Why exit interviews keep mentioning “no growth”

When an employee leaves a company, whether it’s because they’re being laid off, there’s no room for progression, or they’ve decided to go of their own accord, it’s vital for the business to carry out an exit interview. That way, they can find out the reasons behind the move, as well as indications of how the company can work better for those employees who remain.

What is being termed as the Great Dissatisfaction is still prevalent. A survey of nearly 11,000 UK professionals and employers, carried out by Hays, found that, in 2024, 48% of UK workers reported a lack of career progression opportunities, which is a rise of 16% from the year before.

The “no growth” aspect should be seen as a warning sign for employers, especially during this time of economic uncertainty, when job stagnation is rife. According to a report by Michael Page, 51% of those surveyed cited feeling stuck in their current positions. This broke down into 39% highlighting limited opportunities for growth or a pay increase within their place of work, but only 11% actively seeking new opportunities.

Why? This goes back to the economic uncertainty felt across the UK, with workers deciding not to risk it by jumping ship, or feeling it’s more difficult to leave the longer they’re in a job, due to the security and familiarity.

Along with the Hays survey that additionally states that, “only 43% of workers feel positive about their career outlook this year, down from 53% last year,” these factors underline why employees state “no growth” when leaving their current roles during the offboarding period.

Now let’s look at a more detailed description of what an exit interview is and exactly what it entails. A simple definition of an exit interview is a structured conversation with the employee who is leaving, whether this is due to their role being terminated, retiring, resigning, or any other reason.

The objectives for carrying out an exit interview are to:

• Fully understand why the member of staff is leaving
• Gain insights into their overall experience, covering topics such as the work culture, leadership, and work environment
• Identify any trends that might point towards wider organisational issues, such as lack of growth, few progression opportunities, or poor management
• Support any improvements that can be made in the areas of staff retention, onboarding, staff engagement, tackling mental health issues, and career development.

The typical formats of an exit interview can be:

• Face-to-face or virtual interviews, normally carried out by the HR department
• Anonymous online surveys
• Questionnaires filled out during the offboarding process
• A debrief conducted alongside the final HR process, during handovers and information on severance packages

It is also worth noting that employees are not legally obliged to take part in an exit interview.

The data collated from exit interviews can help futureproof employee growth if used in the right way.

This can include:

• Spotting trends by gathering relevant data over a long period of time that can help pinpoint any systemic issues within the organisation
• Benchmarking by comparing the reasons given for leaving the business across each department
• Crafting a more comprehensive retention strategy, so more employees will stay, which is a more cost effective way of running a business
• Reviewing organisational policies that influence changes in training budgets, management development, and internal promotions

• Failing to act on any themes that crop up time and time again, as this will erode any trust across the company
• Creating a blame culture where feedback is treated defensively instead of constructively
• Using inconsistent questions or formats, making it difficult to come to any reliable conclusions
• Not recognising fear from employees, where workers keep their mouths shut because they still want a good reference or don’t want to burn bridges

A thriving economy contributes towards employee growth and movement, either within an organisation that an employee is already working for, or at another company. But the ideal scenario never really exists, so what structural causes and trends drive “no growth” feedback?

1. Market and economic barriers – demonstrated by a 2024 CIPD survey stating that “30% of employers expect staff levels to increase in the next three months, down from 37% 12 months ago.” To emphasise this trend, an IT education and training outfit notes that 37% of UK employers have frozen hiring, with the leaning more towards upskilling and reskilling the existing workforce instead.
2. Mobility constraints and skill gaps – nearly 80% of employers struggle to source the rightly skilled candidate for a job, according to the same survey above, with career progression falling the older the employee is, as the Organisation for Economic Cooperation & Development (OECD) found in a report. The report stated that job to job moves were 11% for the 30 to 35 year old bracket, but dropped down to 3.2% for those aged 65. The perception of good progression was 55% overall, which peaked at 64% for those aged between 25 and 34, dropping to 33% for the 65s and over.
3. Poor management and career support – nearly a quarter of UK workers are dissatisfied with their career, with 33% considering switching within the next 12 months, while some managers try to keep hold of precious talent by preventing internal movement to preserve their performance metrics.

To stop the rot of “no growth” feedback in exit interviews, businesses and outplacement providers can:

Build career development pathways and frameworks

To instill confidence in the workforce, staff need to see that their needs are being met on a regular basis. This means tailoring individual career development plans, so workers can see their next steps, giving frequent feedback, and leading on peer-led learning.

With the surge in interest in green jobs and technology, employers should prioritise training in these sectors, if viable, to ensure a well-rounded and future-ready workforce.

Improve internal promotion opportunities and management

Training managers to encourage internal mobility will keep staff on their toes and ready to take on more responsibilities. With clear criteria on promotions, business owners can support those sideways moves that some employees will want to take, as well as offering mentoring programmes and enhancing the visibility of remote workers.

Face up to diversity within the workforce, as well as structural barriers

Boosting the progression for women returning to the workplace and for older workers can be achieved with customised support, while outplacement can be used to identify those vital transferable skills.

Show that growth is real and achievable

This can be achieved by divulging all those success stories and clearly communicating career pathways that are simple for employees to follow. Staff turnover can be reduced by having regular check-ins and recognition of what they are trying to achieve.

• Losing employees due to there being no growth for them within the business is a real and current issue, reflecting economic barriers, poor management practices, a mismatch of skills, and a lack of clarity.
• Opportunities for staff retention are out there through upskilling, clear communication, the integration of career frameworks, and inclusive policies, so leaders can transform the narrative of exit interviews.
• Outplacement providers can become growth enablers, bridging that gap between internal deficits with external readiness.
• Consider investing in career frameworks, aligning staff retention with career development strategies, and auditing progression gaps.

If your organisation is considering outplacement services, contact us at the earliest opportunity to find out more.