It is a conversation that every manager dreads. Your star employee has approached you with their resignation. They have been offered another job and will be leaving in two weeks. Your mind races with the next steps. Do you find a replacement? Do you promote someone else? Or do you make the employee a counter offer in the hopes they will remain with your company? It is important to consider not only how this action will affect the employee in question but also the office culture. Here are some things to think about when it comes to counter offers.
The cost for current or new employees.
A brand new employee salary will probably be lower than what you pay your current employee. Considering the counter offer will require you to pay them more, you may wish to let it go. However, there are hidden costs in hiring new employees that aren’t reflective in their salary. You will pay for the recruiting and hiring process, lost production, training time and new benefits. You have to determine if paying more money to your current employee is a better deal for your company.
The job may no longer be a personal fit.
However, it is important to understand that your employee did not give their notice in a vacuum. They probably thought about leaving for a long time and either began conducting their own job search or were recruited away as a passive candidate to an opportunity they couldn’t pass up. If they are no longer happy in your environment, more money probably won’t be the long-term solution. They may take the counter offer, but it won’t fix the problem.
Determine the circumstances of the decision.
Before you make the counter offer, you must determine why they’ve made the decision. Even if you decide not to pursue it, it is helpful to be armed with this information so you can improve the engagement levels of the rest of your staff. Ask them why they want to leave. Tell them that there will be no negative consequences if they are willing to be truthful with you. This is also a way for you both to determine if a counter offer would be productive.
Culture changes that affect employment satisfaction.
Ultimately, it may have absolutely nothing to do with you or your company. An employee might have life circumstances that have changed making it imperative they have a different working situation. They may need to be closer to home or have work from home options. If you can accommodate this situation, you may consider a counter offer. But otherwise, you need to ensure that you are able to be fair to the rest of your current staff if you make this arrangement.
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