It’s every manager’s worst case scenario. One of your best employees comes to your office, resignation letter in hand. How do you know if you should shake his hand and send him on his way or if it makes sense to make a counter-offer?
First determine why he wants to leave.
He wants more money.
Can you afford to give him a raise? Does he deserve more? If the employee is not at the top of the pay range and you have room in your budget, it may be worth considering – assuming you really want to keep him on board.
He’s looking for new challenges.
Is the employee feeling unchallenged or undervalued? Has his career stagnated? You may be able to offer him a promotion or even a lateral move that will use his skills more effectively to keep him happily employed with your company.
He doesn’t like his manager or the company.
This is not a problem that can be resolved by throwing money at it. Ideally, you should have a handle on how your employees feel about their jobs. But if not, this may be your chance to open a dialog to find out what it will take to keep him on board. Frequently, it is time to just shake hands and move on.
Why not make a counter-offer?
He’s already gone.
Once someone has begun job searching and received an offer from another company, he has often mentally checked out. You may even find evidence now that their work has slipped over the last weeks and months that had not previously noticed.
The grass is always greener.
Even if the employee does accept the counteroffer, he now knows his value in the marketplace and may continue to have a wandering eye.
The offer was just leverage.
Some employees don’t really want to leave. They solicit offers to prove their market value with no true intention of leaving. This is dishonest behavior and you are probably just better off letting them go.
Counter-offers seldom work out in the long run.
Whether you resent being forced to come up with more money, or lose confidence in the employee’s loyalty, your working relationship may have been irreparably damaged. The employee may be resentful as well, wondering why you hadn’t paid him more in the first place, or if he should still have an eye out for a better offer.
If you need to find a replacement for an employee who’s moved on, TERRA Staffing can provide highly qualified talent for your company. We can help you to recruit, screen and hire candidates who will fit not only both your culture and your skill requirements. Contact us today for access to highly skilled Portland area talent!