Excerpted from the Executive Report – The Salary Talk: Eliminating the Angst of Discussing Pay with Employees
One of the most difficult decisions a manager or supervisor may have to face is whether to extend a counter-offer to an employee who has given notice of resignation because he or she has accepted a higher-paying position elsewhere.
Counter-offers rarely work long-term. Even if you save the employee temporarily by matching or even slightly exceeding the terms of the other offer, unless other dissatisfactions are addressed, it is very probable that within a couple of years, they’ll be looking for another job again.
That’s why most HR experts discourage counter-offers. If you can’t afford to have the employee leave for now, you may have to hold your nose and give him or her what’s needed in the way of money to keep the person in the fold, but you’d better start the succession planning right then and there – so you won’t be in the same position a couple of years hence.
And before you make it just a money conversation, you’d better find out a little more about everything that led to the person’s resignation in the first place. When people decide to leave a company, it’s rarely just about money – unless you know you’re paying your people significantly below market value, in which case you have to be prepared for a high turnover rate.
DIGGING DEEPER
Managers dread having to talk salary with employees. Not only is it uncomfortable, but it’s also where many managers make mistakes that lead to trouble later. Here’s help. Read the Executive Report – The Salary Talk: Eliminating the Angst of Discussing Pay with Employees
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