Future Business Leaders of America (FBLA) Business Management Practice Test

What is conducted to determine the reasons an employee is leaving?

1. Performance review

2. Exit interview

3. Structured interview

4. Promotion assessment

The correct answer is: Exit interview

An exit interview is a formal discussion conducted with an employee who is leaving the company. The primary purpose of this interview is to gather insights about the employee's experience within the organization, including their reasons for departing. This can help employers understand various factors that may contribute to employee turnover, such as workplace culture, management practices, job satisfaction, and opportunities for career advancement. By obtaining this feedback, companies can identify potential issues that may need to be addressed to improve retention rates and ultimately create a more positive work environment. Understanding why employees leave is crucial for making strategic decisions about hiring, training, and organizational development. In contrast, a performance review evaluates an employee's job performance and contributions to the organization, while a structured interview is typically used in the hiring process to assess candidates based on standardized questions. A promotion assessment focuses specifically on evaluating an employee's readiness for a higher position within the company. These processes do not serve the purpose of uncovering reasons for employee departures.