Ghosts and goblins bedevil the children this Halloween week, but it’s retention that bedevils HR managers. Will counteroffers help retention? In this two-part article, today’s experts say yes, tomorrow’s say no.
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.
BLR’s all-in-one website, HR.BLR.com, brings you all the guidance you need on topics like this. Examine it at no cost or risk and get a complimentary gift. Click for info.
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.
Take a no cost, no obligation look at HR.BLR.com and get a complimentary copy of our special report, Top 100 FLSA Q&As. It’s yours, no matter what you decide. Click to learn more.
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.
100 Overtime Questions Answered … on Us!
Examine BLR’s “all you need in one place” website, HR.BLR.com, at no cost or risk and we’ll send you a yours-to-keep-whatever-you-decide copy of our special report on the Top 100 FLSA Overtime Q&As. It’s must-reading now that FLSA violations are the government’s #1 enforcement target. Read more.
Interesting article, but I have a question and would welcome ideas please!
I would like to know what approach people take when one or more than one person resigns to go elsewhere and the real reason is their newly appointed senior manager’s management style. The senior manager is still on their ‘homeymoon’ period and no-one wants to admmit that this new senior manager is anything but the best!
Having been i a sales recruiter since 2003 I’ve had the opportunity to witness many counteroffers. I’ve had candidates receive them and client companies give them. In both cases I think they’re a bad idea to offer or accept. It sets a bad precedent if a company shows they can be held hostage for more money or workplace changes. As for employees accepting them – do you really want to hold a gun to your employer’s head to get what you want?