With the job market in New Zealand becoming even more competitive and skilled talent becoming increasingly difficult to find, retaining top talent has become more critical than ever. With turnover rates climbing and employee expectations seeing a shift in recent years, businesses are constantly searching for ways to boost engagement, satisfaction, and loyalty. One highly effective yet often underutilised tool is the “stay interview.”
Stay interviews provide an opportunity to understand what motivates your employees, identify potential areas of dissatisfaction, and proactively address issues before they lead to resignations. Unlike exit interviews—which occur when it’s too late—stay interviews focus on retention by fostering open communication and building stronger relationships between employers and their workforce.
So, what exactly are stay interviews? Why are they effective? And how can you carry them out? In this blog, we will discuss each of these questions alongside some common pitfalls to avoid!
A stay interview is a structured, one-on-one conversation between a manager and an employee that aims to uncover what keeps the employee engaged and what might prompt them to leave. It’s an opportunity to:
Turnover is expensive. Research suggests that replacing an employee can cost anywhere from 50% to 200% of their annual salary, depending on their role. Stay interviews help HR teams and managers detect and address potential issues early, reducing the risk of losing valuable employees.
When employees feel heard and valued, they’re more likely to stay engaged. Stay interviews demonstrate a company’s commitment to its people, fostering a sense of belonging and loyalty.
The act of sitting down and genuinely listening to employees helps managers build trust and rapport. These relationships are key to creating a supportive work environment where employees feel comfortable sharing their thoughts.
At its heart, stay interviews provide real-time feedback that can inform HR strategies, from improving workplace culture to refining benefits and development programs. Unlike annual surveys, these conversations offer specific and immediate insights that can drive tangible changes.
Now that we have discussed what stay interviews are and why they’re so important, let’s explore how to conduct them effectively.
To maximise the benefits of stay interviews, it’s crucial to approach them thoughtfully, and to plan how they are going to run. Here are some best practices:
Stay interviews shouldn’t be a one-time event, employees’ needs and opinions on the company will naturally change over time so it’s important to stay up to date on these changes. Incorporate stay interviews into your annual employee engagement strategy. Consider scheduling them during quieter periods to ensure managers and employees can devote their full attention.
The success of a stay interview hinges on asking the right questions. Here are some examples:
These open-ended questions encourage employees to share honest feedback and uncover insights that might not surface otherwise.
Remember to follow-up on their answers to uncover more insights into their thoughts on working at your company.
Employees need to feel comfortable speaking openly. Emphasise that the conversation is confidential and focused on their well-being. Avoid being defensive or dismissive, even if the feedback is tough to hear.
Make sure to create a relaxed and informal environment. If employees feel comfortable, they are much more likely to share their honest opinions.
The most critical step in the process is taking action based on what you learn. Address concerns promptly, and keep employees informed about any changes or initiatives resulting from their feedback. This demonstrates that their input is valued and leads to tangible improvements.
Stay interviews should not be a “set it and forget it” process. Regularly check in with employees to track progress and ensure any changes have had a positive impact. Consistency shows your commitment to their satisfaction and growth.
While stay interviews can be transformative, they must be executed correctly. Avoid these pitfalls:
The New Zealand job market in 2025 presents unique challenges, from a tight talent pool to evolving employee expectations. Stay interviews align perfectly with Kiwi values of open communication and collaboration. They’re also an excellent tool for navigating the rise of flexible work arrangements and fostering stronger employer-employee relationships.
In an era where talent retention is more important than ever, stay interviews offer a simple yet powerful solution. They provide a platform for open dialogue, enabling businesses to address issues proactively, enhance employee satisfaction, and build a more resilient workforce.
At ParadigmHR, we specialise in helping businesses implement effective retention strategies. Our Internal Talent Mapping Program identifies and unlocks the potential within your existing workforce, aligning skills with business goals and supporting succession planning. From training managers to facilitating these conversations, we’re here to support you in creating a workplace where employees thrive.
Ready to get started? Contact us today to explore how stay interviews can transform your employee retention efforts.
