The Power of the ‘Stay’ Interview When it Comes to Retaining Top Talent

If people truly are your greatest asset, why are organisation’s letting talented people slip through their fingers?

In the war for talent in this post pandemic period known as the ‘Great Resignation’, organisations need to think differently, not only about attracting new talent, but retaining the talent they have.

While Australian statistics tell us that we aren’t quite at the same level of resignations that our friends in the US face, the fact is that in the first quarter of 2022, job vacancies numbered 423,500, an increase of 6.7% from the previous quarter and 86% higher than in February 2020, just prior to the pandemic.

Quite simply, it is a job seekers market out there and people are taking advantage. (And why wouldn’t they?)

Salaries for some industries, such as IT professionals are on the rise. A skills-shortage brought about by factors such as closed borders, and pivots driving businesses online, mean that many can shop around for an employer willing to pay more for what they bring to the corporate table.

Losing ‘good people’ with tenure means a loss of knowledge, intellectual property and possibly the morale of those ‘left behind’. As we all know, recruitment of the ‘right fit’ or ‘best people’ rarely happens overnight and vacant roles lead to downtime and pressure on other team members as they attempt to fill the gaps.

Clearly, fostering strong relationships between organisations and their employees has never been more important to ensure that you retain the talent you need to thrive in the current climate.

What is it they say — a bird in the hand is worth two in the bush?

Instead of conducting ‘exit interviews’ as people walk from your business, why not embrace and invest in the power of the ‘stay interview’ instead?

David Reddin of Reddin Group firmly believes that this approach must be considered by Australian businesses wanting to remain competitive in the market.

“If you look at the current Australian business landscape, we are currently at 4% unemployment and could even hit 3% in the not-too-distant future. There are more jobs and fewer candidates. Employees turning their backs on employers is a real issue. Organisations cannot afford to be complacent in this market. Investing in your people through activities such as ‘stay interviews’ may provide you with the insights you need to retain and ultimately grow your skilled workforce,” David says.

Exit interviews, while valuable, provide historical information. Once that employee walks out the door, all you can do is hope to make change for those who come afterwards. David explains that in the current climate, organisations must be investing in the employees they have as well as analysing the reason past employees have exited.

“Stay interviews are about showing employees that you are invested in keeping them with your organisation, that you want to hear their views and that you are willing to take action and facilitate change when issues are raised”.

“True stay Interviews are one-one-one interviews and conversations where issues can be raised in confidence and the conversation can go in the direction driven by the employee. It should be a reflection of reality, not just a token exercise. Employees must feel they can raise sensitive issues where appropriate and feel heard.”

“While many larger organisations tend to run online climate/morale/360 degree surveys, the power of a one-on-one interview style conversation allows you to identify if there are issues, and even identify hidden talent and do something about them before it’s too late. When run over a period of time, stay interviews can provide organisations with real insights. And, of course, people tend to hide less in a one-on-one meeting. The chances of the real truth coming out are enhanced many times over,” David says.

David believes the type of insights stay interviews can provide include retention strategies, clues to where behaviours need to change, identifying “hot spots” within the organisation — perhaps tied to a particular function, maybe a particular manager, frustrating processes. In other words, they can help identify all those factors that are currently blocking performance or efficiency, often identified too late as a star performer leaves and tells you about these things on the way out!

“Stay interviews are a fantastic way of showing you where you need to focus your development investment and, above all else, it is a tangible way of showing your people that you value their contribution to the business,” he says.

David further believes that confidentiality, consistency, and continuity are key to ensuring your organisation gets the most out of a stay interview.

David’s six tips for conducting successful stay interviews within your organisation:

1. Create an environment where voicing ideas and frustrations are not only accepted but encouraged and done in the spirit of continuous improvement.
2. Don’t let a stay interview be a one-off exercise: Build it into your broader retention and development plans. Show your team that there is genuine and ongoing interest in developing the culture but also developing the individual.
3. Listen carefully and take notes so you miss nothing. Seek context and elaboration. Show you’re interested and focused.
4. Understand the factors at play that might cause a team member to leave. Think questions about “what do you like about working here”, “what is less enjoyable”, “what might cause you to leave?”, “what would influence you to stay?,” “how do you want to see your career develop and where do we need to invest to help you get there?”
5. Take action. Don’t ignore problems that are staring you in the face simply because they are “too big or too hard or too expensive to deal with”. If people are to feel truly valued, they must see their input is creating change.
6. Don’t over-promise and under-deliver! Team members have great BS meters and they’ll see right through you if you’re just going through the motions.

“In our current climate, more than ever, I honestly don’t think businesses can afford not to invest in their people. Stay interviews are the perfect place to begin,” David says.

If you would like to speak with David or a member of Reddin Group about building stay interviews into your organisation’s HR plans, contact Lyn Cole, Lyn@reddingroup.com.au