Today I wanted to list 10 things you should consider before making a counteroffer to an employee.
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Today I wanted to talk to you about counteroffers and list ten things that you need to consider when making a counteroffer.
- What is the real reason this person is unhappy or considering leaving your company? What are the non-monetary reasons that they are unhappy?
- Is this person a true top performer in your organization? Is this someone you cannot afford to lose and would be extremely costly and challenging to replace?
- Do other employees already know that this person has been going to other interviews and wants to resign their position?
- Has your company or department specifically evaluated who your top performers are in advance?
- Have you really considered the ramifications and unknown consequences of developing a reputation of doing lots of counteroffers?
- You have to be extremely selective as to who you give a counteroffer to. Go with the 80/20 Rule- only give counters to 20% of your top performers and let the rest go.
- The counteroffer is not a retention technique. They really are a last-ditch effort to keep the best top performers at your company.
- Is this someone you should let go without a fight?
- Do not become a victim to the threat of other interviews. Some employees use it as a form of leverage in order to secure a raise.
- Keep in mind that the majority of employees who accept counteroffers are no longer with that company 12 months later.
You have to be extremely selective as to who you give a counteroffer to.
If you have any questions about this topic or any other topic, please give me a call. I look forward to speaking with you.