With the job market in New Zealand becoming even more competitive and skilled talent becoming increasingly difficult to find, retaining top talent has become more critical than ever. With turnover rates climbing and employee expectations seeing a shift in recent years, businesses are constantly searching for ways to boost engagement, satisfaction, and loyalty. One highly effective yet often underutilised tool is the “stay interview.”
Stay interviews provide an opportunity to understand what motivates your employees, identify potential areas of dissatisfaction, and proactively address issues before they lead to resignations. Unlike exit interviews—which occur when it’s too late—stay interviews focus on retention by fostering open communication and building stronger relationships between employers and their workforce.
So, what exactly are stay interviews? Why are they effective? And how can you carry them out? In this blog, we will discuss each of these questions alongside some common pitfalls to avoid!
A stay interview is a structured, one-on-one conversation between a manager and an employee that aims to uncover what keeps the employee engaged and what might prompt them to leave. It’s an opportunity to:
Turnover is expensive. Research suggests that replacing an employee can cost anywhere from 50% to 200% of their annual salary, depending on their role. Stay interviews help HR teams and managers detect and address potential issues early, reducing the risk of losing valuable employees.
When employees feel heard and valued, they’re more likely to stay engaged. Stay interviews demonstrate a company’s commitment to its people, fostering a sense of belonging and loyalty.
The act of sitting down and genuinely listening to employees helps managers build trust and rapport. These relationships are key to creating a supportive work environment where employees feel comfortable sharing their thoughts.
At its heart, stay interviews provide real-time feedback that can inform HR strategies, from improving workplace culture to refining benefits and development programs. Unlike annual surveys, these conversations offer specific and immediate insights that can drive tangible changes.
Now that we have discussed what stay interviews are and why they’re so important, let’s explore how to conduct them effectively.
To maximise the benefits of stay interviews, it’s crucial to approach them thoughtfully, and to plan how they are going to run. Here are some best practices:
Stay interviews shouldn’t be a one-time event, employees’ needs and opinions on the company will naturally change over time so it’s important to stay up to date on these changes. Incorporate stay interviews into your annual employee engagement strategy. Consider scheduling them during quieter periods to ensure managers and employees can devote their full attention.
The success of a stay interview hinges on asking the right questions. Here are some examples:
These open-ended questions encourage employees to share honest feedback and uncover insights that might not surface otherwise.
Remember to follow-up on their answers to uncover more insights into their thoughts on working at your company.
Employees need to feel comfortable speaking openly. Emphasise that the conversation is confidential and focused on their well-being. Avoid being defensive or dismissive, even if the feedback is tough to hear.
Make sure to create a relaxed and informal environment. If employees feel comfortable, they are much more likely to share their honest opinions.
The most critical step in the process is taking action based on what you learn. Address concerns promptly, and keep employees informed about any changes or initiatives resulting from their feedback. This demonstrates that their input is valued and leads to tangible improvements.
Stay interviews should not be a “set it and forget it” process. Regularly check in with employees to track progress and ensure any changes have had a positive impact. Consistency shows your commitment to their satisfaction and growth.
While stay interviews can be transformative, they must be executed correctly. Avoid these pitfalls:
The New Zealand job market in 2025 presents unique challenges, from a tight talent pool to evolving employee expectations. Stay interviews align perfectly with Kiwi values of open communication and collaboration. They’re also an excellent tool for navigating the rise of flexible work arrangements and fostering stronger employer-employee relationships.
In an era where talent retention is more important than ever, stay interviews offer a simple yet powerful solution. They provide a platform for open dialogue, enabling businesses to address issues proactively, enhance employee satisfaction, and build a more resilient workforce.
At ParadigmHR, we specialise in helping businesses implement effective retention strategies. Our Internal Talent Mapping Program identifies and unlocks the potential within your existing workforce, aligning skills with business goals and supporting succession planning. From training managers to facilitating these conversations, we’re here to support you in creating a workplace where employees thrive.
Ready to get started? Contact us today to explore how stay interviews can transform your employee retention efforts.