What are Employee Stay Interviews? [+ How to Conduct Them]

Employee turnover costs businesses 30% to 40% of an employee’s first-year salary, making it critical to adopt strategies that keep employees engaged and satisfied.

A stay interview is a highly effective yet often underutilized tool for improving retention. This proactive approach allows organizations to identify and resolve employee concerns before they escalate into resignations.

Let’s examine how stay interviews work, why they matter and how to implement them effectively.

What Are Stay Interviews and Why Do They Matter?

A stay interview is an informal, one-on-one conversation between a manager and an employee. It zeros in on understanding what motivates the employee to remain with the organization and what might tempt them to leave. Unlike performance reviews, which evaluate an employee’s work, stay interviews are separate conversations centered on the employee’s experience, satisfaction and aspirations.

The primary purpose of a stay interview is to prevent turnover by addressing potential frustrations or unmet needs before they lead to disengagement or resignation. Rather than waiting for an exit interview — when it’s too late to retain the employee — stay interviews provide a proactive opportunity to make meaningful changes.

For example, take an employee who values professional development but feels limited in growth opportunities. A stay interview could uncover this concern early, allowing the organization to offer additional training or mentorship programs to keep the employee engaged.

By responding to concerns like these in real time, businesses can foster loyalty and reduce costly turnover.

Benefits of Stay Interviews

Stay interviews offer significant advantages for both employees and employers:

• For Employees: They demonstrate that their opinions matter and illustrate the organization’s commitment to their satisfaction and growth while providing avenues to improve unsatisfactory experiences.
• For Employers: They provide actionable insights into employees’ motivations and challenges, enabling organizations to manage issues proactively before they result in turnover.

For instance, if several employees cite flexible work arrangements as a key motivator during stay interviews, but your organization is planning to mandate a return to office, reconsidering such policies could improve retention. Similarly, if employees consistently highlight positive relationships with their teammates as a reason for staying, reinforce this strength by introducing additional team-building opportunities.

These benefits go beyond individual conversations, creating a workplace culture centered on trust and open communication. When employees feel heard and valued, they’re far more likely to remain engaged and committed over the long term.

Key Components of Effective Stay Interviews

To ensure your stay interviews are successful, center on the following core components:

• Timing and frequency: Conduct stay interviews every six months, with monthly check-ins for new hires during their first three months. This consistent strategy shows a commitment to employee satisfaction and identifies potential issues early, preventing escalation.
• Conducted by direct managers: Stay interviews should be led by the employee’s direct manager rather than HR. Managers typically have closer relationships with their team members and can act on feedback more effectively. Building trust is essential for encouraging open communication.
• Informal conversation format: Design stay interviews to feel like natural conversations rather than formal procedures. Avoid rigid forms or checklists and create a comfortable environment that encourages candid dialogue. This plan reduces anxiety and promotes meaningful discussions.
• Concentrate on employee experience: Center the conversation on understanding the employee’s experiences, motivations and concerns. This focus cultivates a supportive atmosphere where employees feel valued. Take an example of an employee who feels overworked but enjoys teamwork. Explore ways to balance workloads while maintaining collaboration.

By ensuring your stay interviews are structured effectively, you can foster a culture of open communication, resolve employee concerns, strengthen team dynamics and enhance overall engagement. This framework for stay interviews help retain top talent and cultivate a positive workplace environment.

Essential Questions for Stay Interviews

While specific questions may vary based on organizational needs, here are five core questions to include in your stay interviews:

1. What do you look forward to when coming to work each day?

Use this information to tailor assignments or generate opportunities that align with the employee’s interests and strengths. If an employee struggles to answer, it may indicate low engagement or job satisfaction.

2. What are you learning here and what else do you want to learn?

Pay attention to any gaps between what they’re learning and what they want to learn. Consider crafting personalized learning plans or identifying stretch assignments that meet these goals.

3. Why do you stay with our company?

Listen for mentions of company culture, work environment, benefits or specific aspects of their role. Reinforce these positive elements wherever possible.

4. Have you thought about leaving in the last six months? If so, why?

While sensitive, this question can reveal potential issues if trust exists between the manager and employee. If trust is lacking, rephrase it as, “What would prompt you to consider other opportunities?” The goal is to identify risks and devise actionable solutions based on concerns raised.

5. What can I do to make your job better?

This open-ended question invites actionable input from employees while demonstrating that their input is valued. Implement feasible suggestions quickly where possible, and for more complex issues, collaborate with the employee in developing solutions.

Remember that effective stay interviews involve not only asking these questions but actively listening to responses, expressing empathy and taking meaningful actions based on responses.

Implementing Effective Stay Interviews

To make sure your stay interviews are effective and yield valuable insights, you need to implement them thoughtfully. The following strategies can maximize the impact of stay interviews and facilitate a culture of open communication:

• Train managers: Equip managers with the skills necessary to conduct productive stay interviews. Emphasize active listening techniques, such as maintaining eye contact and using non-verbal cues to show engagement. Encourage managers to ask open-ended questions like, “What aspects of your job do you find most fulfilling?” Also, make sure they know how to establish a non-judgmental atmosphere and respond neutrally to critical feedback.
• Initiate a culture of open communication: Integrate stay interviews into a broader culture that values regular dialogue. Promote transparency in sharing the reasoning behind major changes in meetings or newsletters. Recognize employees who give constructive suggestions through a program that rewards these opinions. Train managers to have informal check-ins with team members regularly to encourage open conversations.
• Follow up on feedback: The impact of stay interviews depend on the actions taken afterward. Formulate action plans for managers to document key takeaways and outline specific steps to resolve concerns. Communicate changes made based on evaluations to affirm that employees’ input matters. Regularly review progress by tracking the implementation of improvements suggested during stay interviews.
• Measure effectiveness: Track key metrics such as turnover rates and employee engagement scores to evaluate the impact of your stay interview process. Gather input from managers on the usefulness of the stay interview process and analyze patterns for common themes across interviews to identify systemic issues.
• Tailor the approach: Recognize the stay interviews are not one size fit all. Small businesses might benefit from more frequent, informal check-ins that can incorporate stay interview elements effectively. Larger organizations may require a more structured process for consistency across departments. For remote teams, adapt the process for virtual conversations using video calls and secure digital tools for response documentation.
• Leverage technology: While personal connection is crucial, technology can support the stay interview process. Use HR software to schedule and track interviews, implement tools for analyzing trends across the organization and utilize anonymous feedback platforms to supplement stay interviews for sensitive topics.

By using these strategies, you can create a robust stay interview process that retains top talent while also fostering engagement and productivity. To ensure success, view the stay interview process as a continuous effort for improvement, rather than a one-time event.

Improve Employee Retention with James Moore HR Solutions

Stay interviews are a powerful yet simple tool for boosting employee retention and engagement. They enable you to proactively address concerns before they escalate into resignations. As a result, you can reduce turnover costs while nurturing a more satisfied workforce. The key lies in genuine listening, thoughtful analysis of trends and meaningful action based on what you learn.

If you need support improving your employee engagement and retention, James Moore HR Solutions can assist. Our team can guide your stay interview process, analyze your learnings to construct and implement changes.

Don’t wait for employee issues to escalate — contact us today to get started.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.