Retention is once again raising its head as the bugaboo of HR managers. You think you've got things settled and then suddenly your best people want to move on. And lately, it's been harder and harder to find just plain good, experienced people, never mind superstars.

Once an employee announces his or her decision to leave your organization, it's either "Good luck." or "Let's make a deal." The website, YourHRGuy.com, recently offered some best practices for counteroffers.

1. First, listen to why the employee is leaving. And probe to be sure you are getting the real reasons. Many employees might start by saying something vague like "It's time for a change," or "They made me an offer I couldn't pass up." But you can't make an attractive counteroffer until you know the real reason—"I don't feel that I have a future with this company," or "It's clear that my department is going to be dismantled in the re-org."

Remember, it's easy to assume that people are leaving for more money, but that's often not the case.

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2. Read between the lines. You're likely not to get the whole story from the individual, so do a little thinking. Has some business change impacted him or her? What about the employee's situation could be making him or her think about leaving?

3. Craft a formal counteroffer. Your offer should address the concerns the employee expressed in step 1 and what you assume to be concerns based on step 2.

4. Know when to stop. If the employee's demands are way out of line, step back and evaluate. You're probably better off stopping the negotiations.

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5. Don't set a precedent. Reserve generous counteroffers for outstanding employees you can't afford to lose. Don't let the word get out that anyone who says he or she is leaving will get a counteroffer.

6. Don't burn bridges. If the counteroffer doesn't get accepted, it's still better to have a good relationship with a former employee than a bad one.

What's the upside to counteroffers? Counteroffers can definitely have a positive impact. They are particularly helpful in situations where an important project is half-done and the person wanting to leave is a key (or the only) player.

And the downside? We'll look at that in tomorrow's Advisor.

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