When an employee hands in their notice, it can be a worrying time for a business. This person has been a part of the team for some time and is familiar with how everything works – now they are leaving! It’s natural to want to do everything you can to keep them, including offering them more money. In this blog post, we will discuss whether or not businesses should offer counter offers and what to consider when making this decision.
When an employee hands in their notice, it can be a worrying time for any business. The person has been part of the team for some time and is familiar with how everything works – now they are leaving! It’s natural to want to do everything you can to keep them, including offering them more money. But is this always the best course of action? In this blog post, we will discuss whether or not businesses should offer counter offers and what to consider when making this decision.
There are a few things you need to take into account before making a decision on whether or not to offer a counter offer. Firstly, think about why the person is leaving. If they have simply been headhunted by another company and are looking for a pay rise, then a counter offer may be the way to keep them. However, if they are leaving because they are unhappy with their current role or feel like they are not being valued, then a counter offer is unlikely to solve these problems.
Another thing to consider is how much it would cost to replace this employee. If you have someone in mind who can do the job just as well (or even better!) than the person who is leaving, then you may not need to make a counter offer. On the other hand, if it would be difficult and costly to replace them, then a counter offer might be worth considering.
Finally, think about what message you would be sending by making a counter offer. If you make a counter offer to every employee who hands in their notice, then you may find yourself in a difficult financial position. Alternatively, if you only make counter offers to key members of staff, then this could create tension and resentment within the team.
How much salary increase should a counter offer include?
There is no easy answer to this question as it will depend on a number of factors, including the reasons for leaving, the cost of replacement and the company’s financial situation. However, as a general guide, you should aim to offer a salary increase of between 20-30%.
Would a bonus help?
Probably not. A one-off bonus may persuade an employee to stay for a short period of time, but it is unlikely to solve any underlying problems.
What about other benefits?
Other benefits, such as flexible working hours or extra holiday, may be more effective in persuading an employee to stay. These types of perks can show that you value your employees and are willing to work with them to find a solution that suits both parties.
So, should you offer a counter offer when an employee hands in their notice? There is no easy answer to this question – it depends on each individual situation. However, by taking the time to consider all of the factors involved, you should be able to make the best decision for your business.
Opening lines to start a discussion on why they are leaving:
Could I ask wether money is a critical factor?
Would you say that you’re leaving for a better opportunity or because you’re unhappy?
What message do you think we would be sending by making a counter offer?
Is there anything we could do to make your experience here better?
We really value our employees and want to keep you happy, so is there anything we can do?
Thank you for giving us notice- is there a particular reason why you’re looking to leave?
By taking the time to ask questions and understand their reasons for leaving, you may be able to change their mind or at least get some insight as to why they are leaving. If it’s simply for a pay raise, then a counter offer may work. However, if they are leaving because of unhappiness with their current role, then a counter offer is unlikely to work and may do more harm than good. Thank them for their notice and try to have an open and honest discussion about their reasons for leaving before making a decision on whether or not to offer a counter offer.
How to approach the end result and what to say:
If you decide to make a counter offer:
Thank you for deciding to stay with us! We really appreciate it.
We’re glad we could come to an agreement that works for both of us.
Welcome back! We’re happy to have you on board.
Thank you for staying! We value your contributions to the team.
If you decide not to make a counter offer:
We understand your decision and we respect your choice to leave.
We’re sorry to see you go but we wish you all the best in your future endeavors.
Thank you for everything you’ve done for us. We wish you the best of luck.
Thank them for their decision and be respectful, even if you are disappointed. If they have been a valued member of your team, thank them for their contributions and let them know that they will be missed. Wishing them well shows that you care about their happiness and wellbeing, even if they are no longer going to be working for you.
In summary, there is no easy answer as to whether or not you should offer a counter offer when an employee hands in their notice. It depends on each individual situation and you need to weigh up all of the pros and cons before making a decision. Thank the employee for their notice and try to have an open and honest discussion about their reasons for leaving before making a final decision.