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Evaluations vs Stay Interviews

Here is the age-old question that business management experts have been pondering since the Industrial Revolution:  If a company puts profits first no matter what it does to employees, can it thrive if there is constant turnover?  On the other hand, if a company puts people first, will it be as profitable?  For a century, these questions were positioned like a tug of war of opposing forces.  Labor vs. Management. 

Today, smart business owners and managers know that employees need to feel valued (and be valued) in order to keep turnover low.  People are the most important resource of any business.  But that same leadership also knows that they must keep productivity and efficiency high in order to be profitable.  The struggle then is to figure out what to prioritize:  people or profits? 

As in most things in life, the key is balance.  Employers must weigh the needs of their staff against the needs of the business to find a happy medium.  By establishing a culture of caring where people matter but where everyone is also working together for the good of the company, balance can be achieved.  That’s where HR programs, fringe benefits and employee workplace strategies come in.  There are new approaches businesses are taking to get the most from their employees and ensure those employees are thriving and growing.  And it is not just for the top brass or for the company’s most valuable team members.  This is for everyone from an entry-level clerk to the most senior staff.

Providing regular feedback so employees know how they are doing and how they can improve is a key part of creating a positive, caring workplace culture.  But so is finding out what those employees want and need in the context of their work.  In that search for that balance, there are different tools an employer or manager can use.  One is the standard Employee Evaluation.  Another more recent innovation is the Stay Interview.  Here is what they are and how they are different.

Employe Review vs. Stay Interview

An Employee Evaluation or Review and a Stay Interview are both important tools for managers to use to understand their employees and their performance. However, they have different purposes and goals.

A traditional Employee Evaluation is a formal process used to assess an employee’s job performance. It typically includes a review of the employee’s job duties, responsibilities, and goals, as well as their performance against those expectations. The goal of an employee evaluation is to provide feedback to the employee on their performance, identify areas for improvement, and set goals for the future.  This is important so the employee is able to improve, grow and do work that is meaningful to them.

A Stay Interview, on the other hand, is a less formal conversation between a manager and an employee that is designed to understand why the employee is staying with the company and what they need to be happy and engaged in their work. The goal of a stay interview is to identify any potential problems that could lead to the employee leaving the company, and to take steps to address those problems.

Feature	Employee Evaluation	Stay Interview
Purpose	Assess job performance	Understand employee engagement and retention
Format	Formal, structured	Informal, conversational
Frequency	Annually or semi-annually	As needed
Topics	Job duties, responsibilities, goals, performance against expectations	Employee satisfaction, career goals, development opportunities, work environment
Outcome	Feedback, goals, performance rating	Action plan to address employee concerns

Conducting A Stay Interview

Here are some questions that a manager can ask in a stay interview:

• What do you like most about working here? This helps a manager understand what the employee is looking for in a job and what they are getting out of their current role. 
• What could be improved about your job? This helps bring out any potential problems that could lead to the employee leaving the company.  This could be prefaced with a statement like “We don’t have to be sick to get better.  How can we make your job better?”
• What are your career goals?  This helps a manager understand what the employee wants to achieve in their career and how the company can help them achieve those goals.  Perhaps the employee is working as an accounting clerk, but really wants to move into technology and is getting a degree in Programming.  That manager can see if there are opportunities for that employee to do an internship with the IT department or tasks they can do to improve the software being used by the accounting department.  
• What development opportunities would you like? This question seeks to identify any training or development opportunities that the employee would be interested in.  For example, a company’s web designer might want to take a course in Search Engine Optimization or UI/UX. 
• How do you feel about the company culture?  Or Do you feel you fit in?  The goal with this question is to help the manager understand if the employee is happy with the company culture and if they feel like they belong.
• What could the company do to make you more likely to stay? This question will help the manager identify any specific changes that could be made to improve employee satisfaction and retention.  It also says: “we value you and want you to stay.”

