Can stay interviews be the key to retaining staff in New Work environments?

May 20, 2024

Quiet quitting or climate quitting are only a few of the emerging trends illustrating that a growing number of employees are no longer satisfied with their jobs. This dissatisfaction can lead to employees mentally resigning from their positions and is viewed as an indicator of the changes taking place in our working world. New technologies, an increasing emphasis on flexibility and work-life balance, as well as the rise of New Work methodologies are making the traditional perception of work and the demands on oneself at the workplace obsolete. Moreover, this trend has been strengthening – and since the pandemic it’s been turning the working world upside down. Many see it as an opportunity to question their old working routines. At the same time, Gen Z has entered the job market. This generation is known for bringing its own expectations to the table when it comes to work, preferring careers with purpose and flexibility over a lifetime job while seeking a beneficial corporate culture. The rising popularity of New Work methods has fundamentally changed the employer-employee relationship. Instead of viewing employees as resources who are responsible for performing certain tasks, employers are now considering them more as equal partners. Employees are striving for more than just a regular paycheck. They’re looking for meaningfulness, flexibility and development opportunities in their work – and for New Work environments that take their individual skills and needs into account.

Employers within contemporary New Work settings are not only faced with the challenge of acquiring employees – equally important is how to retain them for the long term.

New Work strategy: stay interview instead of exit interview?

Factors such as a lack of skilled workers, demographic changes and the transformations New Work has introduced to the working world means that companies are finding it increasingly difficult to recruit good employees and retain them, as the following figure clearly confirms: the long-term study “Gallup Engagement Index Germany” concluded that only 14% of the employees in Germany felt a strong sense of commitment to their employers. Employee turnover has become the norm in many companies. How can employers manage to hold onto their employees?

One option is the stay interview, sometimes known as a retention interview. These are talks between employers and their staff aiming to increase employee satisfaction and engagement with the company. The interviews present the opportunity to address questions and concerns and discuss development opportunities. They create a setting in which employers are able to better understand the needs and desires of their employees and to act on them accordingly – before an employee decides to quit. A stay interview is not intended to replace regular employee reviews and feedback meetings. It can, however, be viewed as an additional instrument for employer-employee communication.

Why should companies be conducting stay interviews?

There are numerous reasons why companies should conduct stay interviews. One is the “war for talent” which makes it challenging to find new workers with desirable skills. Another is the possible negative effect that employee turnover can have on a business. Plus, onboarding new employees costs money and takes time. If a company’s revolving door is swinging too fast, it may cause remaining employees to feel insecure and perceive the company as less attractive. Retention interviews are a good way to get timely feedback (at early stages) from workers, so that the employer has the possibility (before quiet quitting begins) to address any dissatisfaction or problems an employee is experiencing. Employees are also reassured that the company is taking an interest in their long term development, and ultimately, it is a sign of appreciation that can optimally strengthen employee loyalty.

4 essential steps of a stay interview

While the individual dynamics of stay interviews may differ, there are essentially four steps that each interview should contain:

Preparation: both content-related issues and organization call for good preparation. Contentwise, it’s important that the employer is familiar with the worker’s employee profile and their tasks within the company. A comfortable, pleasant space should be organized for the interview with enough time planned in for the meeting.
Conversation starters: Starting off on a positive note sets the tone for the interview. At this point, it’s useful for employers to pose open-ended and honest questions to encourage their employees to freely express their thoughts and concerns.
Active listening: a stay interview focuses on understanding issues from the employee’s perspective. Actively listening enables an employer to truly understand the interests and concerns of their employees. By asking relevant follow-up questions, employers demonstrate a sincere interest in what’s being discussed and are able to gain a thorough understanding of the matters at hand.
Conclusion and follow up: not all stay interviews result in an immediate outcome. Sometimes both parties first need time to process what has been discussed in the interview in order to reach agreements or initiate appropriate measures. This is an opportune time to seriously consider how to continue working together in the future.