meetings are not possible, video technology works well. And to test any hypotheses uncovered, questionnaire tools like surveys or social collaboration groups can gather useful, actionable insights with minimal lift.
What impact do you see the stay interview having on retention in 2022?
Because of this Great Reshuffling – four or five million people changing jobs each month – companies are struggling to keep loyal talent. The stay interview allows employers to fix any issues the employee may be having before it boils up and results in resignation. Managers and their reports need to get comfortable with frequent check-ins that go beyond the status of tasks.
Employees want (and deserve) to be recognized, heard, and supported, hopefully, before they look for a new opportunity elsewhere. By taking time to engage with them regularly, capture their voice and opinions, and offer opportunities and development they want, you will be able to drive meaningful engagement that improves morale, now and in the long term.
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