Exit interviews

Businesses and HR departments typically conduct exit interviews to gather information from departing employees to help the company improve working conditions, retain existing employees and identify problem areas within the business.

One of the most useful aspects of exit interviews is that the departing employee often feels less worried about making a career limiting remark or offending a superior, and therefore is generally willing to provide open and honest feedback about their reasons for leaving and their thoughts about what the company could do to improve. Employers who are able to ascertain why staff leave may be able to retain their best staff in future by making subsequent changes within their business.

Understanding the actual motivations behind resignations and departures from a business is a vital first step in addressing staff turnover issues, yet statistically, figures show the process is regularly overlooked.

So, how should you conduct a face to face exit interview?

• Firstly, make sure that departing staff member understands the purpose of the interview and that you plan to ask questions to ultimately make improvements within your workplace.

• Give the employee advance notice of the meeting so that they have time to prepare, and schedule the meeting well before the employee's last day.

• Ensure the employee is treated with respect and dignity throughout the interview process and reassure them that issues raised will be used effectively for the benefit of the employee's colleagues.

• Provide a setting that will allow the employee to feel relaxed and comfortable, they should feel completely free to express their opinion without any fear of recrimination or bridge burning.

• Reassure the employee of the confidential nature of the exit interview process. Make it clear that their feedback, however positive or negative, is valuable and highly appreciated.

Employers can use the exit interview process to determine:

•The two main reasons why the employee is leaving.
•Steps the organisation could have taken, in hindsight, to keep the employee.
•Their opinion on workplace morale.
•What the employee liked about the company.
•What the employee would change about the company if they could.
•Information on how to maintain a good relationship with a departing employee.

Whilst most businesses and organisations still use the tried and tested approach of a face-to-face meeting between the Manager/HR person and the departing employee, these days there are other options that may better suit your business. Many managers are uncomfortable and untrained in conducting exit interviews, and other methods may provide your business with valuable feedback. You might consider an online survey, phone interview or a paper questionnaire.

For information on how your business can minimize talent drain, and establish an effective employee exit process, contact Annette at End2End Business Solutions on (02) 8977 4002.

1 July 2013 - Legal changes for Small Business

It's the new financial year and there are a raft of legal changes taking effect today for the business community to adhere to.  

In summary:

Minimum wage increase

Effective July 1, Australia's 1.5 million minimum wage workers are set to receive an additional pay raise of $15.80 per week, a 2.6 % increase over their existing wages.

The effect of this increase will see the National Minimum Wage increase from 1 July 2013 to $622.20 per week, or $16.37 per hour. The new rates will need to be paid from the first full pay period on or following July 1, 2013.

Increase in High Income Threshold/Unfair Dismissal

The high income threshold increases from 1 July 2013,

• the high income threshold increases to $129,300
• the compensation limit under unfair dismissal increases to $64,650.

The high income threshold is indexed annually on 1 July.

The high income threshold affects how modern awards apply to employees. It also affects employees’ ability to access unfair dismissal. Higher income employees are generally not allowed to apply for unfair dismissal since the terms of employment can be different above this threshold. As well as affecting unfair dismissal rights, the threshold impacts the maximum amount payable for an unfair dismissal case. This amount is capped at either half of the high income threshold or six months of the dismissed employee's wage.

Superannuation

From July 1, employers will contribute 9.25% to superannuation for each of their eligible employees, an increase of 0.25% from the current rate of 9%.
Also from July 1, businesses will be required to pay elderly people aged 70 and above superannuation entitlements, as the existing upper age limit for employee super guarantee eligibility will be removed.

If you were making super payments at the minimum 9% rate, you need to adjust payments to the new rate from 1 July 2013.

Superannuation is paid on top of the minimum entitlements in the award or agreement that applies.

Loss carry-back measures

Small businesses are now able to carry back their losses to offset past profits and receive a tax refund. Businesses can carry back up to $1 million in deductions against profits made in the previous year to receive a refund of up to $300,000 each year from tax previously paid – representing the company tax rate of 30 cents in the dollar.