Exit interviews are structured as an important asset for managements to ascertain the reasons for employees leaving the organization. Such interviews need a perfect design and effective execution. It is the responsibility of the companies to utilize these interviews for employee retention and thus strive for organizational growth.

Once an employee has resolved to quit, there may not be a great deal that can be done to check the loss of that employee. Irrespective of the labor market, progressive organizations are always anxious about monitoring turnover, particularly when competent and performing employees leave. Excessive turnover can affect the effectiveness and morale of the employees who remain with the organization and can also have an overwhelming effect on the financial position of the organization. Exit interviews can be a valuable instrument for managements to ascertain as to why employees leave. They also help in putting off a potential exodus. Several companies are already making use of exit interviews to this end.

The exit interview is an interview of a departing employee. This is typically held for employees who voluntarily quit rather than those who are handed over the pink slip. HR departments conduct exit interviews to gather perceptions on organizational aspects like working conditions, pay packages, interpersonal relations, policies and related issues. The idea is to obtain information from the departing employees on the various issues and cross check for authenticity. As the conventional belief goes, while it is the work, company and pay packets, which draw employees to join a certain organization, it is generally the immediate supervisor or interpersonals, which force employees to leave organizations. Numerous surveys have confirmed that factors intrinsic to the job combined with interpersonal issues and supervision are the major culprits for employee migration. Nevertheless, exit from any organization may have "organization specific" reasons.