In addition to these specific questions, the manager should also take the time to listen to that employee’s overall thoughts and feelings about their job and the company. The goal of a stay interview is to have a conversation, not just to ask questions. The manager should be open to hearing the employee’s concerns and ideas, and they should be willing to take action to address any problems that are identified.

Some additional tips for conducting a successful Stay Interview includes:

1. Choose the right time and place. The Stay Interview should be conducted in a private setting where the employee feels comfortable speaking openly.  Other employees should not be able to overhear the conversation.  Staff should not be able to casually interrupt.
2. Listen actively.  Turn off your cell phone and put it away.  Close your tablet or laptop.  Pay attention to what the employee is saying and ask clarifying questions. This ensures the employee’s specific concerns and needs are heard and understood.
3. Build a rapport. Start the interview by building rapport with the employee and getting to know them on a personal level. This will help the employee feel more comfortable and open up to you.
4. Be responsive. If the employee identifies any problems, be responsive and let them know that you are taking their concerns seriously.
5. Follow up. After the interview, send the employee a thank-you note and let them know what actions you will be taking to address their concerns.

Can a Stay Interview Backfire?

Even with the best intentions, a Stay Interview can backfire and cause an employee who was on the fence about to leave to actually pull the trigger.  Here are some potential problems associated with stay interviews.

• The employee may feel like they are being interrogated. If the stay interview is not conducted in a positive and supportive way, the employee may feel like they are being interrogated or put on the spot. This can make them feel uncomfortable and less likely to be open and honest.
• The employee may not be willing to share their true thoughts and feelings. If the employee is not comfortable with the manager or does not trust them, they may not be willing to share their true thoughts and feelings about their job and the company. This can make it difficult for the manager to get the information needed to improve employee satisfaction and retention.
• That employee might feel like they are being pressured to stay. If the manager is too focused on getting the employee to commit to staying with the company, the employee may feel like they are being pressured to stay. This can make them feel resentful and less likely to be honest.
• The Stay Interview may not be effective. If not conducted properly, it may not be effective in identifying any potential problems that could lead to the employee leaving the company. A manager can’t fix what he doesn’t know is broken.  So communication is key for the Stay Interview to work.
• If the manager does nothing to help the employee make the job better, more meaningful or more aligned with his/her own goals, then that employee will see the Stay Interview as just a lot of pointless talk.  That would likely increase the level of frustration and serve as the final straw to go elsewhere when an opportunity arises.

It is important to be aware of these potential problems when conducting Stay Interviews. By taking steps to mitigate these problems, Stay Interviews can be a more productive and beneficial experience for both the employee and the company.  Here are some tips for mitigating the problems associated with Stay Interviews:

1. Make sure both parties are in a good frame of mind for the Stay Interview.  It needs to happen in a positive and supportive way. It’s important that the employee knows that you are there to listen to their concerns and help them succeed.
2. Be open and honest with the employee. Let them know that you are conducting the stay interview because you want to understand how you can make their job more satisfying, if that is at all possible.
3. Ask open-ended questions. The goal is to encourage the employee to share their thoughts and feelings in their own words.  So the more relaxed and casual the conversation, the better.
4. Pay close attention not only to what the employee is saying but to their body language and ask clarifying questions.  Sometimes employees will feel afraid of being too direct.  Let them know it is okay to be frank.
5. Be responsive. If the employee identifies any problems, be responsive and let them know that you are taking their concerns seriously.
6. Follow up. After the interview, send the employee a thank-you note and let them know what actions you will be taking to address their concerns.  And then take those actions and see if that is having the desired effect.

For companies that really want to curtail their turnover and solidify their team, Stay Interviews is another tool to showcase a culture of caring.  And, if this sounds like a big waste of time, try it as an experiment.  Implement the program company-wide for six months and see if the turnover rate at the company decreases.  Finding new ways to care for the people that help the business succeed is always a good idea.

Quote of the Week

“Stay interviews are a great way to get feedback from employees and make sure that you are meeting their needs.” Patty McCord, former CTO, Netflix

© 2023, Keren Peters-Atkinson. All rights reserved.