I have been put in charge of handling an exit interview for an employee. I too have been through one in my previous company and I don't want it to be nasty. How do I do it?

Being sympathetic is the key to an exit interview. The employee is leaving because she has not had such a great time with the company. Find out the reasons for the unhappiness because it will greatly help your organisation retain the employees that you have! Allow the employee to leave with a good, positive feeling. Do not use the occasion to come down heavily on the person who has contributed towards the growth of the company. If you find that the employee is uncomfortable answering a question, do not force her because what you will get is only a fabricated answer. Do not make any caustic remarks on the performance of the employee when you are giving a feedback; if you must, give a feedback on where the person can improve (this you have heard from the people working with her) and do it without being judgmental. Exit interviews help organisations have a re-look at themselves.