We all work hard to keep our teams engaged. However, even when we do a great job at this, any employee can surprise you with a resignation letter when they receive a new job offer from another company.
Who got a new job offer?
If they are a lower or average contributor, then the decision is not so hard–let them go.
If they are a top performer or someone you had high hopes for, then this decision becomes more difficult.
Should you extend a counteroffer?
Most employees who accept a counteroffer only stay for another 6-12 months. If an employee is motivated at one time to look externally, they will look again. A HBR study cites that 71% of senior executives and 67% of HR leaders in the current company would question the employee’s loyalty going forward. This makes sense as loyalty is a component of trust and that is a tough emotion to battle.
If an employee comes to me with a new job offer to counter, then I wish them well and organize their departure as soon as possible. I never extend a counteroffer, but you have to decide what is right for you and your organization, so that there is consistency.
Very few employees will leave over salary increases alone; here is a great article from SHRM on this. I’ve found that when organizations have top performers bringing in new job offers, they have missed out on having career development conversations with their employees. The employee feels that the only way to further their career is to show their manager that someone else wants them.
The process that I promote in my organization is for employees to schedule a meeting with their manager to discuss their career especially before job shopping.
If I cannot provide the career path that’s best for the person, then I commit to helping them find their next job. This keeps them engaged as an employee and leaves a positive impression of the organization.
I know it sounds counterintuitive, but through this process, employees have gained a new appreciation for the company and stayed.
Have you found a successful approach to new job offers and counteroffers?
I’d enjoy hearing your approach in the comments below or on a call.