Four Steps for Deciding if You Should Make a Counteroffer

Picture it: An exceptional employee has given their two weeks’ notice. Unfortunately, you feel your business will suffer from losing the talent this employee provides. You want to hold onto your employee, but you’re not sure a counteroffer is the right move. How do you decide?

How to decide if a counteroffer is worth it

Reach your final decision to counteroffer with these four steps:

  1. Talk to the employee. Find out why your employee is leaving. It could be that it’s simply time for him to move on for job growth or new and different experiences. Or perhaps an issue has occurred at work that your employee finds unacceptable. If you can discuss it with him and fix the problem, you might influence your employee to stay without the need for a counteroffer. This is especially true if he was happy with his job to begin with.
  2. Think it over, and be honest. Is the new job opportunity actually a great step for your employee? Of course, if she does great work with your company, you won’t want to let her walk away. But if she has limited room for advancement with your business, or just wants job experience that your company cannot offer, it may be time to let go.
  3. Will a counteroffer even work? After speaking with the employee, is it clear he has made up his mind to move on? If your employee is excited about this exciting new job offer, there may be no changing his mind. Also, if he’s been out job hunting, it’s probably for a good reason. In these cases, a counteroffer may come across as pointless or possibly even insulting: he may wonder why it took his resignation for you to admit his value. He may view your counteroffer with suspicion.
  4. How will the rest of your staff view your actions? Employees talk. Your exiting employee may very well have told her team members she’s been offered an exciting new position with another company. If suddenly she decides to stay, her coworkers may question why; this can create unrest, tension, and negative energy within your company. Is the potential impact to the rest of your team worth it to hold onto one employee?

What if you’ve decided to make the offer?

If you’ve decided to make a counteroffer, by all means, get creative. Make your offer unique to the employee. After discussing his motivation for the job switch, you’ll have a good idea of what your employee wants in order to stay. A hand-tailored counteroffer will show him you’ve considered his unique needs and value his contributions as an exceptional team member. Creative, customized counteroffers can increase the possibility of an employee’s acceptance.

Looking to supplement your staff?

If you’ve found yourself in need of additional workers, you can rely on Contemporary Staffing Solutions. Cover vacations, leaves of absence or transitions, or even fill full-time positions. To learn more about what Contemporary Staffing Solutions can do for your company, contact us today.