Handling the Counter Offer

The counter offer doesn’t have to be dreaded – it can work in your favour.

Scenario 1: Your existing employee resigns – you are the one making the counter offer

You have an employee whom you value though have not perhaps communicated this effectively over the past months. They come to you and resign which makes you realise just what a large hole they are going to leave.

Lots to consider here. Before making a knee jerk reaction, the most important question to ask is why are they leaving. Be very clear on these reasons and understand on which points you will be able to negotiate. Not all reasons are purely financial. Is it the role, flexibility, progression opportunities, boss, change of career, fallen out of love with the company etc etc.

Once you have a clear idea of these reasons then it is time to evaluate whether the business can accommodate the changes. Be mindful that throwing money at a situation will only be a short-term fix. The same problems will resurface in time.

Of course, it will cost time and money to hire a replacement and before you dive into keeping the person just for the sake of ease, be honest about whether there might be someone else out there better suited to it.

Once you have a clear understanding of the reasons for their potential departure, you will be well equipped to persuade them to stay.

Scenario 2: You have made an offer to a new employee and they have been counter offered by their current employment.

The candidate is being put in a unique position where they are going to have to choose between joining your company with all the possible, maybes of future happiness or staying with something they know and all the promises that have possibly come too late with their existing employment.

The worst thing you can do in this situation is to put any pressure on the individual to make the choice. This sends all the wrong signals and is the quickest way to loose someone. It is hard but you have to respect that they need a little time to consider the proposal. You may also have to consider matching the salary of the other opportunity as you are the unknown in the equation.

I guess the only thing we can do is to look after our employees, value them and then they may not leave in the first place!